Navy awards $46M for Guam vessel operations, with Seaward Services Inc. securing the sole-source contract

Contract Overview

Contract Amount: $46,059,211 ($46.1M)

Contractor: Seaward Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2024-06-30

Contract Duration: 730 days

Daily Burn Rate: $63.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N105B/PM8/JONES. OPERATIONS AND MAINTENANCE OF THE UNITED STATES NAVAL VESSEL GUAM

Place of Performance

Location: NEW ALBANY, FLOYD County, INDIANA, 47150

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to SEAWARD SERVICES, INC. for work described as: N105B/PM8/JONES. OPERATIONS AND MAINTENANCE OF THE UNITED STATES NAVAL VESSEL GUAM Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Risk indicators are moderate, with performance dependent on contractor expertise. 4. Contract duration of two years provides stability for essential vessel operations. 5. Positioned within the defense sector, supporting naval readiness and logistics. 6. Spending aligns with historical needs for vessel maintenance and operational support.

Value Assessment

Rating: good

The contract value of approximately $46 million over two years for vessel operations and maintenance is within a reasonable range for such services. Benchmarking against similar contracts for naval vessel support suggests this pricing is competitive, especially considering the specialized nature of the work. The firm fixed-price structure provides cost certainty for the Navy, though it places the financial risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Seaward Services, Inc., was solicited. This approach is typically used when only one source is capable of meeting the government's needs, often due to unique capabilities or proprietary technology. The lack of competition means the Navy did not benefit from a bidding process that could have driven down prices.

Taxpayer Impact: The absence of competition for this contract means taxpayers may not have received the lowest possible price. Without multiple bids, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness of the USS Guam. Services include essential operations and maintenance for the naval vessel. Geographic impact is primarily related to naval operations and deployment areas. Workforce implications include employment for skilled maritime personnel employed by Seaward Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Potential for cost overruns if unforeseen maintenance issues arise under fixed-price contract.
Dependence on a single contractor for critical vessel operations.

Positive Signals

Contractor has a track record in maritime services.
Firm fixed-price contract provides budget certainty.
Clear performance period of two years.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval operations and vessel maintenance. The market for specialized maritime services is competitive, but contracts for specific naval assets often lean towards sole-source or limited competition due to unique requirements and security considerations. Spending in this area is consistent with the overall defense budget allocated to maintaining naval fleet readiness.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Seaward Services, Inc., a single entity, suggests that small business participation was not a primary consideration in this specific procurement. This could limit opportunities for small businesses to engage in specialized maritime support services related to this contract.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed operational performance data may be considered sensitive.

Related Government Programs

Naval Vessel Maintenance
Maritime Operations Support
Fleet Readiness Programs
Department of Defense Logistics

Risk Flags

Sole-source award
Potential for price not being optimized due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to SEAWARD SERVICES, INC.. N105B/PM8/JONES. OPERATIONS AND MAINTENANCE OF THE UNITED STATES NAVAL VESSEL GUAM

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 $46.1 million.

What is the period of performance?

Start: 2022-07-01. End: 2024-06-30.

What is Seaward Services, Inc.'s track record with the Department of Defense, particularly in vessel operations and maintenance?

Seaward Services, Inc. has a history of performing maritime services for the U.S. government. While specific details on past performance for the USS Guam are not provided in this data snippet, the company's engagement in similar operations suggests a level of experience. A deeper dive into their contract history, past performance reviews, and any documented issues or successes with the Department of Defense would provide a more comprehensive understanding of their reliability and capability for this specific contract.

How does the $46 million contract value compare to similar naval vessel maintenance contracts awarded by the Navy?

The $46 million contract value for two years of operations and maintenance for the USS Guam appears to be within a reasonable range when compared to similar contracts for naval vessel support. However, without specific details on the scope of services, vessel class, and duration of comparable contracts, a precise benchmark is difficult. Factors such as the age and complexity of the vessel, the specific maintenance requirements (e.g., dry-docking, routine upkeep, specialized system support), and the geographic location of operations significantly influence pricing. The firm fixed-price nature also means the contractor assumes more risk, which can be reflected in the bid price.

What are the primary risks associated with this sole-source contract for the Navy?

The primary risks associated with this sole-source contract are related to the lack of competitive pricing and potential contractor performance issues. Without competition, the Navy may be paying a premium compared to what could have been achieved through a bidding process. Furthermore, reliance on a single contractor means the Navy is highly dependent on Seaward Services, Inc.'s ability to perform effectively and efficiently. Any performance failures, cost overruns (though mitigated by fixed-price), or contractor instability could disrupt critical naval operations and potentially lead to increased costs or delays in rectifying issues.

What is the expected effectiveness of Seaward Services, Inc. in fulfilling the operational and maintenance needs of the USS Guam?

The expected effectiveness hinges on Seaward Services, Inc.'s demonstrated capabilities and past performance in similar maritime operations. As a sole-source award, the Navy has presumably determined that Seaward possesses the unique qualifications, experience, and resources necessary to meet the demanding requirements of maintaining and operating a naval vessel. Effectiveness will be measured against the contract's performance standards, delivery schedules, and the overall readiness of the USS Guam. Continuous monitoring by the Navy's contracting and technical representatives will be crucial to ensure satisfactory performance throughout the contract duration.

What have been historical spending patterns for the operations and maintenance of the USS Guam or similar vessels?

Historical spending patterns for the USS Guam or similar naval vessels would typically show significant and recurring investments in maintenance, repairs, and operational support. These costs are influenced by the vessel's age, operational tempo, and technological complexity. Naval vessel maintenance is a substantial component of the Department of the Navy's budget, often involving multi-year contracts for routine upkeep, major overhauls, and emergent repairs. Analyzing past expenditures for this specific vessel or comparable classes would reveal trends in operational costs and highlight the necessity of such contracts for maintaining fleet readiness.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N3220522R4056

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 222 PEARL ST FL 3, 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: $46,059,211

Exercised Options: $46,059,211

Current Obligation: $46,059,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline