DoD awards $36.9M for Deep Sea Freight Transportation to Hornbeck Offshore Services LLC
Contract Overview
Contract Amount: $36,935,142 ($36.9M)
Contractor: Hornbeck Offshore Services LLC
Awarding Agency: Department of Defense
Start Date: 2010-10-13
End Date: 2015-12-30
Contract Duration: 1,904 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: SRDRS CONTRACT N0003311C2000.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $36.9 million to HORNBECK OFFSHORE SERVICES LLC for work described as: SRDRS CONTRACT N0003311C2000. Key points: 1. Contract awarded for deep sea freight transportation services. 2. Hornbeck Offshore Services LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract duration is 1904 days.
Value Assessment
Rating: fair
The contract value of $36.9M over approximately 5 years suggests a significant but not excessive annual spend. Benchmarking against similar deep sea freight contracts is needed for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered.
Public Impact
Ensures critical deep sea freight transportation capabilities for the Department of the Navy. Supports maritime logistics and supply chain operations. Potential impact on commercial shipping rates due to government demand.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if fuel prices or operational demands fluctuate significantly.
- Dependence on a single contractor for essential services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type helps control costs.
- Clear contract end date.
Sector Analysis
The defense sector relies heavily on specialized transportation services for global operations. Spending benchmarks for deep sea freight are highly variable based on vessel type, route, and duration.
Small Business Impact
The provided data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
Oversight would focus on contract performance, adherence to delivery schedules, and cost management throughout the contract's duration. The Department of the Navy is responsible for monitoring this contract.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy (1904 days).
- No indication of small business participation.
- Specific performance metrics not detailed.
- Potential exposure to fuel price fluctuations.
- Reliance on a single awardee for critical services.
Tags
deep-sea-freight-transportation, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.9 million to HORNBECK OFFSHORE SERVICES LLC. SRDRS CONTRACT N0003311C2000.
Who is the contractor on this award?
The obligated recipient is HORNBECK OFFSHORE SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $36.9 million.
What is the period of performance?
Start: 2010-10-13. End: 2015-12-30.
What was the average annual cost of this contract, and how does it compare to industry benchmarks for similar deep sea freight services?
The contract value of $36.9M over approximately 1904 days (about 5.2 years) averages to roughly $7.1M per year. Comparing this to industry benchmarks requires detailed analysis of vessel class, cargo type, route, and market conditions, which are not fully detailed in the provided data. However, this annual figure provides a starting point for value assessment.
What specific risks were identified during the full and open competition process, and how were they mitigated in the contract terms?
While the data confirms full and open competition, it doesn't detail specific risks identified or their mitigation strategies. Typically, risks in such contracts could include operational delays, fuel price volatility, or vessel availability. Mitigation might involve performance bonds, liquidated damages clauses, or specific fuel adjustment mechanisms within the firm fixed-price structure.
How effectively did the firm fixed-price contract type ensure cost control and value for the taxpayer, given the long duration and nature of the service?
A firm fixed-price contract is designed to provide cost certainty for the government, shifting most cost overrun risk to the contractor. For the taxpayer, this means the price is largely set, protecting against unexpected increases. However, it could also mean the government misses out on potential savings if costs decrease significantly, and the contractor may build in higher contingency due to the risk they assume.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003310R2000
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hornbeck Offshore Services, Inc. (UEI: 947299590)
Address: 103 NORTHPARK BLVD STE 300, COVINGTON, LA, 70433
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,935,142
Exercised Options: $36,935,142
Current Obligation: $36,935,142
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-10-13
Current End Date: 2015-12-30
Potential End Date: 2015-12-30 00:00:00
Last Modified: 2017-06-23
More Contracts from Hornbeck Offshore Services LLC
- Base Period Charter Hire — $229.7M (Department of Defense)
- Procurement of Three Blocking Vessel — $152.0M (Department of Defense)
- Federal Contract — $146.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)