DoD's $418.5M Marine Charter Contract Awarded to Waterman Steamship Corporation

Contract Overview

Contract Amount: $418,541,892 ($418.5M)

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: $269.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: 200012!1700!003112!G0333 !MILITARY SEALIFT COMMAND !N0003382C1021 !A!*!P00063 !20000703!20100115!041224197!008198699!094915493!N!1N9S1!WATERMAN STEAMSHIP CORPORATION!650 POYDRAS STREET !NEW ORLEANS !LA!70130!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !0001!+000014509006!N!N!000000000000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !4412!3!*!*!A!B!A!*!A !Y!K!2!010!B!* !C!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: MOBILE, MOBILE County, ALABAMA, 36602

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $418.5 million to WATERMAN STEAMSHIP CORPORATION for work described as: 200012!1700!003112!G0333 !MILITARY SEALIFT COMMAND !N0003382C1021 !A!*!P00063 !20000703!20100115!041224197!008198699!094915493!N!1N9S1!WATERMAN STEAMSHIP CORPORATION!650 POYDRAS STREET !NEW ORLEANS !LA!70130!55000!071!22!NEW ORLEANS !ORL… Key points: 1. The contract, valued at $418.5 million, was awarded to Waterman Steamship Corporation for marine charter services. 2. This award falls under the Deep Sea Freight Transportation sector, indicating a need for specialized shipping capabilities. 3. The contract utilized full and open competition, suggesting a competitive bidding process aimed at achieving fair pricing. 4. The fixed-price contract with economic price adjustment introduces potential cost fluctuations over its duration.

Value Assessment

Rating: good

The contract value of $418.5 million for marine charter services appears substantial. Benchmarking against similar large-scale maritime logistics contracts would be necessary for a precise assessment, but the use of full and open competition suggests an effort to secure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for a broad range of bidders and fosters price discovery. This method is generally expected to yield more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely benefiting from a price that reflects market conditions, rather than a premium associated with limited options.

Public Impact

Ensures critical maritime transportation capabilities for the Department of Defense. Supports the operational readiness of naval and military sealift operations. Impacts the maritime shipping industry through a significant contract award. Potential for economic activity in regions where Waterman Steamship Corporation operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns if fuel or other input costs rise significantly.
Contract duration of over 1500 days requires ongoing monitoring for performance and cost control.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price element provides some cost certainty.
Contract supports essential military sealift operations.

Sector Analysis

This contract falls within the Deep Sea Freight Transportation sector, a critical component of global logistics and military operations. Spending in this sector is often driven by defense needs, international trade, and the movement of large-scale goods. Benchmarks would typically consider the size and duration of similar charter agreements.

Small Business Impact

The data indicates the award went to Waterman Steamship Corporation, a large business. There is no explicit information suggesting direct subcontracting opportunities for small businesses within this specific award, though the overall maritime industry may involve SMB participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Standard government oversight mechanisms for contract performance, financial reporting, and compliance would apply. The duration suggests a need for sustained monitoring.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to economic price adjustment.
Long contract duration requires sustained oversight.
Lack of specific detail on 'marine charter for things' hinders granular analysis.
No clear indication of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $418.5 million to WATERMAN STEAMSHIP CORPORATION. 200012!1700!003112!G0333 !MILITARY SEALIFT COMMAND !N0003382C1021 !A!*!P00063 !20000703!20100115!041224197!008198699!094915493!N!1N9S1!WATERMAN STEAMSHIP CORPORATION!650 POYDRAS STREET !NEW ORLEANS !LA!70130!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !0001!+000014509006!N!N!000000000000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !4412!3!*!*!A!B!A!*!A !Y!K!

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 $418.5 million.

What is the period of performance?

Start: 2000-07-03. End: 2004-10-01.

What is the specific nature of the 'marine charter for things' and how does its cost compare to similar services?

The 'marine charter for things' likely refers to the leasing of vessels for transporting goods and equipment. Without specific details on the type of vessels, cargo, and routes, a precise cost comparison is difficult. However, the $418.5 million value over its term, awarded via full and open competition, suggests it was deemed competitive at the time of award. Further analysis would require comparing rates for similar vessel classes and charter durations in the relevant maritime markets.

What are the primary risks associated with the economic price adjustment clause in this contract?

The primary risk of the economic price adjustment (EPA) clause is potential cost escalation for the government. If fuel prices, labor costs, or other specified indices increase significantly during the contract period, the total expenditure could exceed the initial fixed-price estimate. This necessitates careful monitoring of market trends and the EPA's trigger mechanisms to manage budget impacts effectively.

How effectively does this contract support the Military Sealift Command's mission, and are there alternative service delivery models?

This contract directly supports the Military Sealift Command's (MSC) mission by securing vital maritime transportation capacity. MSC relies on chartered vessels to move personnel, equipment, and supplies globally. While chartering is a common and often efficient model, MSC also operates government-owned vessels. The effectiveness of this specific charter depends on factors like vessel availability, cost-competitiveness compared to owned assets, and operational flexibility provided by the contractor.

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