Vigor Works LLC awarded $45.6M for specialized boat production, highlighting a competitive procurement process

Contract Overview

Contract Amount: $45,642,555 ($45.6M)

Contractor: Vigor Works LLC

Awarding Agency: Department of Defense

Start Date: 2015-02-18

End Date: 2017-09-26

Contract Duration: 951 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CCM MK1 FULL RATE PRODUCTION UNITS FIRST ORDERING PERIOD

Place of Performance

Location: CLACKAMAS, CLACKAMAS County, OREGON, 97015

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to VIGOR WORKS LLC for work described as: CCM MK1 FULL RATE PRODUCTION UNITS FIRST ORDERING PERIOD Key points: 1. The contract value of $45.6 million represents a significant investment in specialized maritime assets. 2. Full and open competition after exclusion of sources suggests a deliberate selection process for specific capabilities. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially benefiting the government. 4. A duration of 951 days indicates a substantial production timeline for the ordered units. 5. The contract falls under the 'Boat Building' category, aligning with specific naval or special operations requirements. 6. The award to Vigor Works LLC, a single contractor, warrants scrutiny regarding long-term pricing and performance.

Value Assessment

Rating: fair

The award of $45.6 million for specialized boat production requires benchmarking against similar contracts for maritime assets. Without specific details on the type and complexity of the boats, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure is generally favorable for the government, transferring cost overrun risks to Vigor Works LLC. Further analysis would involve comparing the per-unit cost to industry benchmarks for comparable vessels and assessing if the final price reflects competitive pressures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific criteria limited the pool of eligible bidders. This suggests that only a few companies possessed the unique capabilities or certifications required for this specialized boat production. The limited number of bidders, while potentially ensuring specialized expertise, may have reduced the downward pressure on pricing that a broader competition could have achieved.

Taxpayer Impact: Taxpayers may have paid a premium due to the limited competition, as fewer bidders could mean less aggressive pricing. However, the specialized nature of the requirement might justify the limited pool to ensure mission-critical capabilities are met.

Public Impact

Specialized maritime assets will be delivered to U.S. Special Operations Command, enhancing operational capabilities. The contract supports the defense industrial base, specifically within the boat building sector. The production is likely to create or sustain skilled manufacturing jobs in Oregon, the state of the contractor. The delivered boats will be utilized for critical national security missions, benefiting the broader public through enhanced defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a broader solicitation.
The firm-fixed-price contract could lead to disputes if unforeseen production challenges arise.
Dependence on a single contractor for specialized assets poses a risk if performance falters.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
The award indicates Vigor Works LLC possesses specialized capabilities required by SOCOM.
The contract duration suggests a structured and planned production process.

Sector Analysis

The boat building industry is a niche sector within the broader manufacturing and defense industrial base. Contracts for specialized vessels, particularly for military or special operations use, often involve high technical specifications and stringent quality controls. The market size for such specialized military boats is relatively small, dominated by a few key players with proven track records. This contract represents a significant award within this specialized segment, likely contributing to the contractor's revenue and market position.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award went to Vigor Works LLC, which is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans for small businesses. This means the primary economic benefit will flow to the prime contractor, and the impact on the broader small business ecosystem in this specific contract is likely minimal unless Vigor Works LLC voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and U.S. Special Operations Command. As a firm-fixed-price contract, oversight would focus on ensuring adherence to specifications, delivery schedules, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Vessel Construction
Special Operations Equipment Procurement
Maritime Security Contracts
Defense Manufacturing

Risk Flags

Limited competition may impact final price.
Contractor's sole award for this specific item requires monitoring.
Specialized nature of the asset necessitates close performance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to VIGOR WORKS LLC. CCM MK1 FULL RATE PRODUCTION UNITS FIRST ORDERING PERIOD

Who is the contractor on this award?

The obligated recipient is VIGOR WORKS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $45.6 million.

What is the period of performance?

Start: 2015-02-18. End: 2017-09-26.

What is the specific type and capability of the boats being produced under this contract?

The contract data indicates the subject is 'CCM MK1 FULL RATE PRODUCTION UNITS FIRST ORDERING PERIOD' and the North American Industry Classification System (NAICS) code is '336612' for Boat Building. While the specific designation 'CCM MK1' suggests a particular model or class of craft, the precise capabilities, dimensions, intended use (e.g., speed, range, armament, stealth features), and technological sophistication are not detailed in the provided summary data. These details are crucial for a comprehensive understanding of the contract's value and the contractor's performance requirements. Typically, such specialized vessels for U.S. Special Operations Command would possess advanced features tailored for covert insertion/extraction, reconnaissance, or direct action missions, potentially including high-speed capabilities, low observability, and robust construction for demanding operational environments.

How does the awarded amount of $45.6 million compare to historical spending on similar boat production for SOCOM?

Comparing the $45.6 million award to historical spending requires access to detailed procurement data for similar SOCOM contracts. Without that specific comparative data, it's difficult to definitively state whether this amount is high, low, or average. However, the contract is for 'Full Rate Production Units,' suggesting it follows a period of development or low-rate initial production, which often involves higher per-unit costs. The 'Boat Building' NAICS code (336612) covers a range of vessels, from small recreational boats to large commercial and military craft. Given the likely specialized nature for SOCOM, the per-unit cost could be significantly higher than standard patrol boats due to advanced systems, materials, and performance requirements. A thorough analysis would involve identifying comparable SOCOM contracts for specialized maritime craft over the last 5-10 years and normalizing for inflation and capability differences.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this contract. However, as a firm-fixed-price contract for military hardware, it is reasonable to assume that KPIs would revolve around meeting stringent technical specifications, adhering to delivery schedules, and ensuring high-quality construction and system integration. QA measures would likely involve rigorous inspections at various production stages, material testing, system functionality tests, and final acceptance trials conducted by government representatives. The U.S. Special Operations Command (SOCOM) is known for demanding high standards, so the QA protocols are expected to be comprehensive, covering everything from hull integrity and propulsion systems to electronic warfare and communication suites, ensuring the vessels are mission-ready and reliable under operational stress.

What is Vigor Works LLC's track record with government contracts, particularly with the Department of Defense?

Vigor Works LLC has a history of securing government contracts, primarily with the Department of Defense. The provided data shows this specific award of $45.6 million for boat building. Further investigation into contract databases like SAM.gov or FPDS would reveal the full scope of their contract history, including the types of goods or services provided, award amounts, and performance ratings, if available. A positive track record with SOCOM, especially for specialized assets, suggests the company possesses the necessary technical expertise, production capacity, and quality control systems to meet demanding requirements. Conversely, any past performance issues, contract disputes, or quality concerns would be critical factors in assessing the risk associated with this current award.

What is the potential impact of 'Full and Open Competition After Exclusion of Sources' on pricing and innovation?

The 'Full and Open Competition After Exclusion of Sources' (FCAES) designation implies that the government initially intended a broad competition but subsequently excluded certain sources, possibly due to specific technical requirements, security clearances, or unique capabilities possessed by the remaining bidders. While it's a form of full and open competition, the exclusion narrows the field. This can lead to less aggressive pricing compared to a truly unrestricted competition, as fewer companies are vying for the contract. However, it ensures that the selected contractors possess the highly specialized skills or technologies necessary for the requirement. Regarding innovation, FCAES might incentivize contractors to propose advanced solutions to meet the specific criteria that led to the exclusion of others. The ultimate impact on pricing and innovation depends on the number of bidders remaining after the exclusion and the nature of the technical requirements.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222211R0001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

Address: 9700 SE LAWNFIELD RD, CLACKAMAS, OR, 97015

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,642,555

Exercised Options: $45,642,555

Current Obligation: $45,642,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0080

IDV Type: IDC

Timeline