DoD's $11.2M deep sea freight contract awarded to Waterman Transport Inc. for 63-day drytime

Contract Overview

Contract Amount: $11,219,137 ($11.2M)

Contractor: Waterman Transport Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-15

End Date: 2026-03-17

Contract Duration: 92 days

Daily Burn Rate: $121.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 63-DAY DRYTIME; KRF DEPLOY AND REDEPLOY

Place of Performance

Location: MOBILE, MOBILE County, ALABAMA, 36602

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to WATERMAN TRANSPORT INC for work described as: 63-DAY DRYTIME; KRF DEPLOY AND REDEPLOY Key points: 1. Contract value of $11.2 million for a 92-day duration. 2. Awarded under full and open competition with 6 bidders. 3. Risk indicators include a short performance period and fixed-price structure. 4. Performance context involves deep sea freight transportation services. 5. Sector positioning within Defense, specifically Navy logistics. 6. Potential for cost savings due to competitive bidding.

Value Assessment

Rating: good

The contract value of $11.2 million for a 92-day period, averaging approximately $121,947 per day, appears reasonable given the specialized nature of deep sea freight transportation. Benchmarking against similar contracts for specialized maritime logistics would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has transferred most of the cost risk to the contractor, which can be beneficial if the contractor manages costs effectively.

Cost Per Unit: Approximately $121,947 per day.

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. With six bidders participating, the competition level suggests a healthy market for these specialized services. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured a fair market rate was achieved for the deep sea freight services.

Public Impact

The Department of the Navy benefits from reliable deep sea freight transportation. Services include deployment and redeployment, crucial for military operations. Geographic impact is likely global, supporting naval deployments. Workforce implications include maritime professionals and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in a complex maritime operation.
Reliance on a single contractor for critical freight services.

Positive Signals

Awarded through full and open competition, indicating market availability.
Firm fixed-price contract shifts cost risk to the contractor.
Clear definition of services (drytime, deploy/redeploy).

Sector Analysis

The defense logistics sector relies heavily on specialized transportation services, including deep sea freight, to support global operations. This contract fits within the broader market for maritime shipping and logistics, which is a significant global industry. Comparable spending benchmarks would involve analyzing other large-scale military sealift or specialized cargo contracts within the Department of Defense.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of deep sea freight transportation, it is possible that larger, more established companies dominate this market. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of accountability for cost control by the contractor. Transparency is facilitated by the public award data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Sealift Command Contracts
Department of Defense Transportation Services
Global Freight Forwarding Contracts

Risk Flags

Potential for cost overruns impacting contractor profitability.
Risk of service quality degradation if contractor faces financial pressure.
Dependence on a single contractor for critical logistical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to WATERMAN TRANSPORT INC. 63-DAY DRYTIME; KRF DEPLOY AND REDEPLOY

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 $11.2 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-03-17.

What is the historical spending pattern for deep sea freight transportation by the Department of the Navy?

Analyzing historical spending for deep sea freight by the Department of the Navy requires access to detailed procurement databases. However, general trends indicate a consistent need for such services to support global military deployments and logistical requirements. Spending can fluctuate based on geopolitical events, operational tempo, and specific mission needs. Contracts like this one, often awarded through competitive processes, represent a portion of the overall defense transportation budget. Understanding the historical average cost per day or per voyage for similar services would provide a crucial benchmark for assessing the current contract's value. Without specific historical data for this exact service type, it's challenging to pinpoint precise patterns, but the overall defense budget allocation for transportation remains substantial.

How does the daily rate of this contract compare to industry benchmarks for similar specialized freight services?

The daily rate for this contract is approximately $121,947. Benchmarking this against industry standards for specialized deep sea freight, particularly those involving military-grade requirements or specific drytime provisions, is essential. General commercial shipping rates can vary widely based on vessel type, cargo, route, and market conditions. For specialized military logistics, rates may be higher due to stringent operational requirements, security protocols, and rapid deployment needs. A direct comparison would ideally involve data from similar government contracts or specialized commercial charters. Given the 'drytime' specification, which implies vessel availability for specific periods, this rate needs to be evaluated against the market for chartered vessels with such service level agreements. Without access to proprietary industry data or a broader set of comparable government contracts, a precise benchmark is difficult, but the rate appears within a plausible range for specialized maritime services.

What are the primary risks associated with a firm fixed-price contract for deep sea freight?

The primary risk associated with a firm fixed-price (FFP) contract for deep sea freight is that the contractor bears the brunt of any cost overruns. If Waterman Transport Inc. encounters unforeseen operational challenges, such as extended port times, higher fuel costs than anticipated, or unexpected maintenance issues, their profit margin will be reduced, or they could incur a loss. Conversely, if they manage costs efficiently, they stand to gain a higher profit. For the government, the main risk is that the contractor might cut corners on service quality or safety to protect their profit margin, especially if the initial price was set too low due to intense competition. However, FFP contracts are generally favored for well-defined services like freight transportation because they provide cost certainty for the buyer.

What is Waterman Transport Inc.'s track record with similar government contracts?

Information regarding Waterman Transport Inc.'s specific track record with similar government contracts, particularly those involving deep sea freight and 'drytime' provisions, would typically be found in federal procurement databases like SAM.gov or through contract award histories. A thorough review would involve examining past performance evaluations, any disputes or claims filed, and the types and values of previous contracts awarded to the company. Without direct access to this detailed performance history, it's difficult to definitively assess their reliability and experience. However, being awarded a contract of this magnitude by the Department of the Navy suggests they have met the necessary qualifications and demonstrated some level of capability to secure such a bid.

How does the 63-day drytime requirement impact the contract's overall value and risk?

The 63-day drytime requirement is a critical performance metric that directly impacts the contract's value and risk. 'Drytime' typically refers to the period a vessel is available for loading, unloading, or specific operations, often excluding transit time. This specificity suggests the Navy requires the vessel's dedicated service for a substantial duration at a particular location or for a defined task. For the contractor, ensuring the vessel is available and operational for this entire period presents logistical and maintenance challenges, contributing to the overall cost. For the Navy, it guarantees the availability of a key asset for a significant period, reducing the risk of operational delays due to vessel unavailability. The value is tied to this guaranteed availability, and the risk lies in the contractor's ability to meet this stringent uptime requirement.

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: N3220525R6025

Offers Received: 6

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: $11,219,137

Exercised Options: $11,219,137

Current Obligation: $11,219,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline