Riverbend Marine Service Auction

Tuesday, February 2, 2016

Matson, TOTE, Crowley Win Defense Contracts

By Mark Edward Nero

Oakland-based Matson Navigation and Concord, Calif.-headquartered Patriot Contract Services were among seven U.S. maritime firms that have won contracts to manage, maintain and operate 48 National Defense Reserve Fleet (NDRF) vessels through January 2024, US Transportation Secretary Anthony Foxx announced Jan. 22.

“The US Merchant Marine and National Defense Reserve Fleet play a crucial role in our nation’s security,” Maritime Administrator Chip Jaenichen said in a prepared statement. “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.”

In total, the Dept. of Transportation has awarded contracts with a total award value of $1.96 billion over eight years to the seven US maritime firms, with the Maritime Administration contracts being funded by the Department of Defense (DoD) National Defense Sealift Fund to support DoD’s strategic sealift mission.

Patriot Contract Services received a $227 million contract to bear responsibility for seven vessels, while Matson won a $174.6 million deal to maintain three vessels. Other contract awardees include Crowley Technical Management of Jacksonville, Fla., which will received $149.7 million to maintain four vessels; and TOTE Services, also of Jacksonville, which won a $461.1 million contract for the care of nine vessels.

Pennsylvania-based Keystone Shipping Services (11 vessels, $411.6 million); Ocean Duchess Inc. of Houston (eight vessels, $342.2 million); and Pacific-Gulf Marine Corp. of Louisiana (six vessels, $194.2 million) were the other awardees.

Award amounts include firm-fixed fees for the four-year base contract and two 2-year options, without future economic price adjustment, plus estimated reimbursable costs for eight years.
The 18 contracts awarded total $953.5 million for the four-year base contract, which runs through January 2020. The two 2-year options bring the total award value to $1.96 billion.

Forty-six of the vessels are part of the Department of Transportation’s Ready Reserve Force, a fleet managed by the Maritime Administration 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. The other 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, according to MARAD.

More information on the ships is available at www.marad.dot.gov.