NOAA awards $7.3M contract for ship repair to Detyens Shipyards Inc., with a 198-day performance period

Contract Overview

Contract Amount: $7,309,188 ($7.3M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Commerce

Start Date: 2025-09-04

End Date: 2026-03-21

Contract Duration: 198 days

Daily Burn Rate: $36.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP HENRY BIGELOW OMAO-EXMPT-053

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $7.3 million to DETYENS SHIPYARDS INC for work described as: PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP HENRY BIGELOW OMAO-EXMPT-053 Key points: 1. The contract value represents a significant investment in maintaining NOAA's research vessel capabilities. 2. Competition dynamics for this specialized service are crucial for ensuring fair pricing and quality. 3. The fixed-price contract type aims to mitigate cost overruns for the government. 4. Performance duration of 198 days indicates a substantial scope of work for the awarded shipyard. 5. The award to Detyens Shipyards Inc. positions them as a key player in NOAA's maritime support. 6. The North American Industry Classification System (NAICS) code 336611 suggests a focus on shipbuilding and repair.

Value Assessment

Rating: good

The contract value of $7.3 million for drydocking and ship repair appears reasonable given the scope of work for a NOAA vessel. Benchmarking against similar repair contracts for research vessels of comparable size and complexity would provide a more precise assessment. The firm fixed-price structure suggests an expectation of predictable costs, which is generally favorable for the government. However, without detailed repair specifications, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a procurement process designed for smaller value contracts. While the exact number of bidders is not specified, SAP typically involves a limited number of quotes or proposals. This approach is intended to be efficient but may not always yield the most competitive pricing compared to full and open competition. The limited competition could potentially lead to higher prices than if a broader range of shipyards had been solicited.

Taxpayer Impact: The limited competition under SAP means taxpayers may not be benefiting from the lowest possible price achievable through a wider bidding process. However, the efficiency of SAP can also lead to cost savings in the procurement process itself.

Public Impact

The primary beneficiary is NOAA, ensuring the operational readiness of the research vessel Henry Bigelow. This contract directly supports maritime research and data collection activities conducted by NOAA. The services delivered include essential drydocking and repair, crucial for vessel safety and functionality. The geographic impact is centered around the location of Detyens Shipyards Inc. in South Carolina, supporting regional maritime industry. Workforce implications include employment opportunities for skilled trades within the shipbuilding and repair sector at the awarded facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price nature.
Limited competition may result in a less than optimal price for taxpayers.
Dependence on a single contractor for critical repair services could pose a risk if performance issues emerge.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established shipyard like Detyens suggests a level of confidence in their capabilities.
The contract duration indicates a comprehensive scope of work, likely addressing significant maintenance needs.

Sector Analysis

The shipbuilding and repair sector (NAICS 336611) is a specialized industry critical for maintaining naval and research fleets. This contract falls within the broader maritime services industry, which is essential for national security and scientific endeavors. Comparable spending benchmarks would involve analyzing other contracts for similar vessel repairs, considering factors like vessel size, age, and the complexity of required maintenance. The market for specialized ship repair can be concentrated, with a few key players dominating.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the awardee is Detyens Shipyards Inc., a known entity in the shipbuilding and repair industry. There is no explicit information regarding subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether Detyens utilizes small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed repair specifications and progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NOAA Ship Maintenance Contracts
US Coast Guard Vessel Repair
Navy Shipyard Services
Maritime Research Vessel Operations
Federal Drydocking Services

Risk Flags

Potential for schedule delays impacting NOAA operations.
Risk of unforeseen repair complexities increasing costs.
Limited competition may affect price optimality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $7.3 million to DETYENS SHIPYARDS INC. PROVIDE DRYDOCKING AND SHIP REPAIR TO NOAA SHIP HENRY BIGELOW OMAO-EXMPT-053

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 $7.3 million.

What is the period of performance?

Start: 2025-09-04. End: 2026-03-21.

What is the historical performance record of Detyens Shipyards Inc. with federal contracts, particularly with NOAA?

Detyens Shipyards Inc. has a history of performing federal contracts, including work with the U.S. Navy and other maritime agencies. Analyzing their past performance with NOAA specifically would involve reviewing contract databases for previous awards, on-time delivery rates, and any reported performance issues or disputes. A strong track record with similar agencies suggests a higher likelihood of successful contract completion. However, a detailed review of past performance metrics, including any quality control issues or contract modifications, is necessary for a comprehensive assessment.

How does the awarded price of $7.3 million compare to similar drydocking and repair contracts for NOAA research vessels?

To benchmark the $7.3 million award, one would need to identify comparable contracts for research vessels of similar size, age, and complexity that NOAA or other federal agencies have awarded. Factors such as the extent of repairs (e.g., hull work, engine overhauls, system upgrades), the duration of the drydocking period, and the specific shipyard's location and overhead costs influence pricing. Without access to detailed repair scopes and specific benchmark data, a precise comparison is difficult. However, the firm fixed-price nature suggests the government sought to establish a clear cost ceiling.

What are the primary risks associated with this specific ship repair contract, and how are they being mitigated?

Key risks include potential for unforeseen structural or mechanical issues discovered during the repair process, which could lead to cost increases despite the fixed-price contract if not managed through contract clauses or change orders. Schedule delays are another risk, impacting NOAA's operational readiness. Mitigation strategies include the firm fixed-price structure, which incentivizes the contractor to manage costs efficiently. NOAA's oversight, detailed specifications, and potentially performance bonds also serve as risk mitigation tools. The contractor's experience and quality control processes are critical in managing technical risks.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring competitive pricing for specialized maritime services like ship repair?

SAP is designed for efficiency and speed in procuring goods and services below certain dollar thresholds. While it can be effective for routine or less complex procurements, its effectiveness in ensuring maximum price competition for highly specialized services like ship repair can be limited. The pool of qualified shipyards capable of performing such work may be small, and SAP typically involves soliciting a limited number of quotes. This can lead to less aggressive pricing compared to full and open competition, where a broader market is engaged. The specific competition level achieved under this SAP award would determine its effectiveness.

What is the historical spending trend for NOAA's ship maintenance and repair services over the past five years?

Analyzing NOAA's historical spending on ship maintenance and repair would involve aggregating contract data from relevant agencies and fiscal years. This would reveal trends in overall expenditure, the average value of repair contracts, and the distribution of awards among different shipyards. Understanding these patterns can help contextualize the current $7.3 million award, indicating whether it aligns with historical spending levels or represents a significant deviation. Such analysis could also highlight any shifts in contracting strategies or the emergence of new service providers.

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

Offers Received: 2

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: $7,355,136

Exercised Options: $7,309,188

Current Obligation: $7,309,188

Actual Outlays: $3,075,172

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline