DoD's $20.6M Chartered Tugs Contract for Pearl Harbor Navigational Services Awarded to P & R Water Taxi LLC
Contract Overview
Contract Amount: $20,619,168 ($20.6M)
Contractor: P & R Water Taxi LLC
Awarding Agency: Department of Defense
Start Date: 2012-01-06
End Date: 2017-03-31
Contract Duration: 1,911 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PEARL HARBOR TIME CHARTERED TUGS
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96818
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $20.6 million to P & R WATER TAXI LLC for work described as: PEARL HARBOR TIME CHARTERED TUGS Key points: 1. The contract value of $20.6 million over approximately 5 years for navigational services is significant for specialized maritime support. 2. P & R Water Taxi LLC secured this contract under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be potential service disruptions or cost overruns if unforeseen operational challenges arise. 4. This spending falls within the broader 'Other' sector, encompassing essential operational support services for military bases.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear pricing agreement. Benchmarking against similar navigational support contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The firm fixed price contract aims to control costs, ensuring taxpayer funds are used efficiently for essential navigational services.
Public Impact
Ensures continuous and safe navigation for naval vessels at a critical Pacific base. Supports military readiness by maintaining operational access to Pearl Harbor. Provides essential services that underpin the daily functions of the Navy's Pacific fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if fuel costs or operational demands escalate significantly.
- Dependence on a single contractor for critical navigational support.
Positive Signals
- Awarded through full and open competition, suggesting fair market pricing.
- Firm fixed price contract provides cost certainty for the duration.
- Supports a vital military installation's operational needs.
Sector Analysis
This contract for chartered tug services supports maritime operations at a key naval base. Spending benchmarks for similar specialized maritime support services would be relevant for comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract was awarded through full and open competition, implying a standard oversight process. Monitoring performance and adherence to contract terms is crucial for accountability.
Related Government Programs
- Navigational Services to Shipping
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if market conditions change significantly.
- Dependence on a single contractor for critical services.
- Need for ongoing performance monitoring to ensure service quality.
- Limited visibility into small business subcontracting opportunities.
Tags
navigational-services-to-shipping, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to P & R WATER TAXI LLC. PEARL HARBOR TIME CHARTERED TUGS
Who is the contractor on this award?
The obligated recipient is P & R WATER TAXI 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 $20.6 million.
What is the period of performance?
Start: 2012-01-06. End: 2017-03-31.
What is the typical cost range for chartered tug services at major naval ports?
The typical cost range for chartered tug services at major naval ports can vary widely based on vessel size, duration of service, specific operational requirements, and geographic location. Factors like crew costs, fuel, maintenance, and insurance all contribute. Without specific details on the tugs' capabilities and the exact scope of services, a precise benchmark is difficult. However, contracts for similar services can range from hundreds to thousands of dollars per day per vessel.
What are the primary risks associated with relying on chartered tug services for naval operations?
Primary risks include potential service disruptions due to vessel maintenance, crew availability, or unforeseen operational issues. There's also a risk of price escalation if fuel costs or demand increase beyond initial projections. Furthermore, dependence on a single provider, even if competitively selected, can create vulnerabilities if that provider faces financial or operational difficulties, potentially impacting mission readiness.
How effectively does this contract ensure the continuous availability of essential navigational support?
The firm fixed price contract structure, combined with a multi-year duration, suggests an intent to ensure continuous availability. However, effectiveness hinges on the contractor's operational capacity and adherence to service level agreements. Regular performance monitoring by the Department of the Navy is critical to ensure the tugs are consistently available and meet the required standards for safe navigation.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003311R1010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 123 AHUI ST, HONOLULU, HI, 96813
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,619,168
Exercised Options: $20,619,168
Current Obligation: $20,619,168
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-01-06
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2017-06-07
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