Navy awards $13.4M charter for deep sea passenger transport, with one option

Contract Overview

Contract Amount: $13,422,734 ($13.4M)

Contractor: Offshore Aviation LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-27

End Date: 2026-06-09

Contract Duration: 378 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 180-DAY SPECIAL TIME CHARTER W/ ONE 180-DAY OPTION / SSV MIDPAC

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to OFFSHORE AVIATION LLC for work described as: 180-DAY SPECIAL TIME CHARTER W/ ONE 180-DAY OPTION / SSV MIDPAC Key points: 1. Contract value appears reasonable for specialized deep-sea transportation services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 378 days (including option) is standard for such services. 4. Performance risk appears moderate, given the specialized nature of the operation. 5. This contract supports naval operations in the Pacific theater. 6. The firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $13.4 million for a 378-day deep sea passenger charter seems within a reasonable range for specialized maritime services. Benchmarking against similar contracts for vessel charters of comparable size and duration would provide a more precise value assessment. The firm-fixed-price (FFP) award indicates that the pricing was determined upfront, and the government is not expected to pay more than the agreed-upon amount, assuming no scope changes. This structure is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific exclusions were made, potentially for technical or security reasons. The presence of 3 bidders suggests a degree of competition, though the exact nature of the exclusions and the number of potential bidders not selected would provide further clarity on the true level of market engagement. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing. The fact that three bids were received suggests that the market has multiple capable providers, which should have driven a competitive price.

Public Impact

Naval personnel and potentially civilian support staff will benefit from transportation services. The contract delivers essential deep-sea passenger transportation, likely for operational or logistical support. The geographic impact is centered around Hawaii (HI) and the Pacific (SSV MIDPAC). Workforce implications include employment for the vessel crew and support staff employed by Offshore Aviation LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if operational needs change significantly during the charter period.
Dependence on a single vessel for critical transportation could pose risks if unforeseen maintenance or operational issues arise.
The 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor streamlines management and accountability.
The contract duration includes an option, allowing for flexibility if continued service is needed.

Sector Analysis

The maritime transportation sector is critical for global logistics and defense operations. This contract falls within the specialized niche of deep-sea passenger and potentially cargo transport, often requiring specific vessel types and certifications. The market for such services can be concentrated, with a limited number of operators possessing the necessary capabilities and regulatory compliance. Comparable spending benchmarks would involve analyzing other government or commercial contracts for similar vessel charters, considering factors like vessel size, capacity, operational range, and duration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not explicitly detailed in the provided data. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem. However, larger contracts can sometimes create indirect opportunities for small businesses supplying goods or services to the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price structure, requiring the contractor to deliver services as specified. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Vessel Charters
Maritime Transportation Services
Deep Sea Operations Support
Pacific Fleet Logistics

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Dependence on specialized maritime services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to OFFSHORE AVIATION LLC. 180-DAY SPECIAL TIME CHARTER W/ ONE 180-DAY OPTION / SSV MIDPAC

Who is the contractor on this award?

The obligated recipient is OFFSHORE AVIATION 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 $13.4 million.

What is the period of performance?

Start: 2025-05-27. End: 2026-06-09.

What is the track record of Offshore Aviation LLC in performing similar deep-sea transportation contracts for the government?

A review of Offshore Aviation LLC's contract history would be necessary to assess their track record. Specifically, one would look for past performance on contracts involving deep-sea passenger or cargo transportation, vessel charters of similar size and type, and operations in the Pacific region. Evaluating past performance ratings, any documented issues or disputes, and the successful completion of previous government contracts would provide insight into their reliability and capability. Without access to detailed past performance information, it is difficult to definitively assess their suitability for this specific requirement beyond the fact they were awarded this contract.

How does the awarded price compare to market rates for similar deep-sea passenger charter services?

To benchmark the awarded price of approximately $13.4 million against market rates, one would need to identify comparable contracts. This involves searching for similar vessel charters (size, capacity, type), duration (378 days including option), and operational area (Pacific). Market research reports, industry publications, and databases of government contract awards can provide data points. Factors such as the specific amenities, crew size, fuel costs, and regulatory compliance requirements for deep-sea operations significantly influence pricing. A preliminary assessment suggests the price is reasonable for specialized maritime services, but a detailed comparative analysis is required for a definitive conclusion.

What are the primary risks associated with this specific contract, and how are they being mitigated?

The primary risks include operational disruptions (e.g., vessel mechanical failure, weather delays), potential cost overruns if the firm-fixed-price contract has poorly defined scope or unforeseen requirements, and contractor performance issues. Mitigation strategies typically involve robust contract surveillance by the government, clear performance standards, contingency planning by the contractor, and the firm-fixed-price structure itself, which places cost risk on the contractor. The 'exclusion of sources' in the competition also presents a potential risk if it inadvertently limited the pool of qualified bidders, potentially impacting price or innovation. The Navy likely has procedures for monitoring vessel readiness and operational performance.

What is the expected effectiveness of this contract in supporting the Navy's mission in the Pacific?

The effectiveness of this contract hinges on its ability to reliably and efficiently provide deep-sea passenger transportation. This service is crucial for deploying personnel, supporting operational readiness, and potentially facilitating logistical movements within the Pacific theater. If Offshore Aviation LLC performs as expected, the contract will directly contribute to the Navy's operational capabilities by ensuring personnel can reach necessary locations. The effectiveness will be measured by the on-time delivery of services, the condition of the vessel, and the overall support it provides to the intended mission objectives. Consistent performance without significant disruption is key.

How does the historical spending on deep-sea passenger transportation by the Department of the Navy compare to this award?

Analyzing historical spending requires access to detailed budget and contract data for the Department of the Navy specifically for deep-sea passenger transportation or similar maritime charter services. Without this data, a direct comparison is not possible. However, one could infer trends by looking at overall Navy maritime spending or specific operational budgets for the Pacific fleet. If this $13.4 million award represents a significant portion of historical annual spending on such services, it might indicate an increase in demand or a shift in strategy. Conversely, if it's a routine expenditure, it suggests consistent operational needs.

What are the implications of the 'Full and Open Competition After Exclusion of Sources' clause on cost and availability?

This clause indicates that the competition was intended to be broad, but certain sources were excluded. The implications for cost and availability depend heavily on the justification for these exclusions. If the exclusions were based on necessary security clearances, specialized certifications, or unique technical capabilities that only a few firms possess, then the competition might have been limited, potentially leading to higher costs than a truly open competition. However, if the exclusions were minor or based on administrative reasons, the impact might be negligible. The fact that three bidders participated suggests that sufficient competition existed despite the exclusions, likely keeping costs competitive.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Passenger 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: N3220525R4069

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45353 SAINT GEORGES AVE, PINEY POINT, MD, 20674

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,422,734

Exercised Options: $13,422,734

Current Obligation: $13,422,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline