DoD Awards $9.58M Dry Cargo Charter to Waterman Transport Inc. for Deep Sea Freight
Contract Overview
Contract Amount: $9,585,259 ($9.6M)
Contractor: Waterman Transport Inc
Awarding Agency: Department of Defense
Start Date: 2025-12-10
End Date: 2026-03-31
Contract Duration: 111 days
Daily Burn Rate: $86.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: 100-DAY DRY CARGO TIME CHARTER
Place of Performance
Location: MOBILE, MOBILE County, ALABAMA, 36602
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $9.6 million to WATERMAN TRANSPORT INC for work described as: 100-DAY DRY CARGO TIME CHARTER Key points: 1. Contract awarded to Waterman Transport Inc. for $9.58 million. 2. Service involves deep sea freight transportation. 3. Full and open competition was utilized. 4. Contract duration is 111 days. 5. The award is a definitive contract with a firm fixed price.
Value Assessment
Rating: good
The awarded price of $9.58 million for a 111-day charter appears reasonable given the nature of deep sea freight transportation. Benchmarking against similar time charters would provide a more precise assessment.
Cost Per Unit: $86,354 per day
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages lower bids and ensures fair market value is obtained.
Public Impact
Ensures critical supply chain operations for the Department of Defense. Supports maritime transportation capabilities for national security. Provides essential services for moving cargo globally.
Waste & Efficiency Indicators
Waste Risk Score: 86 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed price contract
- Clear service description
Sector Analysis
This contract falls under the transportation sector, specifically deep sea freight. Spending in this area is crucial for military logistics and global reach. Benchmarks for similar charters vary widely based on vessel type, duration, and market conditions.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the nature of the service favors larger entities.
Oversight & Accountability
The award is a definitive contract, suggesting it has undergone standard procurement processes. Oversight would involve monitoring performance against the contract terms and ensuring timely delivery of services.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for price volatility in future charter renewals.
- Dependence on a single provider for critical freight services.
- Geopolitical risks impacting global shipping routes.
- Fluctuations in fuel costs affecting operational expenses.
Tags
deep-sea-freight-transportation, department-of-defense, al, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.6 million to WATERMAN TRANSPORT INC. 100-DAY DRY CARGO TIME CHARTER
Who is the contractor on this award?
The obligated recipient is WATERMAN TRANSPORT 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 $9.6 million.
What is the period of performance?
Start: 2025-12-10. End: 2026-03-31.
What is the historical pricing trend for similar deep sea cargo time charters awarded by the DoD?
Historical pricing trends for similar deep sea cargo time charters can fluctuate significantly based on global demand for shipping, fuel costs, geopolitical events, and vessel availability. Analyzing past DoD awards for comparable charters over the last 3-5 years would reveal average daily rates, identify any seasonal patterns, and highlight outliers that might warrant further investigation into specific market conditions or contract terms.
What are the potential risks associated with relying on a single vendor for deep sea freight transportation over an extended period?
Relying on a single vendor for extended deep sea freight transportation can introduce risks such as price escalation beyond market rates, reduced service quality due to lack of competition, and potential disruptions if the vendor faces operational issues or financial instability. While this contract is for a defined period, dependence on one provider can limit flexibility and bargaining power for future needs.
How effectively does this contract support the DoD's strategic objectives for global logistics and supply chain resilience?
This contract directly supports the DoD's strategic objectives by securing essential deep sea freight capacity, crucial for maintaining global logistics and supply chain resilience. The firm fixed price and full and open competition suggest an effort to achieve cost-effectiveness and reliable service. However, the overall effectiveness hinges on the vendor's performance and the alignment of this charter with broader strategic deployment needs.
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: N3220526R6009
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2 S WATER ST, MOBILE, AL, 36602
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,585,259
Exercised Options: $9,585,259
Current Obligation: $9,585,259
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-10
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-10
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