DoD's $7.7M dry cargo charter contract awarded to Liberty Eagle Corporation for 122 days

Contract Overview

Contract Amount: $7,743,256 ($7.7M)

Contractor: Liberty Eagle Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-05

End Date: 2026-04-06

Contract Duration: 122 days

Daily Burn Rate: $63.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 93-DAY DRY CARGO TIME CHARTER

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to LIBERTY EAGLE CORPORATION for work described as: 93-DAY DRY CARGO TIME CHARTER Key points: 1. Value for money assessed through benchmarking against similar time charter rates. 2. Competition dynamics indicate a potentially favorable outcome for the government due to multiple bids. 3. Risk indicators include the short duration and fixed-price nature, which can limit flexibility. 4. Performance context relies on the contractor's ability to meet demanding shipping schedules. 5. Sector positioning within deep sea freight transportation is critical for logistical support.

Value Assessment

Rating: good

The contract's value of approximately $7.7 million for a 122-day period appears reasonable when considering the daily rate. Benchmarking against market rates for similar dry cargo time charters of this duration and vessel type is crucial for a definitive assessment. The firm fixed-price structure suggests that the government has locked in costs, but it also places the risk of cost overruns on the contractor.

Cost Per Unit: Approximately $63,469 per day (based on $7,743,255.8 / 122 days).

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely solicited from a limited pool of pre-qualified vendors or through a specific solicitation process designed for smaller procurements. While the data indicates 8 bids were received, the exact nature of the competition (e.g., number of bidders invited, specific solicitation method) is not fully detailed. A limited competition under SAP can still yield competitive pricing if the market is sufficiently active and the solicitation is well-executed.

Taxpayer Impact: The receipt of 8 bids under SAP suggests a degree of competition, which generally benefits taxpayers by driving down prices. However, the full extent of taxpayer savings is difficult to ascertain without knowing the number of potential bidders and the specific procurement strategy.

Public Impact

The primary beneficiaries are the Department of Defense, ensuring the availability of critical dry cargo transportation services. Services delivered include the chartering of a vessel for deep sea freight transportation, essential for military logistics and supply chain operations. The geographic impact is likely global, supporting naval operations and deployments wherever dry cargo is required. Workforce implications may include employment for the vessel's crew and associated maritime support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation if market rates increase significantly during the charter period, though mitigated by fixed-price.
Dependence on contractor's operational efficiency and vessel availability for timely delivery of goods.
Limited flexibility to change cargo requirements or destinations once the charter is underway.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Multiple bids received suggest a competitive environment, potentially leading to favorable pricing.
Contract duration aligns with specific operational needs, avoiding long-term commitments.

Sector Analysis

The contract falls within the broader maritime transportation sector, specifically focusing on dry cargo time charters. This sector is vital for global trade and military logistics, enabling the movement of bulk commodities and equipment. The market size for such charters can fluctuate based on global demand, fuel prices, and geopolitical factors. Comparable spending benchmarks would involve analyzing other government or commercial time charter contracts for similar vessel types and durations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Liberty Eagle Corporation, is likely a larger entity capable of fulfilling this type of charter service.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and logistics commands. Accountability measures are embedded in the contract terms, including performance expectations and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Sealift Command Charters
Deep Sea Freight Services
Maritime Transportation Contracts
Defense Logistics Agency (DLA) Transportation

Risk Flags

Potential for cost overruns if market rates increase significantly.
Dependence on contractor's operational performance and vessel availability.
Limited flexibility in scope changes due to fixed-price nature.
Risk of contractor default or performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to LIBERTY EAGLE CORPORATION. 93-DAY DRY CARGO TIME CHARTER

Who is the contractor on this award?

The obligated recipient is LIBERTY EAGLE CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2025-12-05. End: 2026-04-06.

What is Liberty Eagle Corporation's track record with the Department of Defense for similar charter services?

A review of Liberty Eagle Corporation's contract history with the Department of Defense would be necessary to assess their track record. This would involve examining past performance on similar dry cargo time charters, including on-time delivery rates, adherence to specifications, and any reported disputes or contract modifications. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. A history of successful, timely, and cost-effective performance on comparable contracts would indicate a lower risk for this current award. Conversely, a pattern of performance issues or cost overruns on previous similar contracts would raise concerns about Liberty Eagle Corporation's ability to meet the requirements of this new award.

How does the awarded daily rate of $63,469 compare to market benchmarks for similar dry cargo time charters?

To benchmark the daily rate of approximately $63,469, one would need to consult industry reports and market intelligence for dry cargo time charters of comparable size, age, and type (e.g., Handysize, Supramax) during the relevant charter period (late 2025 to early 2026). Factors such as vessel specifications, cargo capacity, speed, fuel consumption, and the specific trade routes or operational areas will influence market rates. If this rate is significantly below prevailing market rates, it suggests excellent value for the government. If it is at or above market rates, it warrants further investigation into the necessity of the specific vessel or the competitive landscape. The firm fixed-price nature means the government has secured this rate, but understanding its market competitiveness is key to assessing value.

What are the primary risks associated with a firm fixed-price contract for a 122-day time charter?

The primary risk for the government in a firm fixed-price (FFP) contract for a time charter is the potential for the contractor to incur higher costs than anticipated, leading to a decline in service quality or a contractor's inability to fulfill the contract if they miscalculated expenses. For the contractor, the risk lies in market fluctuations, such as unexpected increases in fuel prices, port fees, or crewing costs, which could erode profit margins or lead to losses if not adequately factored into the fixed price. While FFP provides cost certainty for the buyer, it shifts the cost-risk entirely to the seller. In this specific case, the 122-day duration is relatively short, which might mitigate some long-term market volatility risks, but short-term spikes in operational costs could still impact the contractor's performance.

What is the strategic importance of securing this specific dry cargo time charter for the Department of the Navy?

Securing this dry cargo time charter is strategically important for the Department of the Navy as it ensures the availability of essential shipping capacity for logistical support. This could involve transporting equipment, supplies, provisions, or other materiel critical for naval operations, exercises, or deployments. The ability to charter vessels on demand, rather than owning and maintaining a dedicated fleet for all potential needs, offers flexibility and cost-efficiency. This specific charter, covering a 122-day period, likely supports a defined operational requirement or a surge in logistical demand, underscoring its role in maintaining readiness and operational reach for naval forces.

How does the 'COMPETED UNDER SAP' designation impact the potential for cost savings compared to full and open competition?

Competing under Simplified Acquisition Procedures (SAP) typically involves smaller dollar thresholds and streamlined processes compared to full and open competition. While SAP is designed for efficiency, it may not always attract the widest possible range of bidders, potentially limiting the intensity of competition. However, for procurements within the SAP thresholds, it can still yield competitive pricing if the solicitation is well-crafted and disseminated to relevant vendors. The fact that 8 bids were received suggests a reasonable level of interest. Cost savings under SAP are often realized through reduced administrative burden and faster award times, but the ultimate price competitiveness depends heavily on the specific market conditions and the number of qualified vendors actively participating.

What are the implications of the contract's end date (April 6, 2026) for future logistical planning by the Department of the Navy?

The contract's end date of April 6, 2026, provides the Department of the Navy with a clear timeline for the duration of this specific charter service. This allows for precise integration into their broader logistical planning and budgeting cycles. Knowing when this charter concludes enables the Navy to anticipate future shipping needs and initiate new procurement processes well in advance, ensuring continuity of service. It also allows them to assess whether the services provided were sufficient and to plan for potential follow-on contracts or alternative solutions based on evolving operational requirements and market conditions.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 JERICHO QUADRANGLE STE 200 STE 301, JERICHO, NY, 11753

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

Financial Breakdown

Contract Ceiling: $7,743,256

Exercised Options: $7,743,256

Current Obligation: $7,743,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline