Contracts Awarded for U.S. National Defense Reserve Fleet

By Joseph R. Fonseca
Sunday, January 24, 2016
Courtesy Maritime Administration

U.S. Transportation Secretary Anthony Foxx today announced that DOT has awarded contracts with a total award value of $1.96 billion over eight years to seven U.S. maritime firms to manage, maintain and operate 48 National Defense Reserve Fleet (NDRF) vessels through January 2024.  These Maritime Administration contracts are funded by the Department of Defense (DoD) National Defense Sealift Fund to support DoD’s strategic sealift mission.
 
“Since 1946, National Defense Reserve Fleet vessels have facilitated U.S. strategic sealift, natural disaster response, and humanitarian operations all around the world,” said U.S. Transportation Secretary Anthony Foxx.  “From supporting our troops in Afghanistan and Iraq and providing humanitarian support for Haiti, to supporting the United Nation’s at-sea neutralization of Syria’s chemical weapons – this fleet reliably, economically, and efficiently advances U.S. contributions to global peace and prosperity.”
 
The eighteen contracts awarded to seven U.S. maritime firms total $953.5 million for the 4-year base contract which runs through January 2020.  The contracts also include two, 2-year options bringing the total award value to $1.96 billion. The contracts were awarded to companies that offered the best value to the government.  These seven companies are responsible for maintaining the ships in good mechanical condition and ensuring that crews are available to operate them when needed.
 
Forty-six of the vessels are part of the Department of Transportation’s Ready Reserve Force, a fleet managed by the Maritime Administration (MARAD) that provides rapid mass movement of Department of Defense equipment and supplies to support our Armed Forces, and also responds to national and humanitarian emergencies.  Additionally, two vessels are used to support Missile Defense Agency operations.  Each certified, mission-ready vessel is maintained so that it can be fully activated and deployed quickly. The 46 Ready Reserve Force vessels have been activated hundreds of times since 2002. 
 
“The U.S. Merchant Marine and National Defense Reserve Fleet play a crucial role in our nation’s security,” said Maritime Administrator Paul ‘Chip’ Jaenichen.  “These contract awards will allow our commercial maritime companies to continue providing top-notch support to our troops who are stationed or deployed around the world.”
 
MARAD, which maintains the National Defense Reserve Fleet, promotes the development and maintenance of an adequate, well-balanced, United States merchant marine fleet, sufficient to carry the Nation’s domestic waterborne commerce and a substantial portion of its waterborne foreign commerce, and capable of service as a naval and military auxiliary in time of war or national emergency.  For more information on these ships, visit www.marad.dot.gov.
 
A list of awardees is provided below.  Detailed information about the contracts can be found at www.fedbizops.gov and at MARAD’s Virtual Office of Acquisitions. 
 
Crowley Technical Management, Inc., Jacksonville, FL
4 vessels: (2 CAPE Ws, 2 TAVBs)
$ 149,755,923.82
 
Keystone Shipping Services, Bala Cynwyd, PA
11 vessels: (6 CAPE D/Es, 3 CAPE Rs, 2 CAPE Ks)
$ 411,596,846.85
 
Matson Navigation Company, Inc., Oakland, CA
3 vessels: (CAPE Hs)
$ 174,612,435.39
 
Ocean Duchess, Inc., Houston, TX
8 vessels: (4 CAPE Is, 2 FSS-West Coast, 2 CAPE Ms)
$ 342,263,690.65
 
Pacific-Gulf Marine, Corp., Gretna, LA
6 vessels: (6 TACS)
$ 194,254,798.52
 
Patriot Contract Services, LLC, Concord, CA
7 vessels: (3 CAPE Ts, 2 CAPE Vs, 2 ro/ro -CALLAGHAN/ORLANDO)
$ 227,068,183.07
 
Tote Services, Inc., Jacksonville, FL
9 vessels (6 FSS -East/Gulf coast, 1 OPDS, 2 MDA)
$ 461,164,825.79
 
* Award amounts include firm-fixed fees for the 4-year base contract and two 2-year options, without future economic price adjustment, plus estimated reimbursable costs for eight years.
 

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