Navy Awards $28M Seafighter Support Contract to Great Eastern Group, Inc. for Deep Sea Freight
Contract Overview
Contract Amount: $28,049,951 ($28.0M)
Contractor: Great Eastern Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-11-22
End Date: 2015-10-20
Contract Duration: 1,793 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Transportation
Official Description: SEAFIGHTER SUPPORT - BASE YEAR
Place of Performance
Location: PLANTATION, BROWARD County, FLORIDA, 33317
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.0 million to GREAT EASTERN GROUP, INC. for work described as: SEAFIGHTER SUPPORT - BASE YEAR Key points: 1. Contract awarded for deep sea freight transportation services. 2. GREAT EASTERN GROUP, INC. is the contractor. 3. The contract is a Cost Plus Fixed Fee type. 4. This is the base year of the contract. 5. The contract duration is 1793 days.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The base year award amount is $28,004,951.09. Benchmarking per-unit cost is difficult without more detailed service delivery data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The impact on taxpayers is uncertain due to the limited competition and the Cost Plus Fixed Fee structure, which may not always yield the most cost-effective outcome.
Public Impact
Ensures critical deep sea freight transportation for the Department of the Navy. Supports naval operations and logistics. Potential for cost inefficiencies due to contract type and limited competition. Long contract duration may impact adaptability to changing needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Limited competition
- Long contract duration
Positive Signals
- Ensures essential service delivery
- Established contractor relationship
Sector Analysis
This contract falls within the Transportation sector, specifically deep sea freight. Spending benchmarks for such specialized services can vary significantly based on route, cargo type, and operational requirements. The $28M base year award is substantial for a single contract.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that the primary contractor is likely a large business, and opportunities for small businesses may be limited to subcontracting roles, if any.
Oversight & Accountability
Oversight will be crucial for the Department of the Navy to manage the Cost Plus Fixed Fee structure effectively and ensure that costs are reasonable and allocable. Monitoring performance and adherence to contract terms is essential for accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Limited competition may result in higher prices.
- Lack of small business participation.
- Long contract duration may reduce flexibility.
Tags
deep-sea-freight-transportation, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to GREAT EASTERN GROUP, INC.. SEAFIGHTER SUPPORT - BASE YEAR
Who is the contractor on this award?
The obligated recipient is GREAT EASTERN GROUP, 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 $28.0 million.
What is the period of performance?
Start: 2010-11-22. End: 2015-10-20.
What specific services are included under 'SEAFIGHTER SUPPORT' and how are they priced under the Cost Plus Fixed Fee structure?
The 'SEAFIGHTER SUPPORT' likely encompasses a range of deep sea freight transportation services essential for naval operations. Under a Cost Plus Fixed Fee (CPFF) contract, the government reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. Effective oversight is needed to ensure costs are reasonable and the fee adequately compensates the contractor without being excessive.
What were the reasons for excluding certain sources in the competition, and did this exclusion impact the final price?
The exclusion of sources under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically occurs due to specific technical requirements, security concerns, or prior performance issues. The rationale behind these exclusions needs to be documented. Such limitations can reduce the number of bidders, potentially leading to less competitive pricing than if a broader competition had been feasible.
How does the $28M base year cost compare to similar deep sea freight contracts for military applications, and what is the projected total value over the contract's lifespan?
Benchmarking this $28M base year cost against similar deep sea freight contracts for military applications is challenging without detailed service scope and route information. The total value over the contract's lifespan (ending 2015-10-20, with a duration of 1793 days) would depend on exercised options and the final cost accumulation under the CPFF structure. A thorough cost analysis would be required for a precise comparison.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6133110R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7027 WEST BROWARD BLVD,, FORT LAUDERDALE, FL, 33317
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $30,441,196
Exercised Options: $30,441,196
Current Obligation: $28,049,951
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-11-22
Current End Date: 2015-10-20
Potential End Date: 2015-10-20 00:00:00
Last Modified: 2018-07-26
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