Navy awards $3.5M for tanker voyage charter, with 9 bids received

Contract Overview

Contract Amount: $3,502,964 ($3.5M)

Contractor: Crowleystena Marine Solutions

Awarding Agency: Department of Defense

Start Date: 2025-12-29

End Date: 2026-02-14

Contract Duration: 47 days

Daily Burn Rate: $74.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TANKER VOYAGE CHARTER

Plain-Language Summary

Department of Defense obligated $3.5 million to CROWLEYSTENA MARINE SOLUTIONS for work described as: TANKER VOYAGE CHARTER Key points: 1. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 2. A firm-fixed-price award indicates that the contractor bears the risk of cost overruns. 3. The duration of the charter is approximately 1.5 months, suggesting a short-term operational need. 4. The award amount of $3.5M for this service needs to be benchmarked against similar charters to assess value. 5. The number of bids (9) indicates a healthy level of interest from potential suppliers. 6. The contract is for deep-sea freight transportation, a critical component of military logistics.

Value Assessment

Rating: good

The award of $3.5M for a tanker voyage charter of approximately 1.5 months appears reasonable given the nature of the service. Without specific details on the vessel size, route, and cargo, a direct comparison is challenging. However, the firm-fixed-price structure suggests a predictable cost for the Navy. The benchmark of $745,310 for the base year (likely representing a portion of the total value or a comparable period) provides a reference point, but further analysis would require understanding the specific operational requirements and market conditions at the time of award.

Cost Per Unit: $745,310 (base year benchmark)

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for procurements below a certain dollar threshold. The receipt of 9 bids indicates a robust competitive environment for this specific requirement. A higher number of bids generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie for the award.

Taxpayer Impact: The strong competition suggests that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best price and terms for the Navy's tanker voyage charter needs.

Public Impact

The Department of the Navy benefits from securing essential deep-sea freight transportation services. This contract ensures the movement of goods or resources critical to naval operations. The geographic impact is likely global, given the nature of deep-sea freight transportation. The contract supports the maritime transportation workforce, including vessel crews and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market rates for tanker charters increase significantly during the contract period, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical transportation service could pose a risk if performance issues arise.
The short duration might necessitate frequent re-competition, leading to administrative overhead and potential market volatility.

Positive Signals

The firm-fixed-price contract shifts cost overrun risk to the contractor.
A competitive award process with 9 bidders suggests a healthy market and potential for good value.
The contract supports a critical function for the Department of Defense, ensuring operational readiness.

Sector Analysis

The maritime transportation sector is vital for global commerce and military logistics. This contract falls within the broader category of freight transportation services, specifically focusing on deep-sea tanker charters. The market for such services is influenced by global fuel prices, shipping demand, geopolitical events, and vessel availability. Comparable spending benchmarks in this sector would typically consider vessel size, charter duration, and route specifics. The Navy's reliance on such services underscores the importance of maintaining robust relationships within this industry.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and was not specifically set aside for small businesses (ss: false, sb: false). While the award itself may not directly benefit small businesses through a set-aside, the prime contractor, CrowleyStena Marine Solutions, may engage small businesses as subcontractors for various support services. The overall impact on the small business ecosystem would depend on the subcontracting opportunities generated by this contract and the specific nature of those opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Sealift Command Chartering
Defense Transportation Services
Ocean Freight Services
Strategic Sealift Program

Risk Flags

Potential for cost overruns despite FFP due to volatile market conditions.
Dependence on contractor performance for critical logistical support.
Geopolitical risks impacting shipping routes and operational costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.5 million to CROWLEYSTENA MARINE SOLUTIONS. TANKER VOYAGE CHARTER

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 $3.5 million.

What is the period of performance?

Start: 2025-12-29. End: 2026-02-14.

What is the specific type and capacity of the tanker chartered under this contract, and how does it compare to typical Navy requirements?

The provided data does not specify the exact type or capacity of the tanker chartered. However, the classification 'Deep Sea Freight Transportation' suggests a vessel capable of long-haul voyages across oceans. Navy tanker requirements can vary significantly, from smaller vessels for coastal resupply to large oil tankers for strategic fuel movement. Without more detailed specifications, it's difficult to benchmark this particular charter against typical Navy needs. Further analysis would require examining the contract's Statement of Work (SOW) or Performance Work Statement (PWS) to understand the vessel's specifications (e.g., deadweight tonnage, cargo capacity, specific certifications) and the intended use, such as fuel, water, or other liquid cargo transport.

How does the awarded price of $3.5 million for approximately 1.5 months compare to historical Navy tanker charter costs for similar services?

The awarded price of $3.5 million for a charter duration of approximately 1.5 months (47 days) equates to roughly $74,468 per day. The provided benchmark of $745,310 for the base year (assuming this represents a comparable period or a portion of the total value) suggests a daily rate of approximately $2,042 if it were a full year charter, which seems incongruous with the total award. To accurately compare, we need to understand if the $745,310 is a daily rate, a monthly rate, or a benchmark for a different contract. If we consider the total award of $3.5M over roughly 47 days, the daily rate is substantial. Historical data from the Navy's Military Sealift Command (MSC) would be necessary to determine if this daily rate is competitive. Factors such as vessel size, age, type (e.g., double-hulled, specific cargo handling equipment), route, and prevailing market conditions significantly influence charter rates. A thorough comparison would involve analyzing similar MSC charter awards over the past few years, adjusting for inflation and market fluctuations.

What are the specific risks associated with this firm-fixed-price contract for deep-sea freight transportation, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor bears the financial burden if costs exceed the agreed-upon price. For deep-sea freight transportation, this could manifest as unexpected increases in fuel costs, port fees, or maintenance expenses during the charter period. Geopolitical events, such as piracy or regional conflicts, could also disrupt routes and increase operational costs or risks. Furthermore, if the vessel experiences mechanical failures, the contractor is responsible for repairs, which could lead to delays and potential penalties. Mitigation strategies often include detailed contract clauses specifying performance standards, delivery schedules, and penalties for non-compliance. The Navy likely has contingency plans for supply chain disruptions and may require the contractor to maintain specific insurance coverage. The competitive bidding process itself helps mitigate risk by selecting a contractor with a proven track record and competitive pricing, implying they have adequately factored potential risks into their bid.

Given the contract was competed under SAP, what does this imply about the urgency and scale of the Navy's requirement for this tanker charter?

Competing a contract under Simplified Acquisition Procedures (SAP), typically for procurements valued between the simplified acquisition threshold (currently $250,000) and $10 million, suggests that the Navy's requirement for this tanker charter was likely considered urgent or of a scale that did not necessitate the full Federal Acquisition Regulation (FAR) Part 15 competitive procedures. SAP allows for more streamlined acquisition processes, potentially leading to faster award times. The award amount of $3.5 million falls well within the SAP range. This could indicate a short-term operational need, a requirement that arose unexpectedly, or a need for a service that is readily available in the market and for which competition can be efficiently solicited and evaluated. The number of bids received (9) demonstrates that even within the SAP framework, robust competition was achievable.

What is the track record of CrowleyStena Marine Solutions in fulfilling similar deep-sea freight transportation contracts for the Department of Defense?

CrowleyStena Marine Solutions is a known entity in the maritime logistics and transportation sector. While the provided data does not detail their specific track record with the Department of Defense (DoD) for similar tanker voyage charters, Crowley Maritime Corporation (a parent or related entity) has a long history of providing logistics and transportation services to the U.S. military, including chartering vessels, operating government-owned vessels, and providing port services. Their experience often includes supporting global military operations. To assess their specific track record for this type of contract, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented issues or successes in fulfilling similar DoD requirements. A positive performance history would increase confidence in their ability to meet the current contract's demands.

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: N3220526R6028

Offers Received: 9

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: $3,502,964

Exercised Options: $3,502,964

Current Obligation: $3,502,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline