Commerce awards $6.3M for NOAA ship repairs, with Detyens Shipyards Inc. securing the contract

Contract Overview

Contract Amount: $6,327,415 ($6.3M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Commerce

Start Date: 2025-11-05

End Date: 2026-02-28

Contract Duration: 115 days

Daily Burn Rate: $55.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 5-YEAR DRYDOCK REPAIRS ON THE NOAA SHIP NANCY FOSTER (OMAO-EXMPT-049)

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $6.3 million to DETYENS SHIPYARDS INC for work described as: FY26 5-YEAR DRYDOCK REPAIRS ON THE NOAA SHIP NANCY FOSTER (OMAO-EXMPT-049) Key points: 1. The contract value represents a significant investment in maintaining critical NOAA assets. 2. Competition dynamics for this specialized service are crucial for ensuring fair pricing. 3. Performance history of the contractor will be a key indicator of successful execution. 4. The repair duration suggests a focused scope of work on the NOAA Ship Nancy Foster. 5. This award falls within the broader context of federal investments in maritime infrastructure. 6. The fixed-price nature of the contract aims to control costs and manage financial risk.

Value Assessment

Rating: good

The contract value of $6.3 million for drydock repairs on the NOAA Ship Nancy Foster appears reasonable given the specialized nature of maritime vessel maintenance. Benchmarking against similar drydocking contracts for research vessels of comparable size and complexity would provide a more precise value assessment. The firm fixed-price structure suggests an effort to establish clear cost expectations upfront, which is generally positive for value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process likely involving multiple bids. The presence of four bidders suggests a healthy level of interest and competition for this type of specialized service. This level of competition is generally expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers, as it helps ensure that the government is not overpaying for the necessary drydock repairs and associated services.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific research missions, which rely on the operational readiness of the NOAA Ship Nancy Foster. The services delivered include essential drydock repairs, ensuring the vessel's structural integrity, operational efficiency, and safety. The geographic impact is localized to the repair facility in South Carolina, but the operational impact is national, supporting NOAA's research across various oceanic regions. The contract supports skilled labor within the shipbuilding and repairing sector, contributing to the maritime industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting NOAA's research timelines if repairs exceed the contracted duration.
Risk of unforeseen issues arising during drydocking that could lead to change orders and increased costs, despite the fixed-price structure.
Ensuring the quality of repairs meets stringent maritime safety and operational standards.

Positive Signals

The contract is firm fixed-price, providing cost certainty for the government.
The competitive award process suggests a fair market price was likely achieved.
The contractor, Detyens Shipyards Inc., has experience in ship repair, indicating a baseline capability.
The defined period of performance (November 2025 to February 2026) provides a clear timeline for completion.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and governmental maritime needs. Federal spending in this sector often involves maintenance, construction, and modernization of vessels. This contract for drydock repairs fits within the broader category of essential maintenance services required to keep specialized government fleets operational, ensuring continued scientific research and operational capabilities.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and awarded as a Purchase Order. There is no explicit mention of small business set-asides or subcontracting goals for this specific award. Further analysis would be needed to determine if small businesses were involved in the competitive bidding process or if subcontracting opportunities were present.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. The agency is responsible for monitoring contract performance, ensuring adherence to specifications, and managing payments. As a purchase order, it may be subject to standard procurement regulations and internal agency oversight processes. Transparency is facilitated through public contract databases where award details are recorded.

Related Government Programs

NOAA Fleet Operations
Maritime Vessel Maintenance
Shipbuilding and Repair Services
Federal Fleet Management

Risk Flags

Potential for schedule overruns impacting NOAA research operations.
Risk of unforeseen repair requirements leading to cost increases despite fixed-price contract.
Ensuring adherence to stringent maritime safety and environmental regulations during repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.3 million to DETYENS SHIPYARDS INC. FY26 5-YEAR DRYDOCK REPAIRS ON THE NOAA SHIP NANCY FOSTER (OMAO-EXMPT-049)

Who is the contractor on this award?

The obligated recipient is DETYENS SHIPYARDS INC.

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 $6.3 million.

What is the period of performance?

Start: 2025-11-05. End: 2026-02-28.

What is the track record of Detyens Shipyards Inc. in performing similar drydock repair contracts for government vessels?

Detyens Shipyards Inc. has a history of performing ship repair and maintenance services. To assess their track record specifically for NOAA vessels or similar research/oceanographic ships, a review of past performance evaluations and contract awards would be necessary. This would include examining the timeliness, quality of work, and adherence to budget on previous projects. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific performance databases could provide insights into their past performance, including any instances of disputes, contract modifications, or performance issues that might indicate potential risks for this current contract.

How does the awarded amount of $6.3 million compare to the estimated cost or budget for these drydock repairs?

The provided data indicates an award amount of $6,327,415. Without access to the government's independent government cost estimate (IGCE) or the initial budget allocated for these specific repairs, a direct comparison is not possible. However, the fact that the contract was competed under SAP and received four bids suggests that the award amount is likely within a reasonable range expected by the market. A comprehensive value assessment would involve comparing this award to the IGCE, if available, and to historical costs for similar repair work on NOAA vessels.

What are the primary risks associated with drydocking and repairing a vessel like the NOAA Ship Nancy Foster?

The primary risks associated with drydocking and repairing a vessel like the NOAA Ship Nancy Foster include unforeseen structural issues discovered once the vessel is out of the water, which could necessitate additional work and increase costs beyond the initial fixed-price agreement. Schedule delays are another significant risk, potentially impacting NOAA's research missions. Furthermore, ensuring the quality of repairs meets stringent maritime safety and operational standards is critical. There's also a risk related to the availability of specialized parts or skilled labor, which could affect project timelines and execution. The firm fixed-price contract aims to mitigate cost risks, but scope creep or discovery of latent defects can still pose challenges.

What is the historical spending pattern for drydocking and repairs for the NOAA Ship Nancy Foster or similar NOAA vessels?

Analyzing historical spending for the NOAA Ship Nancy Foster and comparable NOAA vessels would provide valuable context for the current $6.3 million award. This would involve examining past contract awards for drydocking, major overhauls, and significant repair work over the last 5-10 years. Key metrics to review would include the frequency of drydocking, the average cost per event, the duration of repairs, and the contractors involved. Significant deviations from historical spending patterns, either higher or lower, could signal changes in vessel condition, market rates, or the scope of work required, warranting further investigation.

How does the competition level (4 bidders) for this contract influence the final price and potential for cost savings?

A competition level involving four bidders for this drydock repair contract is generally considered healthy and indicative of a reasonably competitive market for these specialized services. A higher number of bidders typically exerts greater downward pressure on prices, as contractors vie for the award. This competition helps ensure that the government receives a fair market price and reduces the risk of paying an inflated cost. The presence of multiple qualified bidders suggests that Detyens Shipyards Inc. likely submitted a competitive bid to secure the contract, potentially leading to cost savings for the government compared to a sole-source or limited-competition scenario.

What is the significance of the contract type (Firm Fixed Price) in managing the financial aspects of this repair project?

The Firm Fixed Price (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor, Detyens Shipyards Inc. Under an FFP agreement, the total price is fixed and not subject to adjustment based on the contractor's cost experience. This provides the government, specifically NOAA, with a high degree of cost certainty and predictability. While it shifts the risk of cost overruns to the contractor, it also means that any cost savings realized by the contractor do not benefit the government. This structure is generally preferred for well-defined scopes of work, like drydock repairs, where risks can be reasonably assessed upfront.

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: 1305M225Q0143

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Detyens Shipyards, Inc.

Address: 1670 DRYDOCK AVE BIDG 236, N CHARLESTON, SC, 29405

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,354,002

Exercised Options: $6,327,415

Current Obligation: $6,327,415

Actual Outlays: $5,369,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline