NOAA awards $6.6M for Okeanos Explorer dry dock repairs to JAG Alaska Inc

Contract Overview

Contract Amount: $6,639,612 ($6.6M)

Contractor: JAG Alaska Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-09-05

End Date: 2026-03-07

Contract Duration: 183 days

Daily Burn Rate: $36.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 5-YEAR DRY DOCK REPAIRS FOR NOAA SHIP OKEANOS EXPLORER

Place of Performance

Location: KETCHIKAN, KETCHIKAN GATEWAY County, ALASKA, 99901

State: Alaska Government Spending

Plain-Language Summary

Department of Commerce obligated $6.6 million to JAG ALASKA INC. for work described as: FY26 5-YEAR DRY DOCK REPAIRS FOR NOAA SHIP OKEANOS EXPLORER Key points: 1. Contract awarded for essential maintenance on a key NOAA research vessel. 2. JAG Alaska Inc. secured the award, indicating capacity in ship repair. 3. The contract duration is 183 days, aligning with typical dry dock schedules. 4. Fixed-price contract type aims to control costs for the government. 5. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 6. Geographic location of awardee in Alaska may influence logistics and cost.

Value Assessment

Rating: good

The award of $6.64 million for a 183-day dry dock repair of the NOAA Ship Okeanos Explorer appears reasonable given the specialized nature of vessel maintenance. While direct comparisons are difficult without more specific scope details, the firm fixed-price structure suggests an effort to establish a clear cost ceiling. The benchmark of $36,282 for 'Ship Building and Repairing' (NAICS 336611) represents a broad category; this specific contract's value should be assessed against similar NOAA vessel repair contracts to confirm optimal value.

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, often between 2-10. This method is used for procurements below the simplified acquisition threshold, aiming for efficiency. While not a full and open competition, SAP is designed to encourage competition among qualified small businesses and other vendors within a defined market segment.

Taxpayer Impact: Using SAP for this procurement likely resulted in a more streamlined process and potentially faster award, but the limited competition may have reduced the downward pressure on pricing compared to a full and open solicitation.

Public Impact

The primary beneficiary is NOAA, ensuring the operational readiness of the Okeanos Explorer, a vital platform for oceanographic research and exploration. The services delivered include essential dry dock repairs, maintenance, and potentially upgrades to the vessel's systems. The geographic impact is primarily within Alaska, where the repairs will likely take place, potentially supporting local maritime industry jobs. The contract supports the maritime repair workforce, including skilled tradespeople involved in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during dry dock, despite firm fixed-price structure.
Logistical challenges and increased costs associated with performing repairs in Alaska.
Limited competition under SAP could mean less aggressive pricing than a broader solicitation.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a specific company (JAG Alaska Inc.) suggests they possess the necessary certifications and capabilities for this specialized work.
The contract duration is clearly defined, allowing for project management and planning.

Sector Analysis

The ship building and repairing sector (NAICS 336611) is a specialized industry focused on the construction, repair, and conversion of ships and boats. This contract falls within the maintenance and repair segment of this sector. Spending in this area is critical for maintaining the operational capacity of government fleets, including research vessels like those operated by NOAA. Comparable spending benchmarks would involve looking at other contracts for similar vessel maintenance and repair services across federal agencies.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP), which often favors small businesses. However, it does not explicitly state if it was a small business set-aside. If JAG Alaska Inc. is a small business, this award directly supports the small business ecosystem. If not, the subcontracting opportunities for small businesses would be a key consideration for ensuring broader small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by NOAA contracting officers and program managers. As a purchase order, it falls under standard procurement regulations. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NOAA Ship Maintenance Contracts
Federal Maritime Repair Services
Government Vessel Dry Docking
Oceanographic Research Vessel Operations

Risk Flags

Potential for cost increases due to unforeseen repair needs.
Risk of schedule delays impacting NOAA's research mission.
Dependence on a limited number of bidders due to SAP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.6 million to JAG ALASKA INC.. FY26 5-YEAR DRY DOCK REPAIRS FOR NOAA SHIP OKEANOS EXPLORER

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 $6.6 million.

What is the period of performance?

Start: 2025-09-05. End: 2026-03-07.

What is the track record of JAG Alaska Inc. in performing similar federal contracts, particularly for NOAA or other maritime agencies?

A review of federal procurement data would be necessary to assess JAG Alaska Inc.'s track record. Key metrics to examine include the number and value of previous contracts awarded, the agencies they have served, and performance ratings if available. Specifically, identifying past contracts for ship repair, dry docking, or maintenance of vessels of similar size and complexity to the Okeanos Explorer would provide the most relevant context. A history of successful, on-time, and within-budget completions would indicate a lower performance risk for this current contract. Conversely, a pattern of delays, cost overruns, or negative performance reviews would raise concerns about the contractor's ability to meet NOAA's requirements.

How does the awarded price of $6.64 million compare to historical spending for similar dry dock repairs on NOAA vessels?

To benchmark the $6.64 million award, one would need to analyze historical contract data for dry dock repairs on NOAA vessels of comparable size, age, and operational complexity to the Okeanos Explorer. This analysis should consider the duration of the repairs (183 days) and the specific scope of work, if available. Factors such as inflation, market conditions at the time of previous awards, and geographic location of repairs can significantly influence costs. A comparison against multiple similar contracts, rather than a single data point, would provide a more robust assessment of whether this award represents good value for money or if it appears to be on the higher end of the cost spectrum for such services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential scope creep, unforeseen technical issues discovered during the dry dock process, and contractor performance issues (delays or quality defects). Given the firm fixed-price nature, unforeseen technical issues could lead to change orders, increasing the total cost if not managed carefully. Mitigation strategies typically involve thorough pre-award technical evaluations, detailed contract specifications, robust project management by NOAA, and clear communication channels with the contractor. The contract's defined duration and fixed price aim to mitigate cost and schedule risks, but vigilant oversight is crucial. Performance bonds and liquidated damages clauses, if included, also serve as risk mitigation tools.

How effective is the Simplified Acquisition Procedures (SAP) competition level in ensuring fair pricing for this type of specialized maritime service?

The effectiveness of SAP in ensuring fair pricing for specialized maritime services like dry dock repairs is variable. SAP is designed for procurements below a certain threshold (currently $250,000, but higher for certain construction/services) and typically involves fewer bidders than full and open competition. While it streamlines the process and can be efficient, the reduced number of bidders might limit price competition. For highly specialized services where the pool of qualified contractors is already limited, SAP might still yield competitive offers if multiple capable vendors are aware of and participate in the solicitation. However, the government relies heavily on market research and solicitation strategies within SAP to maximize price discovery.

What is the historical spending trend for ship repair and maintenance within NOAA or the broader Department of Commerce?

Analyzing historical spending trends for ship repair and maintenance within NOAA and the Department of Commerce would reveal patterns in investment for fleet readiness. This involves examining annual obligations for vessel maintenance, dry docking, and repair services over several fiscal years. Trends might indicate increasing or decreasing budgets allocated to these activities, potential shifts in contracting strategies (e.g., more long-term service contracts versus individual repair awards), and the average cost per vessel or per repair event. Understanding these trends provides context for the current $6.64 million award, helping to determine if it aligns with established spending levels or represents a significant deviation.

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: 1305M225Q0151

Offers Received: 6

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: $6,645,584

Exercised Options: $6,639,612

Current Obligation: $6,639,612

Actual Outlays: $4,958,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline