Department of the Navy awards $46M firm-fixed-price contract for deep sea freight transportation services

Contract Overview

Contract Amount: $46,013,099 ($46.0M)

Contractor: Omni2max, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-17

End Date: 2026-09-06

Contract Duration: 1,938 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: N103B-C. TOMLIN-PM4- AWARD CONTRACT N32205-21-C-4020 OCEAN VALOR TO OMNI2MAX, INC.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to OMNI2MAX, INC. for work described as: N103B-C. TOMLIN-PM4- AWARD CONTRACT N32205-21-C-4020 OCEAN VALOR TO OMNI2MAX, INC. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5 years indicates a long-term need for these services. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially stabilizing government expenditure. 4. The contractor, OMNI2MAX, INC., is a new entity for this specific contract award. 5. The North American Industry Classification System (NAICS) code 483111 points to deep sea freight transportation. 6. The contract is not set aside for small businesses, implying larger firms were likely participants.

Value Assessment

Rating: fair

The contract value of $46,013,099.17 over nearly five years requires careful benchmarking against similar deep sea freight transportation contracts. Without specific performance metrics or detailed cost breakdowns, assessing the value for money is challenging. The firm-fixed-price nature provides cost certainty, but the absence of competitive pricing data makes it difficult to determine if the price is optimal. Further analysis would involve comparing the per-mile or per-ton rates to industry standards and historical Navy contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While multiple bidders are positive, the exact number (3) needs to be considered in the context of the market size and complexity of the service. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of securing the best value. The fact that three bids were received suggests a competitive environment that likely resulted in a more favorable price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring deep sea freight transportation. The services delivered include the movement of goods and materials via deep sea freight. The geographic impact is likely global, given the nature of deep sea freight transportation. Workforce implications may include employment opportunities for mariners, logistics personnel, and support staff within OMNI2MAX, INC. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen operational challenges in deep sea freight.
Dependence on a single contractor for critical transportation services could pose a risk if performance issues arise.
Limited visibility into the contractor's cost structure due to the firm-fixed-price nature of the award.

Positive Signals

Firm-fixed-price contract provides budget certainty for the Department of the Navy.
Full and open competition suggests a robust bidding process aimed at achieving best value.
The contract duration allows for stable, long-term planning of transportation needs.

Sector Analysis

The deep sea freight transportation sector is a critical component of global logistics and national defense. This contract falls under the transportation services industry, specifically focusing on maritime shipping. The market is characterized by large, specialized vessels and complex logistical operations. Comparable spending benchmarks would involve analyzing other large-scale maritime transport contracts awarded by government agencies, considering factors like vessel type, cargo capacity, and route.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the competition was open to all responsible sources, including large businesses. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless OMNI2MAX, INC. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Sealift Command Contracts
Department of Transportation Maritime Administration Contracts
Ocean Transportation Services
Deep Sea Shipping Contracts

Risk Flags

Contract Awarded to New Entity
Potential for Cost Overruns (Contractor Side)
Dependence on Single Contractor
Limited Small Business Subcontracting Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to OMNI2MAX, INC.. N103B-C. TOMLIN-PM4- AWARD CONTRACT N32205-21-C-4020 OCEAN VALOR TO OMNI2MAX, INC.

Who is the contractor on this award?

The obligated recipient is OMNI2MAX, 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 $46.0 million.

What is the period of performance?

Start: 2021-05-17. End: 2026-09-06.

What is the track record of OMNI2MAX, INC. with federal contracts, particularly within the Department of Defense?

Based on the provided data, OMNI2MAX, INC. is the awardee of this specific contract (N32205-21-C-4020). Further investigation into federal procurement databases such as FPDS or SAM.gov would be necessary to ascertain the company's complete federal contracting history. This would include examining past awards, performance reviews, and any history of contract modifications or disputes. Without this broader context, it is difficult to assess their overall track record and reliability for fulfilling this significant deep sea freight transportation requirement.

How does the awarded price of $46,013,099.17 compare to similar deep sea freight transportation contracts awarded by the Navy or other DoD components?

To benchmark the value, a comparative analysis of similar deep sea freight transportation contracts is required. This would involve identifying contracts with comparable durations (approximately 5 years), vessel types, cargo volumes, and operational areas. Key metrics for comparison would include the average cost per day, per mile, or per ton of cargo moved. Without access to a broader dataset of comparable contracts, it is challenging to definitively state whether this $46M award represents excellent, good, or fair value. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee the lowest possible market price.

What are the primary risks associated with this firm-fixed-price contract for deep sea freight transportation?

The primary risks associated with this firm-fixed-price contract revolve around potential cost overruns for the contractor and performance issues. If OMNI2MAX, INC. underestimated operational costs, fuel prices, or encountered unforeseen logistical challenges, they might struggle to maintain profitability, potentially impacting service quality or leading to contract disputes. For the government, the risk lies in the contractor's ability to consistently meet performance requirements. While the fixed price offers budget certainty, it doesn't eliminate the risk of subpar service delivery if the contractor faces financial or operational difficulties.

How effective is the 'full and open competition' strategy in ensuring competitive pricing for deep sea freight services?

The 'full and open competition' strategy is generally considered the most effective method for ensuring competitive pricing in federal contracting. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple, competitive proposals. In this case, with 3 bidders, the strategy appears to have generated some level of competition. However, the true effectiveness in achieving optimal pricing depends on the number of bidders relative to the market size and the specific requirements of the service. A higher number of bidders typically correlates with more aggressive pricing.

What is the historical spending pattern for deep sea freight transportation services by the Department of the Navy?

Analyzing historical spending patterns for deep sea freight transportation by the Department of the Navy is crucial for context. This involves examining aggregate spending data over several fiscal years, identifying major contracts, and noting trends in contract values, durations, and award types. Understanding past spending helps in assessing whether the current $46M award is consistent with historical levels, represents an increase or decrease, and whether it aligns with the overall strategic needs of the Navy for maritime logistics. Without specific historical data, it's difficult to place this award within a broader financial context.

What are the implications of the contract duration (ending 2026-09-06) on long-term strategic planning for the Navy's logistics?

The contract duration, extending to September 6, 2026, provides the Department of the Navy with a stable period for its deep sea freight transportation needs. This allows for predictable resource allocation and reduces the administrative burden associated with frequent re-procurement. Strategically, it enables the Navy to integrate these services into its broader logistical planning, ensuring consistent support for operations and deployments. However, it also means that any significant shifts in logistical requirements or technological advancements in shipping during this period might not be immediately adaptable without contract modifications.

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: N3220520R4112

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7777 ALVARADO RD STE 615, LA MESA, CA, 91942

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,013,099

Exercised Options: $46,013,099

Current Obligation: $46,013,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline