Navy Awards $6.16M for 106-Day Tanker Charter to Crowley STENA Marine Solutions

Contract Overview

Contract Amount: $6,161,445 ($6.2M)

Contractor: Crowleystena Marine Solutions

Awarding Agency: Department of Defense

Start Date: 2025-08-21

End Date: 2025-12-05

Contract Duration: 106 days

Daily Burn Rate: $58.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 60-DAY TANKER TIME CHARTER; FAR EAST

Plain-Language Summary

Department of Defense obligated $6.2 million to CROWLEYSTENA MARINE SOLUTIONS for work described as: 60-DAY TANKER TIME CHARTER; FAR EAST Key points: 1. Contract awarded for 106-day tanker time charter in the Far East. 2. Crowley STENA Marine Solutions secured the $6.16M contract. 3. The award falls under the Department of Defense, specifically the Department of the Navy. 4. The service is Deep Sea Freight Transportation, classified under NAICS 483111.

Value Assessment

Rating: good

The contract value of $6.16M for a 106-day charter appears reasonable given the duration and service type. Benchmarking against similar long-term tanker charters would provide a more precise assessment.

Cost Per Unit: $58,127 per day

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive award process suggests taxpayers are likely receiving fair value for the services rendered.

Public Impact

Ensures critical naval supply chain operations in the Far East. Supports Department of the Navy's logistical requirements for fuel transport. Contributes to regional maritime security and operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive award process
Clear service requirement
Defined contract duration

Sector Analysis

The transportation sector, particularly maritime freight, is essential for global logistics and defense operations. Spending benchmarks for tanker charters vary significantly based on vessel size, duration, and operational region.

Small Business Impact

This award was not specifically set aside for small businesses, and the prime contractor is Crowley STENA Marine Solutions. Further analysis would be needed to determine small business participation in the subcontracting.

Oversight & Accountability

The award was made via a Purchase Order by the Department of the Navy, indicating adherence to procurement regulations. Oversight would focus on performance and delivery against the contract terms.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential geopolitical risks in the Far East region.
Long charter duration increases exposure to operational disruptions.
Dependence on a single contractor for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to CROWLEYSTENA MARINE SOLUTIONS. 60-DAY TANKER TIME CHARTER; FAR EAST

Who is the contractor on this award?

The obligated recipient is CROWLEYSTENA MARINE SOLUTIONS.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2025-08-21. End: 2025-12-05.

What is the historical cost trend for similar tanker charter services in the Far East?

Historical cost data for similar tanker charter services in the Far East is crucial for a comprehensive value assessment. Without this data, it's difficult to definitively state if the $58,127 per day rate is optimal. Market fluctuations, vessel specifications, and geopolitical factors can significantly influence pricing, making trend analysis essential for identifying potential cost savings or overpayments.

What are the specific risks associated with a 106-day tanker charter in the Far East?

Risks include potential geopolitical instability in the region, maritime security threats (piracy), environmental hazards (weather, spills), and operational disruptions. The long duration increases exposure to these factors. The contract's firm fixed-price nature shifts some cost overrun risk to the contractor, but performance failures could still impact Navy operations.

How effectively does this charter support the Navy's long-term strategic objectives in the Indo-Pacific?

This charter directly supports the Navy's logistical and operational readiness in the Indo-Pacific by ensuring reliable fuel transport. Its effectiveness is tied to the strategic importance of the Far East region for naval presence and power projection. The 106-day duration suggests a need for sustained logistical support, aligning with ongoing strategic commitments.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N3220525R6033

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,161,445

Exercised Options: $6,161,445

Current Obligation: $6,161,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline