NOAA awards $7.75M contract for drydocking repairs to NOAA Ship Oscar Elton Sette, with a 159-day performance period

Contract Overview

Contract Amount: $7,752,784 ($7.8M)

Contractor: Lake Union Drydock Company

Awarding Agency: Department of Commerce

Start Date: 2024-09-13

End Date: 2025-02-19

Contract Duration: 159 days

Daily Burn Rate: $48.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOAA MARINE OPERATIONS CENTER PACIFIC ISLANDS ON BEHALF OF OMAO IS SOLICITING DRYDOCKING REPAIRS TO NOAA SHIP OSCAR ELTON SETTE

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98102

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $7.8 million to LAKE UNION DRYDOCK COMPANY for work described as: NOAA MARINE OPERATIONS CENTER PACIFIC ISLANDS ON BEHALF OF OMAO IS SOLICITING DRYDOCKING REPAIRS TO NOAA SHIP OSCAR ELTON SETTE Key points: 1. The contract value represents a significant investment in maintaining the operational readiness of a key NOAA research vessel. 2. Competition dynamics for this specialized ship repair service are crucial for ensuring fair pricing and timely execution. 3. Potential risks include schedule delays or unforeseen repair complexities that could impact the vessel's availability. 4. The contract's fixed-price nature aims to control costs, but requires careful scope management. 5. This award positions the contractor within the critical maritime support sector for federal agencies. 6. The duration of the repairs suggests substantial work is required to bring the vessel up to standard.

Value Assessment

Rating: good

The contract value of $7.75 million for drydocking repairs appears reasonable given the scope of work for a NOAA research vessel. Benchmarking against similar specialized maritime repair contracts would provide a more precise assessment, but the fixed-price structure suggests an effort to control costs. The duration of 159 days indicates a comprehensive overhaul, which typically commands a significant price. The award amount is within the expected range for such critical infrastructure maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach likely due to the specialized nature of the services and the estimated value. While four bids were received, the specific details of the solicitation and the reasons for limiting the competition are not fully detailed. Limited competition can sometimes lead to higher prices compared to full and open competition, but it can also expedite the procurement process for specialized needs.

Taxpayer Impact: Limited competition may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. However, it ensures a timely award for essential vessel maintenance.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific research missions, ensuring the operational capability of the NOAA Ship Oscar Elton Sette. The services delivered include essential drydocking repairs, ensuring the structural integrity and operational readiness of the vessel. The geographic impact is focused on the Pacific Islands region, where the vessel operates, supporting critical environmental monitoring and research. Workforce implications include employment for skilled trades in the shipbuilding and repairing sector, particularly at the awarded contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the firm-fixed-price contract.
Risk of schedule slippage impacting NOAA's research and operational timelines.
Limited competition may have resulted in a higher price than a fully open solicitation.
Dependence on a single contractor for critical, specialized repair services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multiple bids received (4) indicate some level of market interest and potential for competitive pricing.
The contract specifies a clear performance period, aiding in schedule management.
The vessel's repair is essential for NOAA's ongoing scientific missions.

Sector Analysis

The shipbuilding and repairing industry (NAICS 336611) is a critical sector supporting national defense, maritime commerce, and scientific research. Federal contracts in this area are often specialized and require significant technical expertise. NOAA's need for drydocking repairs for its research fleet falls within this specialized segment, where maintenance and repair costs can be substantial due to the complex nature of marine vessels. Comparable spending benchmarks would involve analyzing other federal contracts for similar vessel maintenance and repair services.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses may exist depending on the prime contractor's sourcing strategy, but there is no explicit requirement noted in the provided data. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce and the National Oceanic and Atmospheric Administration (NOAA). The firm-fixed-price contract type provides a degree of cost control. Accountability measures would be tied to the contractor's adherence to the contract's scope of work, schedule, and quality standards. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NOAA Ship Maintenance and Repair
US Coast Guard Vessel Drydocking
Military Sealift Command Ship Repair Contracts
Naval Sea Systems Command (NAVSEA) Ship Maintenance

Risk Flags

Potential for schedule delays
Risk of unforeseen repair issues
Limited competition concerns
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $7.8 million to LAKE UNION DRYDOCK COMPANY. NOAA MARINE OPERATIONS CENTER PACIFIC ISLANDS ON BEHALF OF OMAO IS SOLICITING DRYDOCKING REPAIRS TO NOAA SHIP OSCAR ELTON SETTE

Who is the contractor on this award?

The obligated recipient is LAKE UNION DRYDOCK COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2024-09-13. End: 2025-02-19.

What is the track record of Lake Union Drydock Company with federal contracts, particularly for NOAA or similar agencies?

Lake Union Drydock Company has a history of performing maritime repair and construction services. A detailed review of their federal contract history, accessible through databases like SAM.gov or FPDS, would reveal their performance on previous contracts, including any awards from NOAA, the Department of Defense, or other maritime-focused agencies. This analysis would identify any patterns of successful contract completion, on-time delivery, and adherence to budget. It would also highlight any past performance issues, disputes, or contract terminations that could indicate potential risks for this current award. Understanding their experience with vessels of similar size and complexity to the NOAA Ship Oscar Elton Sette is crucial for assessing their capability.

How does the awarded amount of $7.75 million compare to historical drydocking repairs for NOAA research vessels?

To benchmark the $7.75 million award, a comparative analysis of historical drydocking and major repair contracts for NOAA research vessels of similar size and age is necessary. This would involve searching federal procurement databases for contracts awarded over the past 5-10 years. Key metrics to compare include the contract value, duration of repairs, scope of work (e.g., hull work, machinery overhauls, system upgrades), and the type of contract (e.g., fixed-price, cost-plus). If similar vessels underwent comparable repairs for significantly less or more, it would indicate whether this award represents a favorable or unfavorable value for the government. Factors like inflation and the increasing complexity of vessel systems also need to be considered in the comparison.

What are the primary risks associated with drydocking repairs for a vessel like the NOAA Ship Oscar Elton Sette?

The primary risks associated with drydocking repairs for a vessel like the NOAA Ship Oscar Elton Sette are multifaceted. Schedule delays are a significant concern, often stemming from the discovery of unforeseen structural damage or equipment failures once the vessel is out of the water and accessible. Cost overruns, even in a firm-fixed-price contract, can occur if the scope of work needs to be expanded due to these discoveries, potentially leading to change orders. Technical risks include the availability of specialized parts and skilled labor required for complex repairs. Operational risks involve the vessel's extended absence from its research mission, impacting NOAA's scientific objectives and data collection. Furthermore, the quality of the repair work itself is critical; substandard work could lead to future failures and safety hazards.

What is the expected impact of these repairs on NOAA's operational capabilities and research output?

These repairs are essential for maintaining the operational readiness and safety of the NOAA Ship Oscar Elton Sette, a critical asset for NOAA's scientific research and environmental monitoring missions. The 159-day drydocking period means the vessel will be out of service for approximately five months. During this time, NOAA's ability to conduct planned research expeditions in the Pacific Islands region will be curtailed or require reallocation to other vessels, potentially impacting research timelines and data acquisition. Upon completion, the repairs are expected to enhance the vessel's reliability, efficiency, and safety, ensuring its continued service for years to come and enabling the resumption and future execution of vital scientific endeavors.

How has NOAA's spending on ship maintenance and repair evolved over the past five years?

Analyzing NOAA's spending on ship maintenance and repair over the past five years would require accessing historical contract data. This would involve aggregating contract awards related to vessel upkeep, drydocking, major overhauls, and routine maintenance across NOAA's fleet. Trends to look for include the total annual expenditure, the average cost per repair or drydocking event, the number of contracts awarded, and the distribution of spending among different types of repairs and vessels. Understanding these historical patterns can help contextualize the current $7.75 million award, revealing whether NOAA's investment in fleet readiness is increasing, decreasing, or remaining stable, and whether current spending aligns with past budgetary allocations for such critical infrastructure.

What specific types of repairs are anticipated under this $7.75 million contract for the NOAA Ship Oscar Elton Sette?

While the provided data specifies 'drydocking repairs,' the exact nature of the work is not detailed. Typically, drydocking involves removing the vessel from the water to allow for hull inspection and maintenance, including cleaning, painting, and repair of any damage below the waterline. It often includes inspection and servicing of propulsion systems, rudders, propellers, and auxiliary machinery. Other anticipated repairs could involve upgrades to navigation or communication systems, replacement of aging components, steelwork repairs, and certification of safety equipment. A comprehensive list of specific tasks would be detailed in the Statement of Work (SOW) attached to the contract, which is not provided here but would be crucial for a full understanding of the scope and value.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M224Q0182

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1515 FAIRVIEW AVE E, SEATTLE, WA, 98102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,773,784

Exercised Options: $7,752,784

Current Obligation: $7,752,784

Actual Outlays: $7,752,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline