DoD awards $36.6M for shallow draft tanker services, with U.S. Marine Management, LLC securing the contract
Contract Overview
Contract Amount: $36,643,441 ($36.6M)
Contractor: U.S. Marine Management, LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-30
End Date: 2026-10-20
Contract Duration: 720 days
Daily Burn Rate: $50.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: N103B/N351B TANKERS/A.SMITH/ FE SHALLOW DRAFT TANKER #2
Plain-Language Summary
Department of Defense obligated $36.6 million to U.S. MARINE MANAGEMENT, LLC for work described as: N103B/N351B TANKERS/A.SMITH/ FE SHALLOW DRAFT TANKER #2 Key points: 1. Contract awarded to U.S. Marine Management, LLC for shallow draft tanker services. 2. The contract is valued at $36.6 million and has a duration of 720 days. 3. Competition was 'Full and Open Competition After Exclusion of Sources', indicating a specific but open process. 4. The sector is Deep Sea Freight Transportation, a critical component of logistics and defense operations.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar deep-sea freight contracts would provide further insight into pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was open, certain specific sources were initially excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The $36.6 million expenditure for essential transportation services represents a significant but necessary investment for the Department of Defense's operational capabilities.
Public Impact
Ensures critical logistical support for naval operations through specialized tanker services. Supports the Department of Defense's ability to transport necessary fuel and supplies. The contract duration of 720 days provides long-term stability for service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Firm Fixed Price contracts can shift risk to the contractor, but require careful scope definition.
Positive Signals
- Clear contract type (FFP) and defined duration.
- Competition method, while specific, aimed for openness.
Sector Analysis
The Deep Sea Freight Transportation sector is vital for global logistics and military deployment. Spending benchmarks in this area are highly dependent on vessel type, duration, and specific operational requirements.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate in the supply chain or subcontracting roles.
Oversight & Accountability
The contract is managed by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on performance, delivery, and financial accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of explicit small business participation noted.
- Need for detailed cost breakdown to fully assess value.
- Dependence on a single contractor for a critical service.
Tags
deep-sea-freight-transportation, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.6 million to U.S. MARINE MANAGEMENT, LLC. N103B/N351B TANKERS/A.SMITH/ FE SHALLOW DRAFT TANKER #2
Who is the contractor on this award?
The obligated recipient is U.S. MARINE MANAGEMENT, 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 $36.6 million.
What is the period of performance?
Start: 2024-10-30. End: 2026-10-20.
What is the specific rationale behind the 'Exclusion of Sources' in the competition process, and how did it impact the final price?
The rationale for excluding specific sources typically relates to specialized capabilities, security requirements, or past performance issues. Understanding this exclusion is crucial for assessing whether the competition truly yielded the best possible price and value for the government. Without this information, it's difficult to definitively state if the $36.6 million represents optimal value.
How does the $36.6 million cost compare to industry benchmarks for similar shallow draft tanker services over a 720-day period?
Benchmarking this $36.6 million contract against similar shallow draft tanker services requires detailed market research on vessel size, capacity, operational areas, and contract duration. If comparable contracts show significantly lower costs for similar services, it could indicate potential overpricing or a lack of competitive pressure. Conversely, if the cost aligns with or is below market rates, it suggests reasonable value.
What are the key performance indicators (KPIs) for this contract, and how will they be monitored to ensure effectiveness and taxpayer value?
Key performance indicators for this contract likely include on-time delivery of fuel/supplies, vessel operational readiness, safety compliance, and adherence to environmental regulations. The Department of the Navy's contract management team will monitor these KPIs through regular reporting, inspections, and performance reviews. Effective monitoring ensures the contractor meets obligations and that taxpayer funds are used efficiently for critical logistical support.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3220524R0001
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: A.P. Møller OG Hustru Chastine Mc-Kinney Møllers Fond TIL Almene Formaal
Address: 140 CORPORATE BLVD, NORFOLK, VA, 23502
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,226,922
Exercised Options: $36,643,441
Current Obligation: $36,643,441
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-30
Current End Date: 2026-10-20
Potential End Date: 2026-10-20 00:00:00
Last Modified: 2025-09-26
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