Navy awards $21.6M contract for USNS Guam maintenance, with Seaward Services Inc. winning through full and open competition

Contract Overview

Contract Amount: $21,608,819 ($21.6M)

Contractor: Seaward Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $59.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF THE USNS GUAM.

Place of Performance

Location: NEW ALBANY, FLOYD County, INDIANA, 47150

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SEAWARD SERVICES, INC. for work described as: OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF THE USNS GUAM. Key points: 1. Contract value appears reasonable for specialized vessel maintenance services. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low given the fixed-price contract type and defined period of performance. 4. Performance context involves essential operational support for a naval asset. 5. Sector positioning is within the maritime logistics and defense support industry.

Value Assessment

Rating: good

The contract value of $21.6 million for a one-year period seems aligned with industry standards for maintaining a vessel like the USNS Guam. Benchmarking against similar contracts for fleet support and maintenance would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, assuming the scope of work is well-defined.

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 bids. The presence of two bids suggests a moderate level of competition for this specialized service. A higher number of bidders would typically lead to more aggressive pricing and potentially better value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

The U.S. Navy benefits from the continued operational readiness of the USNS Guam. Services include essential maintenance and repair to ensure the vessel's functionality. Geographic impact is primarily focused on the operational areas of the USNS Guam. Workforce implications include employment for skilled maritime technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm fixed-price contract type helps manage cost certainty for the government.
Defined period of performance (one year) limits long-term financial exposure.
Contractor is Seaward Services, Inc., a known entity in maritime services.

Sector Analysis

This contract falls within the maritime services sector, specifically focusing on the operation and maintenance of government-owned, contractor-operated (GOCO) vessels. The market for such specialized services is relatively niche, involving companies with specific expertise in naval ship maintenance and logistics. Comparable spending benchmarks would involve other contracts for vessel upkeep and readiness within the Department of Defense.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if Seaward Services, Inc. chooses to engage them. Without specific subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy, ensuring adherence to contract terms and performance standards. Accountability measures are embedded in the contract's performance requirements and payment terms. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

Military Sealift Command Vessel Maintenance Contracts
Naval Ship Repair and Maintenance
Defense Logistics Agency Support Contracts
Maritime Transportation Services

Risk Flags

Limited number of bidders may reduce competitive pressure on pricing.
Potential for contractor performance issues requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SEAWARD SERVICES, INC.. OPERATION AND MAINTENANCE SERVICES IN SUPPORT OF THE USNS 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 $21.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the track record of Seaward Services, Inc. in performing similar vessel maintenance contracts for the U.S. Navy?

Seaward Services, Inc. has a history of performing maritime services, including vessel maintenance and repair. While specific details on past performance for the USNS Guam or similar high-value naval assets require deeper investigation into contract databases and performance reviews, their presence in this sector suggests experience. A thorough review would involve examining past contract awards, any reported performance issues or commendations, and their overall financial stability. Understanding their specific capabilities in areas like propulsion, hull integrity, and auxiliary systems relevant to the USNS Guam is crucial for assessing their suitability and the potential risks associated with this award.

How does the awarded amount compare to the estimated cost or previous maintenance contracts for the USNS Guam?

The awarded amount of $21.6 million for a one-year period needs to be contextualized against the estimated cost and any historical spending for the USNS Guam's maintenance. Without access to the government's cost estimates or prior contract values for this specific vessel, a direct comparison is difficult. However, the firm fixed-price nature of the contract suggests the government aimed for cost certainty. If previous maintenance periods were significantly shorter or longer, or if the scope of work varied substantially, direct dollar-for-dollar comparisons might be misleading. Analyzing the scope of work in detail against industry standards for similar vessel classes would be the next step in assessing value.

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

The primary risks for this contract revolve around potential performance deficiencies by the contractor, unforeseen technical issues with the vessel, and scope creep. Mitigation strategies include the firm fixed-price contract type, which shifts cost risk to the contractor, and the defined period of performance limiting long-term exposure. The Department of the Navy's oversight through a COR is critical for monitoring performance and ensuring compliance with technical specifications. Additionally, the requirement for Seaward Services, Inc. to possess specific certifications and maintain qualified personnel helps mitigate risks related to technical expertise. The competitive bidding process itself can also reduce risk by selecting a contractor with a demonstrated capability.

What is the expected effectiveness of this contract in ensuring the operational readiness of the USNS Guam?

This contract is expected to be highly effective in ensuring the operational readiness of the USNS Guam, provided Seaward Services, Inc. performs according to the contract specifications. The services procured are directly aimed at maintaining the vessel's systems and structural integrity, which are fundamental to its operational capability. The firm fixed-price structure incentivizes the contractor to complete the work efficiently. The effectiveness will ultimately depend on the quality of the maintenance performed, the timeliness of repairs, and the contractor's ability to address any emergent issues promptly throughout the contract period.

How does this contract's competition level (2 bidders) potentially impact pricing and value for the taxpayer?

A competition level with only two bidders, as indicated for this contract, suggests a moderate rather than robust competitive environment. While competition is present, it may not be sufficient to drive prices down to the lowest possible level achievable in a market with numerous potential bidders. Taxpayers may therefore not be receiving the maximum possible value compared to a scenario with more aggressive bidding. However, the full and open competition framework ensures that at least two qualified entities vied for the contract, providing a baseline for price discovery. The specific pricing strategy and negotiation outcomes would determine the ultimate value realized.

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: N3220523R4119

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 203 W 1ST ST STE A, 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: $58,827,807

Exercised Options: $21,608,819

Current Obligation: $21,608,819

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline