DoD's $343M Deep Sea Freight Contract with Waterman Steamship Corporation Raises Questions on Value and Competition
Contract Overview
Contract Amount: $343,481,902 ($343.5M)
Contractor: Waterman Steamship Corporation
Awarding Agency: Department of Defense
Start Date: 2000-07-03
End Date: 2004-10-01
Contract Duration: 1,551 days
Daily Burn Rate: $221.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Place of Performance
Location: MOBILE, MOBILE County, ALABAMA, 36602
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $343.5 million to WATERMAN STEAMSHIP CORPORATION for work described as: Key points: 1. Significant contract value of $343.48M for freight transportation. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. Fixed Price with Economic Price Adjustment contract type introduces potential cost volatility. 4. The contract spans over 4 years, indicating a long-term need for services.
Value Assessment
Rating: fair
The contract value of $343.48M for deep sea freight transportation over 1551 days appears substantial. Benchmarking against similar DoD freight contracts is necessary to determine if this price reflects fair market value, especially considering the fixed-price with economic adjustment structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific details of the bidding process and the number of bids received are crucial to assess the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for deep sea freight transportation. The effectiveness of the competitive process and the final negotiated price will determine the overall impact on taxpayers.
Public Impact
Ensures the Department of Defense has access to critical deep sea freight transportation services. Supports maritime industry and potentially jobs within the sector. The economic price adjustment clause could lead to increased costs for taxpayers if fuel or other economic factors rise significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to economic price adjustment.
- Long contract duration may not reflect current market efficiencies.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Provides essential transportation services for the Department of Defense.
Sector Analysis
This contract falls within the transportation sector, specifically focusing on deep sea freight. Spending benchmarks for similar government contracts in this area are essential for evaluating cost-effectiveness. The DoD's reliance on such services highlights the importance of efficient logistics.
Small Business Impact
The data indicates that small businesses were not a direct participant in this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight of this contract would involve monitoring the performance of Waterman Steamship Corporation and ensuring compliance with the terms, particularly regarding the economic price adjustment. Regular reviews of pricing and service delivery are crucial for accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Economic Price Adjustment Clause
- Long Contract Duration
- Lack of Small Business Participation
- Potential for Non-Competitive Pricing if Competition Was Limited
Tags
deep-sea-freight-transportation, department-of-defense, al, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $343.5 million to WATERMAN STEAMSHIP CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WATERMAN STEAMSHIP CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $343.5 million.
What is the period of performance?
Start: 2000-07-03. End: 2004-10-01.
What was the total cost increase due to the economic price adjustment clause over the life of the contract?
To determine the total cost increase from the economic price adjustment, one would need access to the contract's performance data and the specific indices used for adjustments. This would involve comparing the initial fixed price with the final invoiced amounts, accounting for fluctuations in fuel prices, labor costs, and other economic factors stipulated in the contract.
How many bids were received, and what was the competitive range of pricing during the full and open competition?
Information regarding the number of bids received and the range of pricing is not provided in the summary data. A thorough analysis would require accessing the solicitation details and bid tabulation records to understand the level of competition and how Waterman Steamship Corporation's bid compared to others.
What specific performance metrics were established, and how effectively did Waterman Steamship Corporation meet them?
The provided data does not include details on performance metrics or the contractor's performance history. Evaluating effectiveness would necessitate reviewing performance reports, delivery records, and any quality assurance assessments conducted by the Department of the Navy throughout the contract period.
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
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: International Shipholding Corporation (UEI: 094915493)
Address: 11 NORTH WATER STREET, STE 18290, MOBILE, AL, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Timeline
Start Date: 2000-07-03
Current End Date: 2004-10-01
Potential End Date: 2004-10-01 00:00:00
Last Modified: 2014-03-25
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