Navy awards $630M contract for T-AGOS/T-AGM vessel operations and maintenance to Crowley Government Services

Contract Overview

Contract Amount: $630,713,991 ($630.7M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-11-20

End Date: 2023-09-30

Contract Duration: 3,236 days

Daily Burn Rate: $194.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPERATION&MAINTENANCE OF T-AGOS/T-AGM VESSELS, FIRM PERIOD CONTRACT AWARD

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $630.7 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: OPERATION&MAINTENANCE OF T-AGOS/T-AGM VESSELS, FIRM PERIOD CONTRACT AWARD Key points: 1. Contract provides essential operational and maintenance services for critical Navy vessels. 2. The firm-fixed-price structure aims to control costs over the contract's duration. 3. Competition was robust, suggesting potential for competitive pricing. 4. The contract spans nearly nine years, indicating a long-term need for these services. 5. Services are geographically concentrated in Florida, impacting regional economic activity. 6. The contractor has a significant role in maintaining key naval assets.

Value Assessment

Rating: good

The contract value of $630.7 million over approximately 8.9 years suggests an average annual spend of roughly $70.8 million. Benchmarking this against similar contracts for vessel operations and maintenance is challenging without specific service details and vessel types. However, the firm-fixed-price nature indicates an agreed-upon cost for defined services, which can be advantageous for budget predictability. The contract's duration and scale suggest a substantial investment in maintaining critical naval capabilities.

Cost Per Unit: N/A

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 offers. With six bidders participating, the level of competition appears healthy. This broad competition is generally expected to drive down prices and encourage innovative solutions as contractors vie for the award. The presence of multiple bidders suggests that the market for these specialized services is sufficiently developed.

Taxpayer Impact: A competitive bidding process for this significant contract helps ensure that taxpayer dollars are used efficiently, securing necessary services at a reasonable cost.

Public Impact

The U.S. Navy benefits from the continued operational readiness of its T-AGOS/T-AGM vessels. Services include the operation and maintenance of specialized maritime assets crucial for intelligence gathering and support. The primary geographic impact is in Florida, where the contractor is based and likely where much of the operational activity occurs. The contract supports a workforce skilled in maritime operations, engineering, and vessel maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for cost savings over time.
Dependence on a single contractor for critical vessel operations poses a risk if performance issues arise.
Geographic concentration in Florida could limit broader market engagement and potentially increase localized costs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market and potentially better pricing.
The contractor's experience in government services is likely a positive factor for performance.

Sector Analysis

The contract falls within the broader maritime logistics and transportation sector, specifically focusing on specialized government vessel operations. This sector is characterized by high barriers to entry due to capital requirements, specialized knowledge, and regulatory compliance. The market size for such niche government services is directly tied to defense spending and strategic maritime needs. Comparable spending benchmarks would typically involve other large-scale vessel support contracts awarded by naval or other defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Crowley Government Services, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve a tiered subcontracting structure where small businesses may participate.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, performance standards, and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Military Sealift Command Vessel Operations
Naval Support Services
Maritime Transportation Services
Deep Sea Freight Transportation Contracts
Defense Logistics Agency Contracts

Risk Flags

Long-term contract duration
Reliance on single contractor for critical assets
Potential for cost escalation if market conditions change significantly
Geographic concentration of services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $630.7 million to CROWLEY GOVERNMENT SERVICES, INC.. OPERATION&MAINTENANCE OF T-AGOS/T-AGM VESSELS, FIRM PERIOD CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is CROWLEY GOVERNMENT SERVICES, 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 $630.7 million.

What is the period of performance?

Start: 2014-11-20. End: 2023-09-30.

What is the historical spending pattern for T-AGOS/T-AGM vessel operations and maintenance by the Department of the Navy?

Analyzing historical spending for T-AGOS/T-AGM vessel operations and maintenance requires access to detailed historical contract data. Typically, such services are procured through multi-year contracts, often with options for extension. Spending can fluctuate based on operational tempo, vessel availability, and specific maintenance requirements. The $630.7 million awarded here represents a significant, long-term investment. Without specific historical data points, it's difficult to establish a precise trend, but such contracts are generally characterized by substantial, consistent outlays to ensure the readiness of specialized naval assets. The duration of this contract (nearly 9 years) suggests a stable, long-term requirement and a corresponding commitment of funds over that period.

How does the per-unit cost of operating and maintaining these vessels compare to similar government contracts?

Determining a precise per-unit cost comparison is challenging without detailed breakdowns of services rendered and the specific operational metrics for T-AGOS/T-AGM vessels. Per-unit costs could be analyzed based on factors like cost per vessel day, cost per mile steamed, or cost per maintenance hour. Given the specialized nature of these vessels (likely used for intelligence collection or support), their operating and maintenance costs may be higher than standard cargo or transport ships. The firm-fixed-price nature of this $630.7 million contract suggests that the government has negotiated a comprehensive package price. Benchmarking would require comparing this total contract value against the number of vessels supported and the duration, averaged over similar specialized naval support contracts.

What is Crowley Government Services, Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Crowley Government Services, Inc. has a substantial track record of performing services for the U.S. government, including the Department of Defense. They are known for providing logistics, vessel operations, and marine support services. Their experience often includes operating and maintaining various types of government-owned or chartered vessels. A review of federal procurement data would likely reveal numerous other contracts awarded to Crowley for similar services, potentially including other specialized naval platforms. Their ability to secure a large, long-term contract like this one suggests a demonstrated capacity and a history of satisfactory performance in meeting the government's requirements.

What are the key performance indicators (KPIs) used to assess the performance of Crowley Government Services under this contract?

While specific KPIs are not detailed in the award abstract, typical performance indicators for vessel operations and maintenance contracts include vessel uptime and availability, response times for maintenance and repairs, adherence to safety and environmental regulations, fuel efficiency, and crew performance. For T-AGOS/T-AGM vessels, which often have critical intelligence or support missions, mission readiness and data collection integrity (if applicable) would also be paramount. The firm-fixed-price contract structure incentivizes the contractor to meet these performance standards efficiently to maximize profit. The Navy's contracting officers would monitor these KPIs throughout the contract's duration, with formal reviews likely occurring at milestones.

What is the potential risk associated with the long duration (nearly 9 years) of this contract?

The long duration of this contract presents several potential risks. Firstly, it could lead to cost escalation if market rates for labor, parts, or fuel increase significantly beyond initial projections, although the firm-fixed-price structure aims to mitigate this for the government. Secondly, there's a risk of contractor complacency; with a long-term commitment secured, the incentive to innovate or aggressively seek efficiencies might diminish over time. Thirdly, the government becomes heavily reliant on a single contractor for critical services, increasing the impact of any performance failures or disruptions. Finally, long-term contracts can reduce flexibility for the government to adapt to changing technological requirements or strategic needs without incurring modification costs or penalties.

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: N0003312R2505

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $630,713,991

Exercised Options: $630,713,991

Current Obligation: $630,713,991

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,850,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline