A02.12 PWS - DDVOCs - FY2026 - 2027 dated 2026.09.03.docx

Performance Work Statement (PWS) Compilation of Ocean-Going Self-Propelled Deep-Draft Vessel Operating Costs (DDVOCs) 2026-2027

Institute for Water Resources (IWR) U.S. Army Corps of Engineers (USACE)

Introduction

Background The Institute for Water Resources (IWR), U.S. Army Corps of Engineers (USACE), is responsible for the compilation and analysis of vessel operating cost (VOC) data for self-propelled, ocean-going, deep-draft vessels serving the Nation's deep-draft coastal waterways and harbors. The resulting data are used to develop representative vessel operating and replacement cost estimates by vessel type, size, cargo capacity, and registry.

USACE Headquarters and field offices use these estimates in the economic evaluation of navigation projects and alternatives. VOC estimates support analyses of transportation costs and operational efficiencies associated with construction, operation, maintenance, deepening, widening, or other improvements to navigation channels and associated general navigation features.

Vessel operating costs are applied in accordance with applicable USACE civil works planning guidance, including ER 1105-2-100, current edition and as amended.

C. Definitions For purposes of this PWS:

1. Contractor = the professional services entity performing the work described herein.

2. Contributors = vessel owners, operators, shipyards, maritime organizations, agencies, consultants, databases, and other sources providing data or information.

3. DDVOC = deep-draft vessel operating cost.

4. DWT = deadweight tonnage.

5. MXSLLD = maximum summer loadline draft.

6. VOC = vessel operating cost.

II. General Information - Core Tasks

Cost Categories The Contractor shall collect and analyze data in two principal cost areas:

1. Vessel acquisition and replacement costs, including initial hull construction, capital investment, lifecycle employment, retirement, demolition, and salvage; and

2. Vessel operating and maintenance costs, including crew and manning, insurance, administration and management, maintenance and repair, supplies, surveys, bunkerage, and other significant operating expenses.

The Contractor shall distinguish, where appropriate, between quasi-fixed and quasi-variable operating costs. It is essential that bunkerage costs are investigated separately and estimated as a critical input to operational costs of ocean-going commercial cargo vessels given the associated significance of costs respective to the total daily operating budget of a vessel.

Data Collection The Contractor shall use available primary and secondary sources to the maximum extent practical. Sources may include:

· Vessel owners and operators;

· Shipyards and shipbuilders;

· Naval architects and classification societies;

· Maritime consultants and trade organizations;

· Government agencies;

· Academic and research organizations;

· Commercial maritime databases; and

· Industry publications and other credible sources.

The Contractor may use interviews, questionnaires, telephone inquiries, correspondence, commercially available information, and other appropriate methods to obtain data.

Data obtained from secondary sources shall be evaluated for reasonableness and, where practical, verified against knowledgeable industry sources.

The Contractor shall seek a broad and representative cross-section of the maritime industry, considering vessel type, DWT, geographic market, fleet size, and registry.

Data Quality and Statistical Analysis The Contractor shall collect sufficient data to support credible statistical analysis of vessel costs. The analysis shall identify appropriate statistical relationships, including measures of variance and statistical confidence or uncertainty, as applicable.

The Contractor shall evaluate whether existing vessel type and DWT classifications remain representative of the world deep-draft fleet. Existing classifications shall generally be retained where necessary to maintain consistency with historical USACE analyses. The Contractor shall identify obsolete, emerging, or materially changed vessel classes and recommend modifications where warranted.

The Contractor shall estimate vessel replacement or acquisition costs using available newbuild and capital cost data.

The Contractor shall convert financial or accounting cost information into economic resource cost estimates as appropriate for USACE economic analysis.

Capital costs shall account for:

· Vessel economic or functional service life;

· Salvage value;

· Demolition or recycling;

· Retirement from service; and

· Other relevant lifecycle considerations.

The Contractor shall calculate average annual equivalent (AAEQ) costs using the water resources interest or discount rate provided by the Government.

Operating cost estimates shall generally use a three-year historical moving average. Capital acquisition or replacement costs shall generally use a five-year historical moving average. The Contractor may recommend alternative averaging periods when supported by the characteristics of the available data.

The Contractor shall develop statistically supported relationships for estimating vessel construction and operating costs across DWT classes and vessel types.

The analysis shall consider, as appropriate:

· DWT;

· Vessel length;

· Breadth;

· Maximum summer loadline draft;

· Vessel type; and

· Registry.

The Contractor shall evaluate linear, log-linear, nonlinear, or other appropriate statistical models and select the model providing the best reasonable statistical fit.

The Contractor shall document:

· The model-selection methodology;

· Equations and algorithms;

· Statistical measures of fit and variance;

· Treatment of outliers;

· Applicability to vessel sizes for which direct observations are unavailable; and

· Limitations of the resulting cost functions.

The resulting functions shall permit estimation of costs for intermediate vessel sizes within the applicable vessel type and registry classifications.

Vessel Utilization and Availability The Contractor shall evaluate vessel utilization and availability, including the amount of time vessels are employed, available for employment, underemployed, or withdrawn from service.

The analysis shall consider, where data are available:

· Maintenance and repair;

· Drydocking;

· Inspection;

· Laytime;

· Other periods of inactivity; and

· Other factors affecting productive vessel employment.

These data shall support calculation of vessel costs on a per-unit-of-time basis appropriate for economic analysis.

II. SCOPE OF WORK

The Contractor shall perform the following tasks during the period of performance.

Task 1. Compilation of Vessel Operating Costs (VOCs) [4 Long-Term Historical Vessel Types] & Support; Computerized Application The Contractor shall collect current data on vessel acquisition, replacement, and operating costs for representative ocean-going, self-propelled, deep-draft vessels.

Operating cost data shall include, as applicable:

· Crew wages and benefits;

· Provisions and subsistence;

· Crew transportation and logistics;

· Insurance and indemnity;

· Vessel administration and management;

· Maintenance and repair;

· Surveys and inspections;

· Supplies and stores;

· Bunkerage and fuel consumption;

· Other significant vessel operating expenses.

The Contractor shall also collect vessel construction or replacement cost information sufficient to support estimation of capital costs by vessel type and DWT class.

DDVOC compilation shall address the following vessel types, with separate treatment of U.S. and foreign registry where appropriate. Vessel classes should include:

1. Tankers

· Crude and other large liquid bulk carriers;

· Chemical tankers; and

· Product tankers.

2. Bulk and Ore Carriers

3. Container Ships

4. General Cargo Carriers

5. Gaseous Tankers

· LNG;

· LPG; and

· Ammonia carriers.

6. Roll-On/Roll-Off Carriers

7. Vehicle/Pure Car Carriers

8. Refrigerated Cargo Carriers

9. Ocean-Going Passenger Vessels, including liners and cruise ships.

The Contractor shall evaluate the applicability of existing DWT classes and identify emerging or obsolete size classes. The existing general structure of USACE vessel classifications shall be maintained where necessary for comparison with historical analyses.

Task 2. Compilation of Vessel Operating Costs (VOCs) for Additional/Newly added Vessel Types The Contractor shall separately estimate construction or current newbuild replacement costs based on available information collected from interviews structured and conducted for comparable work with vessel owners and/or vessel operators, cost estimates available from shipyard owners and/or operators, naval architects and classification societies or other viable individuals, entities, or sources familiar with new or evolving hull asset design, construction and operation and maintenance (to include government or public-sector agencies, private sector industry groups, trade-associated consultancies, and other relevant entities, etc.). Relevant information should in measure be compiled as available from research of authoritative industry-related publications and journals. Cost data collected for the various types of vessels under investigation must be analyzed for each cost component typically detailed in IWR aggregate vessel cost tables as previously described relative to hull, machinery, manning and operational costs with estimates scaled as appropriate and necessary to cover all required or relevant vessel DWT size categories. Correspondingly, the Contractor shall estimate vessel operating costs (VOCs) including crew-related costs (crew wages, crew, fringe benefits, provisions and subsistence, and crew transportation costs, etc.), vessel-related operations costs (maintenance and repair, supplies, insurance and indemnity, and other or miscellaneous costs), administration and management of vessel assets and crew, bunkerage costs and consumption (for cargo and passenger vessel operations), and any other significant costs related to vessel operations conducted as an ongoing commercial or business concern. As with VOCs developed for established DWT classes, the Contractor shall estimate vessel-related costs relative to periods of (probable or typical) employment versus inactivity for withdrawals from service associated with maintenance and support activities for productive employment versus significant laytime (where applicable or to the extent possible Task 3. Specialized Survey of Evolving Design Classes or Changes in Design The Contractor shall conduct a specialized survey of evolving vessel design classes and significant changes in vessel design, size, propulsion, capacity, or technology that may affect vessel construction, replacement, or operating costs.

The survey shall identify new, emerging, modified, or declining vessel classes that may not be adequately represented by the existing USACE DDVOC vessel classifications. Particular attention shall be given to vessel classes experiencing significant changes in size or design, including large container vessels and other rapidly evolving vessel types.

The Contractor shall evaluate available information from vessel owners and operators, shipyards, naval architects, classification societies, maritime industry sources, commercial databases, and other credible sources. The Contractor shall identify significant changes in vessel characteristics and determine whether those changes warrant modification of existing vessel classifications, DWT ranges, cost relationships, or analytical assumptions.

For evolving or insufficiently represented vessel classes, the Contractor shall compile available construction and operating cost information and develop reasonable cost estimates or adjustment factors. Where sufficient data are not available, the Contractor shall document the data limitations, assumptions, and methodology used to develop the estimates.

The Contractor shall provide recommendations regarding whether existing DDVOC vessel classes and size ranges remain appropriate for USACE economic analysis and identify any new or modified classes that should be incorporated into the DDVOC tables or computerized model. The Contractor shall evaluate developments in vessel design, size, propulsion, and technology that may materially affect vessel construction or operating costs.

Particular attention shall be given to new or evolving vessel classes for which cost relationships may differ materially from established fleet classes, including large container vessels and other rapidly developing vessel types.

The Contractor shall identify where insufficient data exist and shall document the assumptions and analytical methods used to estimate costs for emerging vessel classes.

Task 4. Compilation & Analysis of Worldwide and Regional Market Analysis for World Deep-Draft Bunkerage Costs The Contractor shall compile bunkerage consumption and cost data as a major component of vessel operating costs. The Contractor shall estimate bunkerage costs for major ports or port regions representing significant global bunkerage markets. The analysis shall include a minimum of approximately 30–35 ports or port regions and, where practical, up to approximately 60 geographically diverse locations.

The Contractor shall:

· Identify proposed ports or bunker markets and provide supporting rationale;

· Compile bunkerage prices in U.S. dollars;

· Identify the range of prices, including maximum and minimum values where available;

· Identify the applicable averaging period;

· Evaluate monthly or quarterly data where available;

· Evaluate bunkerage price volatility over the historical period; and

· Analyze relationships between fuel consumption, engine horsepower, vessel type, geographic location, trade route, and operating characteristics.

Bunkerage information may primarily be obtained from commercially available secondary sources.

PRODUCT(S)

The Contractor shall develop or update a computerized application to support generation, review, adjustment, and export of DDVOC estimates.

The application shall, to the extent practical, allow users to adjust cost estimates based on:

1. Crew size and nationality or applicable manning requirements;

2. Vessel age;

3. Bunkerage cost and regional trade route;

4. Vessel registry; and

5. Lifecycle maintenance and vessel service life.

The application shall generate or export results in spreadsheet or other formats specified by the Government and shall facilitate generation of the standardized DDVOC tables.

The Contractor shall research existing vessel operating cost models and determine whether an existing model or methodology can reasonably support the required application. If no suitable existing model is identified, the Contractor shall develop the required functionality.

The application shall be compatible with the Government's designated computing environment. The Contractor shall provide source code, executable files, documentation, data structures, and other materials necessary for Government use and maintenance.

The Contractor shall evaluate, using available information, other factors that may materially affect DDVOC estimates, including:

· Differences among foreign registries;

· Air draft and hull height;

· Ice-class vessels;

· Other vessel types or subtypes that can reasonably be estimated using cost adjustment indices;

· Emissions-control equipment and associated operating costs; and

· Other emerging technologies or vessel characteristics identified by the Government as material to DDVOC estimates.

These factors shall be addressed at a level of effort commensurate with the availability and quality of data. Where reliable data are insufficient for detailed estimates, the Contractor shall document the limitations and provide appropriate recommendations.

IV. CONFIDENTIALITY AND PROPRIETARY INFORMATION

The Contractor shall protect confidential, proprietary, and commercially sensitive information obtained from Contributors in accordance with applicable Federal laws, regulations, contractual requirements, and agreements with the Contributors.

The Contractor shall identify information subject to restrictions on disclosure and shall provide the Government with aggregated results rather than identifiable proprietary information.

DDVOC estimates and supporting information shall be distributed and used in accordance with Government requirements and any applicable restrictions associated with Contributor-provided information.

The Contractor shall notify the Government of any known restrictions affecting the use or distribution of data or estimates.

V. GOVERNMENT DATA, OWNERSHIP, AND RIGHTS

All final analytical products, reports, databases, spreadsheets, software, source code, documentation, equations, algorithms, and other deliverables developed under this PWS shall be provided to IWR in accordance with the applicable contract provisions governing Government rights.

The Contractor shall identify any pre-existing Contractor-owned materials incorporated into the deliverables.

The Government shall receive the rights necessary to use, maintain, modify, and support the DDVOC model and associated deliverables for official USACE purposes, subject to applicable rights and restrictions associated with third-party or Contributor-provided information.

VI. DELIVERABLE PRODUCTS

The Contractor shall provide the following deliverables.

Deliverable 1. Initial Progress Report Within 60 calendar days after contract award, the Contractor shall provide an initial progress report describing:

· Data collection methodology;

· Proposed sources and Contributors;

· Proposed vessel types and size classes;

· Proposed registry classifications;

· Planned bunkerage markets;

· Anticipated data limitations; and

· Any required confidentiality or data-use agreements.

Deliverable 2. Data Collection Progress Report Approximately 90–110 calendar days after award, the Contractor shall provide a progress report describing the status of data collection and preliminary assessment of data quality and coverage.

The report shall identify significant data gaps and explain how those gaps will be addressed.

Deliverable 3. Draft DDVOC Report and Estimates Approximately 180–210 calendar days after award, the Contractor shall submit draft DDVOC estimates and supporting documentation.

The draft shall include:

· Preliminary vessel construction/replacement costs;

· Preliminary operating costs;

· Bunkerage costs;

· Statistical analyses and cost functions;

· Vessel classification and registry methodology;

· Emerging vessel class analysis;

· Data sources and limitations; and

· A draft computerized DDVOC application.

Deliverable 4. Final DDVOC Report and Estimates Approximately 260–320 calendar days after award, the Contractor shall submit a final report incorporating Government comments.

The final report shall document:

· Data collection and analytical methods;

· Vessel construction/replacement costs;

· Vessel operating costs;

· Bunkerage costs;

· Statistical relationships and cost functions;

· Vessel utilization assumptions;

· Emerging vessel classes;

· Data quality and limitations;

· Recommendations for future updates; and

· Final DDVOC tables in the format specified by the Government.

Deliverable 5. Final Computerized DDVOC Application The Contractor shall provide a finalized computerized application for generating, reviewing, and making authorized adjustments to DDVOC estimates.

The deliverable shall include, as applicable:

· Executable application;

· Source code;

· Databases and data files;

· User documentation;

· Technical documentation;

· Algorithms and equations;

· Input/output specifications; and

· Instructions for updating and maintaining the application.

Deliverable 6. Supporting Data and Documentation The Contractor shall provide supporting spreadsheets, databases, analytical files, source documentation, and other materials necessary for the Government to understand, reproduce, review, and use the final DDVOC estimates, subject to applicable restrictions on proprietary or confidential information.

VII. SCHEDULE OF DELIVERABLES

The anticipated schedule is as follows:

The schedule may be adjusted by mutual agreement when necessary to accommodate Government review, availability of data, Contributor response times, or other circumstances affecting performance.

The Contractor is not required to perform the work continuously throughout the period of performance. Work may be sequenced as appropriate to maximize the efficiency of data collection and analysis.

VIII. CONTRACTOR QUALIFICATIONS

The Contractor shall provide personnel with demonstrated expertise in maritime economics, vessel operating costs, transportation economics, maritime logistics, cost analysis, and statistical analysis.

The Contractor's team shall have demonstrated experience with:

· Ocean-going deep-draft vessels;

· Vessel construction and operating costs;

· Maritime transportation and logistics;

· Economic resource costing;

· Vessel fleet characteristics and classification;

· Statistical analysis and cost modeling; and

· Development or application of computerized cost models.

The Contractor shall possess current knowledge of the domestic and international maritime industry sufficient to obtain, evaluate, and interpret vessel cost information.

IX. PERIOD OF PERFORMANCE

The period of performance shall be one (1) year, not to exceed approximately 365 calendar days from contract award, unless otherwise specified in the resulting contract.

All work described in this PWS shall be completed within the period of performance.

Option Task 1. Detailed investigation of long-term normalized cost and returns on capital for vessel asset acquisition, operation, and management according to vessel type and size or capacity class, and where or if appropriate, registry. This involves investigation and measure of capital costs or costs of financing and borrowing for asset acquisition, operation, and management as a truer measure of capital costs than using the interest or discount rate traditionally specified by the Government based on the U.S. Federal water resources interest or discount rate. This effort will also involve the estimation of long-term margins for associated profit or net return which when previously reviewed by academicians appears to indicate such financial margins could be (but are not currently) included in allowances for economic resource costs based on principles of including long-term normalized profit margins in context of long-term normalized costs and requirements to conduct or continue operations as an ongoing business concern (thresholds of return to call a business or economic entity into existence with concern long-term or continued ongoing operation), and reconciliation with equilibrium or long-term average related rates for associated waterborne transportation services.

Option Task 2. Vessel operating costs (VOC) adjustment for ice-classed vessels (to include Arctic and IACS polar classes). Due to requirements for use or employment of ice-classed hulls of some existing trade routings and potential new routings that may become generally available to commercial cargo shipping (i.e., such as the Northwest Passage physically located above or within the jurisdiction of Northern Canada) it has been determined that adjustments to base vessel operating costs for ice-class construction of hulls may need to be compiled and made available to USACE analysts. Adjustments will be formulated according to all vessel types and sizes evaluated for the general VOC PWS and constituent indices will be prepared for adjustment to construction and any other costs (i.e., such as insurance or crewing, power consumption, etc.) to or for which adjustment based on ice-classed rating pertains or is applicable. Where grade or level of ice class varies (such as for scantling requirements or strength, whether breaker escort is required, limitations on time of year, and ice conditions depending on design for severity of service), the Contractor shall formulate applicable adjustment indices for adjustment to base vessel operating costs respective to vessel type, size or capacity class, and registry as appropriate.

Option Task 3. The estimation of adjustment indices for other vessel types and sizes. Detailed efforts to compile vessel operating costs traditionally extend to a (relative) few generalized vessel type classifications of the world fleet that covers the majority of vessels supporting trade and shipping for the United States. However, there are additional classifications significantly differing in specifications by type that serve or employ coastal harbors and affiliated waterway systems for operation. In contexts of an optional tasking the Contractor shall prepare a time and cost estimate based on any prior work or available research to develop or update cost relationships to the extent practical that extend beyond or further disaggregate the traditional generalized vessel types as defined in the base technical scoping of the PWS. The intent is not to extend the same level of investigation to determine subject vessel operating costs but to determine overall adjustment indices relative to the most appropriate or technically related vessel type evaluated under the more detailed base requirements as set forth for the primary vessel types of the PWS as described herein.