DoD's $902M Deep Sea Freight Contract Awarded to Crowley Government Services Faces Scrutiny

Contract Overview

Contract Amount: $902,579,583 ($902.6M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2022-09-30

Contract Duration: 2,556 days

Daily Burn Rate: $353.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::CT::IGF AWARD OF BOBO CLASS/STOCKHAM CONTRACT

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $902.6 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF AWARD OF BOBO CLASS/STOCKHAM CONTRACT Key points: 1. The contract, valued at over $902 million, covers deep sea freight transportation services. 2. Awarded under full and open competition, the contract's pricing and value are key areas for analysis. 3. Potential risks include contractor performance, cost overruns, and the long duration of the contract. 4. The sector is transportation and logistics, crucial for military operations and supply chains.

Value Assessment

Rating: fair

The contract's total value is substantial, but without specific delivery details or comparable contract data, a precise value assessment is difficult. The firm fixed-price structure suggests an attempt to control costs, but the long duration could lead to price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a broad solicitation for bids. This method generally promotes competitive pricing, but the effectiveness of price discovery depends on the number and quality of bids received and the complexity of the services required.

Taxpayer Impact: The significant value of this contract means taxpayer funds are heavily invested. While competition aims for efficiency, the long-term nature and potential for unforeseen costs warrant careful monitoring to ensure optimal use of public funds.

Public Impact

Ensures critical deep sea freight transportation for the Department of the Navy. Supports military readiness and logistical capabilities through reliable shipping services. Impacts the maritime logistics industry and associated employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) increases risk of cost escalation and performance degradation.
Lack of specific performance metrics or benchmarks makes assessing value for money challenging.
Potential for contractor lock-in due to specialized nature of deep sea freight.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type aims to provide cost certainty.
Contract supports essential military logistics and national security.

Sector Analysis

This contract falls within the transportation and logistics sector, specifically deep sea freight. Spending in this area is critical for military deployment and supply chain management. Benchmarks for similar long-term, high-value freight contracts are often influenced by fuel costs, geopolitical stability, and vessel availability.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct small business participation or benefit from this specific award, which could be a missed opportunity for economic inclusion.

Oversight & Accountability

Oversight is crucial given the contract's value and duration. The Department of the Navy and potentially the Inspector General's office would be responsible for monitoring performance, adherence to terms, and financial accountability to ensure taxpayer funds are used effectively and efficiently.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long-term contract duration.
High contract value.
Lack of specific performance data.
No small business participation.
Potential for market volatility impacting costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $902.6 million to CROWLEY GOVERNMENT SERVICES, INC.. IGF::CT::IGF AWARD OF BOBO CLASS/STOCKHAM CONTRACT

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 $902.6 million.

What is the period of performance?

Start: 2015-10-01. End: 2022-09-30.

What specific performance metrics are in place to ensure the quality and timeliness of the deep sea freight transportation services provided under this contract?

The provided data does not detail specific performance metrics. However, for a contract of this magnitude and duration, standard oversight would typically involve tracking on-time delivery rates, cargo condition upon arrival, adherence to shipping schedules, and compliance with safety and environmental regulations. The effectiveness of these metrics would depend on the contract's statement of work and the agency's monitoring protocols.

How does the firm fixed-price structure mitigate risks associated with fluctuating fuel costs and market volatility over the contract's seven-year term?

A firm fixed-price contract aims to shift the risk of cost overruns to the contractor. However, over a seven-year term, significant market volatility (e.g., fuel prices, geopolitical events impacting shipping lanes) can still pose risks. The contractor likely factored potential fluctuations into their initial bid price. The agency's risk lies in potentially overpaying if market conditions become unexpectedly favorable to the contractor.

What is the anticipated impact of this contract on the operational readiness and logistical capabilities of the Department of the Navy?

This contract is fundamental to ensuring the Department of the Navy maintains robust logistical capabilities for deploying assets and supplies globally. Reliable deep sea freight transportation is essential for sustained operations, exercises, and responding to contingencies. The contract's success directly correlates with the Navy's ability to project power and fulfill its mission requirements effectively.

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: N0003314R3135

Offers Received: 7

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: $902,579,583

Exercised Options: $902,579,583

Current Obligation: $902,579,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline