DoD awards $37.1M for Deep Sea Freight Transportation to Gibson Shipholding Corporation
Contract Overview
Contract Amount: $37,127,636 ($37.1M)
Contractor: Gibson Shipholding Corporation
Awarding Agency: Department of Defense
Start Date: 2000-06-16
End Date: 2004-09-30
Contract Duration: 1,567 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $37.1 million to GIBSON SHIPHOLDING CORPORATION for work described as: Key points: 1. Contract awarded for deep sea freight transportation services. 2. Significant contract value of $37.1 million over its duration. 3. Full and open competition was utilized. 4. Services provided by Gibson Shipholding Corporation.
Value Assessment
Rating: fair
The contract value of $37.1 million for deep sea freight transportation over approximately 4 years appears reasonable given the nature of the service. Benchmarking against similar large-scale maritime logistics contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for price discovery. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for services.
Public Impact
Ensures critical deep sea freight transportation capabilities for the Department of the Navy. Supports global logistics and supply chain operations for military deployments. Potential impact on commercial shipping rates if significant capacity is utilized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (approx. 4 years) may limit flexibility for future technological advancements or cost savings.
- Lack of specific performance metrics or quality assurance details provided.
- Potential for price escalation clauses not detailed.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Firm fixed price contract structure provides cost certainty for the government.
- Experienced contractor likely ensures reliable service delivery.
Sector Analysis
The defense sector relies heavily on specialized transportation services like deep sea freight. Spending in this area is crucial for maintaining global reach and operational readiness, with benchmarks varying widely based on vessel type, route, and duration.
Small Business Impact
This contract does not appear to have specific provisions or set-asides for small businesses. The nature of deep sea freight transportation often involves large, specialized assets typically owned by larger corporations.
Oversight & Accountability
Oversight would typically involve contract management by the Department of the Navy to ensure service delivery aligns with contract terms and performance expectations. Accountability rests with the contracting officer and the awarded vendor.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long-term commitment may not adapt to evolving needs.
- Potential for cost overruns if not managed tightly.
- Dependence on a single provider for critical services.
- Limited transparency on specific performance metrics.
Tags
deep-sea-freight-transportation, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.1 million to GIBSON SHIPHOLDING CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GIBSON SHIPHOLDING 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 $37.1 million.
What is the period of performance?
Start: 2000-06-16. End: 2004-09-30.
What is the specific breakdown of costs within the $37.1 million award, and how do these align with industry standards for deep sea freight?
A detailed cost breakdown is not provided in the summary data. However, typical cost components for such services include vessel charter rates, crewing, fuel, maintenance, insurance, and port fees. Benchmarking against industry standards would require access to detailed pricing proposals and market data for comparable shipping routes and vessel classes.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective delivery of freight transportation?
The provided data does not specify the KPIs or SLAs. Effective delivery would typically be measured by on-time delivery, cargo condition upon arrival, adherence to agreed-upon routes, and compliance with safety and environmental regulations. The contracting officer's representative would monitor these aspects.
Given the 4-year duration, what mechanisms are in place to mitigate risks associated with fuel price volatility and potential changes in international shipping regulations?
The firm fixed price contract structure suggests that the risk of fuel price volatility and regulatory changes is largely borne by the contractor, Gibson Shipholding Corporation. However, the contract might include specific clauses addressing these risks, such as escalation adjustments or force majeure provisions, which are not detailed here.
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: 30
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: APL Maritime, Ltd. (UEI: 101920908)
Address: 6901 ROCKLEDGE DR STE 200, BETHESDA, MD, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-06-16
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2009-03-26
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