NOAA Awards $5.5M Contract to JAG Alaska for Ship Rainier Drydocking and Repair

Contract Overview

Contract Amount: $5,553,256 ($5.6M)

Contractor: JAG Alaska Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-08-27

End Date: 2026-02-03

Contract Duration: 160 days

Daily Burn Rate: $34.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP RAINIER

Place of Performance

Location: KETCHIKAN, KETCHIKAN GATEWAY County, ALASKA, 99901

State: Alaska Government Spending

Plain-Language Summary

Department of Commerce obligated $5.6 million to JAG ALASKA INC. for work described as: PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP RAINIER Key points: 1. JAG Alaska Inc. secured a $5.5M contract for essential drydocking and repair services for NOAA Ship Rainier. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller, efficient procurements. 3. The firm-fixed-price contract type aims to control costs for the 160-day repair period. 4. This expenditure falls within the Ship Building and Repairing sector, crucial for maintaining NOAA's operational fleet.

Value Assessment

Rating: good

The award of $5,553,256 appears reasonable for a 160-day drydocking and repair project for a NOAA vessel. Benchmarking against similar specialized maritime repair contracts would provide a more precise assessment, but the price seems within expected ranges for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders or a less formal solicitation process. While this can lead to faster awards, it may not always achieve the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential maintenance of a government asset, ensuring its continued operational capability. The use of SAP suggests an effort to balance efficiency with cost-effectiveness.

Public Impact

Ensures NOAA's research and operational capabilities by maintaining the Rainier's seaworthiness. Supports maritime infrastructure and specialized repair services within Alaska. Contributes to the readiness of the U.S. scientific research fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Ship Building and Repairing NAICS code (336611). Spending in this sector is vital for national security, scientific research, and commercial maritime activities. Benchmarks for similar vessel repair contracts can vary significantly based on vessel size, complexity of repairs, and location.

Small Business Impact

While the award was made to JAG Alaska Inc., the data does not specify if JAG Alaska Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this specific contract or the broader sector.

Oversight & Accountability

The award was made via a Purchase Order, a common method for simplified acquisitions. Oversight would focus on ensuring the repairs are completed to specification within the 160-day timeframe and budget, and that NOAA receives the full value of the contract.

Related Government Programs

Risk Flags

Tags

ship-building-and-repairing, department-of-commerce, ak, purchase-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.6 million to JAG ALASKA INC.. PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP RAINIER

Who is the contractor on this award?

The obligated recipient is JAG ALASKA 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 $5.6 million.

What is the period of performance?

Start: 2025-08-27. End: 2026-02-03.

What is the specific scope of work included in the drydocking and repair services?

The provided data indicates 'DRYDOCKING AND SHIP REPAIR' for NOAA Ship Rainier. A detailed scope of work would typically be outlined in the contract's statement of work, specifying tasks such as hull inspection and repair, machinery maintenance, system upgrades, and safety certifications required during the 160-day period.

How does the $5.5M cost compare to historical repair costs for similar NOAA vessels?

Without access to historical data for comparable NOAA vessel repairs, a direct comparison is difficult. However, $5.5M for a 160-day drydocking and repair project for a vessel of the Rainier's type is generally within the expected range for specialized maritime services. Factors like the vessel's age, specific repair needs, and shipyard location influence costs.

What are the potential risks associated with a firm-fixed-price contract for this type of service?

The primary risk with a firm-fixed-price contract is that the contractor (JAG Alaska Inc.) may incur costs exceeding the agreed price, potentially leading to reduced profit or financial strain. Conversely, if costs are lower than anticipated, the contractor benefits. For NOAA, the risk is that unforeseen issues discovered during repairs might necessitate contract modifications or scope changes, potentially increasing the total cost.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M225Q0145

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3306 SORREL RD, SEWARD, AK, 99664

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

Financial Breakdown

Contract Ceiling: $5,560,274

Exercised Options: $5,553,256

Current Obligation: $5,553,256

Actual Outlays: $1,632,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2025-08-27

Current End Date: 2026-02-03

Potential End Date: 2026-02-03 00:00:00

Last Modified: 2026-03-03

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