DoD Awards $97M Firm Fixed Price Contract for MSV(L) EMD Phase to Vigor Works LLC
Contract Overview
Contract Amount: $97,165,771 ($97.2M)
Contractor: Vigor Works LLC
Awarding Agency: Department of Defense
Start Date: 2017-09-28
End Date: 2025-09-30
Contract Duration: 2,924 days
Daily Burn Rate: $33.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 0001 FOR MSV(L) EMD PHASE, CLIN 0002
Place of Performance
Location: CLACKAMAS, CLACKAMAS County, OREGON, 97015
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $97.2 million to VIGOR WORKS LLC for work described as: DELIVERY ORDER 0001 FOR MSV(L) EMD PHASE, CLIN 0002 Key points: 1. Significant investment in shipbuilding and repair sector. 2. Vigor Works LLC is the sole awardee for this specific delivery order. 3. Contract duration extends to September 2025, indicating a long-term project. 4. The contract is firm fixed price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract value of $97.2 million for the EMD phase appears reasonable given the scope of shipbuilding and repair. Benchmarking against similar complex defense contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and access to a broad range of qualified contractors.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this significant defense procurement.
Public Impact
Supports the U.S. Navy's shipbuilding capabilities. Contributes to the industrial base in Oregon. Potential for job creation in the maritime sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or cost overruns if not managed effectively.
- Reliance on a single awardee for this phase may limit future competitive opportunities.
- Potential for schedule delays in complex shipbuilding projects.
Positive Signals
- Firm fixed price contract provides budget predictability.
- Awarded under full and open competition.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the shipbuilding and repair sector, a critical component of national defense. Spending in this area is often substantial due to the complexity and long lead times involved in naval vessel construction and maintenance.
Small Business Impact
The data does not indicate any specific set-asides for small businesses on this particular delivery order. Further analysis would be needed to determine the extent of small business participation in the overall program.
Oversight & Accountability
The Department of the Army is the contracting agency, implying oversight through their established procurement and program management processes. The long duration necessitates continuous monitoring for performance and cost.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration increases exposure to changing requirements or economic conditions.
- Potential for cost growth if EMD phase encounters unforeseen technical challenges.
- Sole awardee for this delivery order may limit future competitive pressure.
- Dependence on a single contractor for critical EMD phase.
Tags
ship-building-and-repairing, department-of-defense, or, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.2 million to VIGOR WORKS LLC. DELIVERY ORDER 0001 FOR MSV(L) EMD PHASE, CLIN 0002
Who is the contractor on this award?
The obligated recipient is VIGOR WORKS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $97.2 million.
What is the period of performance?
Start: 2017-09-28. End: 2025-09-30.
What is the specific definition and scope of the MSV(L) EMD Phase to ensure the $97M investment aligns with program objectives?
The MSV(L) EMD Phase likely refers to the Engineering and Manufacturing Development phase for a "Multi-Service Vehicle (Light)" or similar platform. This phase typically involves detailed design, prototyping, testing, and validation to ensure the system meets all technical and operational requirements before proceeding to full-scale production. The $97M investment is intended to cover these critical upfront development activities, mitigating risks and refining the design for future manufacturing.
What are the key performance indicators (KPIs) and milestones for Vigor Works LLC during this EMD phase to track progress and manage risk?
Key performance indicators would likely include adherence to design specifications, successful completion of prototype testing (e.g., structural integrity, mobility, payload capacity), timely delivery of design documentation, and achievement of critical program milestones. Milestones might involve preliminary design review (PDR), critical design review (CDR), and prototype acceptance. Effective tracking of these KPIs and milestones is crucial for identifying potential issues early and managing the inherent risks in complex engineering development.
How will the government ensure continued cost-effectiveness and value for money throughout the full lifecycle of the MSV(L) program beyond this EMD phase?
Ensuring long-term cost-effectiveness involves leveraging the data and lessons learned from the EMD phase to inform subsequent production contracts, potentially through competitive follow-on awards. Robust contract management, performance monitoring, and independent cost estimates will be vital. Furthermore, exploring opportunities for standardization across services and incorporating commercial best practices in manufacturing and sustainment can contribute to overall value realization throughout the program's lifecycle.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vigor Industrial LLC
Address: 9700 SE LAWNFIELD RD, CLACKAMAS, OR, 97015
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,165,771
Exercised Options: $97,165,771
Current Obligation: $97,165,771
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $3,889,745
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV17D0086
IDV Type: IDC
Timeline
Start Date: 2017-09-28
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-07-28
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