DoD Awards $18.3M Contract for Vessel Support Services to Seaward Services, Inc
Contract Overview
Contract Amount: $18,338,895 ($18.3M)
Contractor: Seaward Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-05-09
End Date: 2026-05-09
Contract Duration: 1,461 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: VESSEL AND SUPPORT SERVICES
Place of Performance
Location: NEW ALBANY, FLOYD County, INDIANA, 47150
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to SEAWARD SERVICES, INC. for work described as: VESSEL AND SUPPORT SERVICES Key points: 1. Contract awarded to Seaward Services, Inc. for vessel and support services. 2. The contract has a total value of $18.3 million. 3. Competition method was 'Full and Open Competition'. 4. The contract type is 'Cost Plus Fixed Fee'. 5. Services are categorized under 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for vessel support services is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the lowest price compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for essential vessel and support services, with the expectation that competition ensured a reasonable price. Oversight is crucial to manage costs effectively.
Public Impact
Ensures operational readiness for naval vessels through essential support services. Supports a private sector company, Seaward Services, Inc., contributing to the maritime industry. The contract duration of approximately four years impacts long-term planning for naval support. Potential for cost increases due to the Cost Plus Fixed Fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may lead to higher costs.
- Lack of specific service details makes detailed cost analysis challenging.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical naval operations.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to maritime operations. Spending in this sector is often driven by defense needs and the complexity of specialized services.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as Seaward Services, Inc. is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Navy is the contracting agency, responsible for oversight. The contract's Cost Plus Fixed Fee nature necessitates robust monitoring to ensure costs are reasonable and services are delivered effectively.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Broad service category lacks specificity.
- Potential for cost escalation.
- Limited insight into subcontractor utilization.
Tags
all-other-professional-scientific-and-te, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to SEAWARD SERVICES, INC.. VESSEL AND SUPPORT SERVICES
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 $18.3 million.
What is the period of performance?
Start: 2022-05-09. End: 2026-05-09.
What specific vessel and support services are included in this contract, and how do they align with operational needs?
The contract details are limited, but 'VESSEL AND SUPPORT SERVICES' suggests a broad range of activities potentially including maintenance, repair, logistics, and operational support for naval vessels. These services are critical for maintaining fleet readiness and ensuring the Navy can execute its missions effectively, covering everything from routine upkeep to specialized technical assistance.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for these services?
The main risk with a Cost Plus Fixed Fee (CPFF) contract is that the government pays the actual costs incurred by the contractor plus a predetermined fixed fee. This can incentivize contractors to incur higher costs, as their fee remains constant. Effective oversight and detailed cost auditing are essential to mitigate the risk of cost overruns and ensure value for taxpayer money.
How does the 'All Other Professional, Scientific, and Technical Services' classification impact the assessment of value and effectiveness?
This broad classification makes it challenging to benchmark against specific industry standards or similar contracts without more granular detail. While it indicates specialized services are being procured, the lack of specificity requires a deeper dive into the contract's statement of work to truly assess value for money and the effectiveness of the services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0016722R0008
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 203 W 1ST ST, NEW ALBANY, IN, 47150
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,598,813
Exercised Options: $21,327,455
Current Obligation: $18,338,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-09
Current End Date: 2026-05-09
Potential End Date: 2027-05-09 00:00:00
Last Modified: 2025-12-19
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