MARAD awards NRDF contracts worth $1.96 billion

JANUARY 25, 2016 — Seven U.S. maritime firms have been awarded contracts worth a total $1.96 billion over eight years to to manage, maintain and operate 48 National Defense Reserve Fleet (NDRF) vessels through January 2024.

The 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, in announcing the awards. "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 total $953.5 million for the four-year base contract which runs through January 2020. The contracts also include two, two-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. The 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 the Armed Forces, and also responds to national and humanitarian emergencies. Additionally, two vessels are used to support Missile Defense Agency operations.

Each 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."

The awardees are:

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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