DoD's $136M Deep Sea Passenger Transport Contract Awarded to Seaward Services, Inc
Contract Overview
Contract Amount: $135,836,483 ($135.8M)
Contractor: Seaward Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-06-20
End Date: 2022-06-30
Contract Duration: 3,297 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: FY13 GUAM INDUSTRIAL ASSISTANCE
Place of Performance
Location: NEW ALBANY, FLOYD County, INDIANA, 47150
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $135.8 million to SEAWARD SERVICES, INC. for work described as: FY13 GUAM INDUSTRIAL ASSISTANCE Key points: 1. Contract awarded to Seaward Services, Inc. for deep sea passenger transportation. 2. Significant contract value of $135.8 million over a 9-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans a long duration, potentially impacting long-term resource allocation. 5. The North American Industry Classification System (NAICS) code is 483112.
Value Assessment
Rating: fair
The contract value of $135.8 million over 9 years is substantial. Benchmarking against similar deep sea passenger transportation contracts is difficult without more specific service details and market data. The firm fixed price structure provides cost certainty but may limit flexibility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The $135.8 million expenditure represents a significant investment of taxpayer funds for deep sea passenger transportation services over nearly a decade.
Public Impact
Taxpayers are funding a long-term contract for essential transportation services. The duration of the contract suggests a sustained need for these services by the Department of the Navy. The specific impact on civilian passengers or military personnel is not detailed but is implied by the service type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (9 years) may lead to price escalation or missed opportunities for renegotiation.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Potential for contractor lock-in due to specialized nature of deep sea transport.
Positive Signals
- Full and open competition suggests a potentially competitive award.
- Firm fixed price contract provides budget certainty.
- Contract awarded to a single entity, potentially simplifying management.
Sector Analysis
The transportation sector, particularly specialized maritime services like deep sea passenger transport, often involves significant capital investment and regulatory compliance. Spending benchmarks are highly dependent on the specific routes, vessel types, and service levels required.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The large contract value and specialized nature of deep sea passenger transportation may present barriers to entry for smaller firms.
Oversight & Accountability
The contract's long duration and significant value warrant robust oversight to ensure performance, cost control, and adherence to terms. Regular performance reviews and audits would be crucial for accountability.
Related Government Programs
- Deep Sea Passenger Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration
- Lack of detailed performance metrics
- Potential for contractor complacency
- Specialized service may limit future competition
Tags
deep-sea-passenger-transportation, department-of-defense, in, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $135.8 million to SEAWARD SERVICES, INC.. FY13 GUAM INDUSTRIAL ASSISTANCE
Who is the contractor on this award?
The obligated recipient is SEAWARD SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $135.8 million.
What is the period of performance?
Start: 2013-06-20. End: 2022-06-30.
What specific operational requirements and performance standards are outlined in the contract to ensure the government receives adequate value for the $135.8 million expenditure?
The contract details likely specify the types of vessels, passenger capacity, routes, safety protocols, and service frequencies required. Performance standards would typically include on-time performance, passenger comfort, and adherence to maritime regulations. Without access to the full contract, a precise assessment of value is challenging, but the firm fixed price suggests a defined scope of work.
What are the potential risks associated with a 9-year firm fixed price contract for deep sea passenger transportation, particularly concerning cost overruns or service quality degradation?
A significant risk is that market conditions or operational costs could change dramatically over 9 years, potentially making the fixed price disadvantageous for the contractor, leading to reduced service quality, or for the government if costs escalate beyond initial projections. Contractor complacency or reduced focus on efficiency over such a long period is also a concern.
How effectively does this contract leverage competition to ensure optimal pricing and service delivery for deep sea passenger transportation needs?
The use of 'full and open competition' is a positive indicator that the government sought multiple bids, which typically drives down prices and encourages better service. However, the long-term nature and specialized requirements of deep sea transport might limit the number of truly competitive bidders, potentially impacting the long-term effectiveness of this initial competition.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Passenger 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: N0003312R5302
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 222 PEARL STREET, 3RD FLOOR, NEW ALBANY, IN, 47150
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $135,836,483
Exercised Options: $135,836,483
Current Obligation: $135,836,483
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-06-20
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2023-07-11
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