DoD awards $912M for LMSR vessel ops & maintenance to Patriot Contract Services, LLC

Contract Overview

Contract Amount: $912,308,342 ($912.3M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $499.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N105B/PM3 AND PM5/ CREATED BY PAVELCHAK ON BEHALF OF WOOD, JAMES/ CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF EIGHT GOVERNMENT-OWNED LARGE, MEDIUM-SPEED, ROLL-ON, ROLL-OFF (LMSR) VESSELS.

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $912.3 million to PATRIOT CONTRACT SERVICES, LLC for work described as: N105B/PM3 AND PM5/ CREATED BY PAVELCHAK ON BEHALF OF WOOD, JAMES/ CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF EIGHT GOVERNMENT-OWNED LARGE, MEDIUM-SPEED, ROLL-ON, ROLL-OFF (LMSR) VESSELS. Key points: 1. Contract value represents significant investment in maintaining critical sealift capabilities. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. Contract duration of five years allows for consistent operational support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award is for operation and maintenance of eight large, medium-speed, roll-on/roll-off vessels. 6. Geographic focus on California for contract performance.

Value Assessment

Rating: good

The contract value of $912.3 million over five years for operating and maintaining eight LMSR vessels appears reasonable given the specialized nature of the assets and services required. Benchmarking against similar contracts for large vessel operations and maintenance is challenging due to the unique LMSR class. However, the firm-fixed-price structure incentivizes contractor efficiency. The contractor's bid of $499,895 for a specific task order (BR) suggests a potentially competitive pricing approach within the larger contract framework.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of six bidders (NO: 6) suggests a healthy level of competition for this specialized service. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive bidding process that drives down costs.

Public Impact

The U.S. Department of the Navy benefits from the continued operational readiness of its strategic sealift assets. Services delivered include the operation and maintenance of eight Government-owned Large, Medium-Speed, Roll-on/Roll-off (LMSR) vessels. Geographic impact is primarily centered around operations and maintenance activities likely based in or supporting California. Workforce implications include employment opportunities for skilled mariners, engineers, and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise on aging vessels.
Dependence on a single contractor for critical sealift capabilities could pose a risk if performance issues emerge.
Ensuring consistent adherence to maintenance schedules and operational readiness across all eight vessels requires diligent oversight.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market, potentially leading to better value.
Long-term contract (5 years) provides stability for planning and operations.
Contractor's experience in vessel operations and maintenance is a positive indicator.

Sector Analysis

The contract falls within the Defense sector, specifically related to military sealift and transportation. The market for operating and maintaining specialized government vessels like LMSRs is niche, with a limited number of qualified contractors. The Department of Defense relies heavily on such contracts to ensure the availability of strategic assets for global deployment. Comparable spending benchmarks are difficult to establish due to the unique nature of LMSR vessels.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The scale and specialized nature of LMSR vessel operations and maintenance may limit opportunities for broad small business participation, though specific technical services could be subcontracted.

Oversight & Accountability

Oversight is likely managed by the Department of the Navy's logistics and maritime commands. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Sealift Command Operations
Strategic Sealift Capability
Government Vessel Maintenance Contracts
Maritime Transportation Services
Defense Logistics Agency Contracts

Risk Flags

Contract Duration
Contract Value
Contract Type
Competition Level
Agency
Service Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $912.3 million to PATRIOT CONTRACT SERVICES, LLC. N105B/PM3 AND PM5/ CREATED BY PAVELCHAK ON BEHALF OF WOOD, JAMES/ CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF EIGHT GOVERNMENT-OWNED LARGE, MEDIUM-SPEED, ROLL-ON, ROLL-OFF (LMSR) VESSELS.

Who is the contractor on this award?

The obligated recipient is PATRIOT CONTRACT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $912.3 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the historical spending pattern for the operation and maintenance of LMSR vessels?

Historical spending data for the operation and maintenance of LMSR vessels is not directly available in the provided snippet. However, the current award of $912.3 million over five years suggests a significant and consistent investment in this capability. Previous contracts for similar services would likely have been awarded by the Department of the Navy's Military Sealift Command. Analyzing past contract values, durations, and contractor performance would provide a clearer picture of historical spending trends and potential increases or decreases in investment over time. Factors such as vessel age, operational tempo, and geopolitical requirements influence these spending patterns.

How does Patriot Contract Services, LLC's track record compare for similar maritime contracts?

Information regarding Patriot Contract Services, LLC's specific track record for similar maritime contracts is not detailed in the provided data. However, being awarded a contract of this magnitude by the Department of the Navy suggests they possess the necessary qualifications, experience, and financial stability to manage complex vessel operations and maintenance. A comprehensive assessment would require reviewing their past performance evaluations on government contracts, including any awards, penalties, or significant issues encountered. Their ability to secure this full and open competition award indicates a competitive standing among industry peers.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract involving the operation and maintenance of LMSR vessels, typical KPIs would likely include vessel readiness rates, response times for maintenance requests, fuel efficiency, adherence to safety and environmental regulations, and successful completion of required voyages or operational cycles. Performance is generally measured through regular reporting by the contractor, government inspections, and potentially through user feedback from units utilizing the vessels. The firm-fixed-price nature of the contract implies that meeting these performance standards is crucial for the contractor to achieve profitability.

What is the risk assessment associated with the contractor's ability to perform under this contract?

The primary risks associated with the contractor's performance revolve around the potential for unforeseen maintenance challenges on aging LMSR vessels, ensuring consistent operational readiness across all eight ships, and managing costs effectively under a firm-fixed-price agreement. Patriot Contract Services, LLC's track record, financial health, and technical expertise are critical factors in mitigating these risks. The Department of the Navy's oversight and the competitive nature of the award suggest that these risks have been assessed and deemed manageable. However, continuous monitoring of performance and proactive risk management by both the contractor and the government are essential.

How does the $912.3 million contract value compare to the total budget allocated for strategic sealift by the Department of Defense?

The $912.3 million contract value represents a substantial portion of the budget allocated for strategic sealift, specifically for the operation and maintenance of eight LMSR vessels over a five-year period. To provide a comparative analysis, one would need to access the Department of Defense's overall budget for sealift capabilities, including procurement, maintenance, and operational costs for all its sealift assets. This single contract highlights the significant financial commitment required to maintain these critical assets. Without the broader DoD sealift budget figures, it's difficult to quantify its exact proportion, but it underscores the importance and cost associated with sustaining this strategic resource.

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

Solicitation ID: N3220519R3009

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1320 WILLOW PASS RD STE 485, CONCORD, CA, 94520

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $915,039,725

Exercised Options: $915,039,725

Current Obligation: $912,308,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline