DoD Awards $31.6M for Craft Production to Vigor Works LLC Under Full and Open Competition

Contract Overview

Contract Amount: $31,557,822 ($31.6M)

Contractor: Vigor Works LLC

Awarding Agency: Department of Defense

Start Date: 2016-11-30

End Date: 2019-01-12

Contract Duration: 773 days

Daily Burn Rate: $40.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FULL RATE PRODUCTION (FRP) CRAFT 19-22

Place of Performance

Location: CLACKAMAS, CLACKAMAS County, OREGON, 97015

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to VIGOR WORKS LLC for work described as: FULL RATE PRODUCTION (FRP) CRAFT 19-22 Key points: 1. Significant contract value of $31.6 million for craft production. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a competitive process with initial source limitations. 3. Risk appears moderate given the firm fixed-price contract type, but duration and specific project details warrant further review. 4. Sector is primarily Defense, specifically U.S. Special Operations Command, indicating specialized equipment needs.

Value Assessment

Rating: good

The contract value of $31.6 million for craft building appears reasonable for specialized defense equipment. Benchmarking against similar large-scale naval or specialized vessel construction 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 After Exclusion of Sources'. This indicates that while initial sources may have been limited, the final award was open to all qualified bidders, promoting price discovery.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense assets.

Public Impact

Ensures readiness for U.S. Special Operations Command by providing critical craft. Supports specialized maritime capabilities essential for national security. The contract contributes to the defense industrial base and associated employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope changes or unforeseen technical challenges arise.
Dependence on a single contractor for a critical asset.
Long contract duration (773 days) increases exposure to market fluctuations.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition generally leads to better pricing.
Awarded to a known entity in the shipbuilding sector.

Sector Analysis

This contract falls within the Defense sector, specifically boat building for special operations. Spending in this area is driven by national security requirements and technological advancements in maritime assets. Benchmarks for similar specialized vessel construction can vary widely based on complexity and quantity.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight would typically involve contract management by the U.S. Special Operations Command, including monitoring performance, delivery schedules, and quality control to ensure compliance with contract terms and taxpayer value.

Related Government Programs

Boat Building
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Contract duration is lengthy (773 days).
Specific details of 'Exclusion of Sources' are not provided.
Potential for scope creep in complex defense projects.
Dependence on a single awardee for critical assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to VIGOR WORKS LLC. FULL RATE PRODUCTION (FRP) CRAFT 19-22

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 $31.6 million.

What is the period of performance?

Start: 2016-11-30. End: 2019-01-12.

What specific capabilities do these crafts provide to U.S. Special Operations Command, and how does this impact operational effectiveness?

These crafts likely provide specialized platforms for insertion, extraction, reconnaissance, or direct action missions in maritime or littoral environments. Their capabilities could range from high-speed maneuverability and stealth to carrying specialized equipment and personnel. The impact on operational effectiveness is significant, enabling SOCOM to execute complex missions with enhanced security and efficiency, directly supporting national security objectives.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' method, and how were they mitigated?

This method can introduce risks if the initial exclusion criteria were too narrow, potentially limiting the pool of qualified bidders and impacting price competition. Mitigation likely involved a robust justification for the exclusion and a clear, comprehensive solicitation process during the 'full and open' phase to attract a wide range of capable offerors, ensuring fair market value was achieved despite initial source limitations.

How does the firm fixed-price contract type ensure value for money, considering the 773-day duration?

The firm fixed-price (FFP) contract provides significant cost certainty for the government, as the contractor assumes most of the risk for cost overruns. For a long duration like 773 days, this FFP structure incentivizes the contractor to manage costs efficiently and deliver the product within the agreed-upon price. Value for money is realized if the initial price accurately reflects the scope and risk, and the contractor successfully meets quality and delivery 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

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: $31,557,822

Exercised Options: $31,557,822

Current Obligation: $31,557,822

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0080

IDV Type: IDC

Timeline