DOI awards $6M contract for R/V Kiyi haul-out, Shipbuilders of Wisconsin to perform work

Contract Overview

Contract Amount: $605,695 ($605.7K)

Contractor: Shipbuilders of Wisconsin, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-10-01

End Date: 2026-05-08

Contract Duration: 219 days

Daily Burn Rate: $2.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HAULOUT OF THE R/V KIYI

Place of Performance

Location: MANITOWOC, MANITOWOC County, WISCONSIN, 54220

State: Wisconsin Government Spending

Plain-Language Summary

Department of the Interior obligated $605,695 to SHIPBUILDERS OF WISCONSIN, INC. for work described as: HAULOUT OF THE R/V KIYI Key points: 1. Contract value appears reasonable for specialized vessel maintenance. 2. Competition was limited, suggesting potential for price negotiation improvements. 3. No immediate risk indicators identified, but performance history is key. 4. Contract duration aligns with typical major vessel repair cycles. 5. This contract falls within the broader maritime support services sector. 6. Small business participation is not explicitly mandated but could be explored.

Value Assessment

Rating: good

The contract value of $6,056,950 for the haul-out of the R/V Kiyi appears to be within a reasonable range for specialized maritime services. Benchmarking against similar large vessel repair or maintenance contracts would provide a more precise value-for-money assessment. The fixed-price nature of the contract shifts some risk to the contractor, which can be beneficial for the government if costs are well-managed by the awardee. Further analysis of the scope of work against the price is recommended.

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. While the specific number of bids received isn't detailed, SAP is generally used for procurements below certain thresholds where full and open competition might be less efficient. The limited competition could mean that the government did not achieve the most competitive pricing possible, as fewer vendors were incentivized to offer their lowest bids.

Taxpayer Impact: Limited competition under SAP may result in higher costs for taxpayers compared to a fully competed large-scale procurement, as the government may not have benefited from the broadest possible price discovery.

Public Impact

The U.S. Geological Survey (USGS) will benefit from the maintenance of its research vessel, R/V Kiyi. The services delivered include the haul-out and likely associated maintenance and repair activities for the vessel. The geographic impact is primarily in Wisconsin, where Shipbuilders of Wisconsin, Inc. is located. The contract supports skilled labor in the shipbuilding and repair industry within Wisconsin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repairs are extensive and not adequately covered by the fixed-price agreement.
Dependence on a single contractor for a critical vessel operation.
Limited competition may have resulted in a less than optimal price.
Scope creep could occur if additional work is added without proper modification procedures.
Timeliness of completion is crucial for the vessel's operational schedule.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Contractor is based in Wisconsin, potentially supporting regional economic interests.
The vessel's operational status will be maintained, ensuring continued scientific research capabilities.
The contract duration is defined, providing a clear timeline for the work.

Sector Analysis

This contract falls within the broader maritime industry, specifically the ship building and repair sector. This sector is characterized by specialized labor, significant capital investment, and often involves complex engineering and maintenance requirements for vessels. The market size for ship repair is substantial, driven by commercial shipping, naval operations, and research vessel fleets. This contract represents a specific instance of government procurement within this specialized niche, supporting the operational readiness of a scientific research vessel.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Shipbuilders of Wisconsin, Inc., may engage small businesses as subcontractors for specific components or services, contributing indirectly to the small business ecosystem. Further investigation into the contractor's subcontracting plan would be needed for a complete assessment.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Geological Survey (USGS) contracting officer and their representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified services within the agreed-upon price and timeframe. Transparency is generally maintained through contract award databases and reporting requirements. The extent of Inspector General jurisdiction would depend on the specific nature of any potential issues or investigations that may arise.

Related Government Programs

Federal Research Vessel Operations
Maritime Vessel Maintenance and Repair
Shipbuilding and Repair Services
Government Fleet Support

Risk Flags

Limited Competition
Potential for Cost Overruns
Schedule Adherence Critical

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $605,695 to SHIPBUILDERS OF WISCONSIN, INC.. HAULOUT OF THE R/V KIYI

Who is the contractor on this award?

The obligated recipient is SHIPBUILDERS OF WISCONSIN, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $605,695.

What is the period of performance?

Start: 2025-10-01. End: 2026-05-08.

What is the track record of Shipbuilders of Wisconsin, Inc. with federal contracts?

A review of federal contract databases would be necessary to fully assess the track record of Shipbuilders of Wisconsin, Inc. with government agencies. This would involve examining past performance on similar contracts, including any history of delays, cost overruns, or quality issues. Understanding their experience with vessel haul-outs and major repairs, particularly for research vessels, would provide crucial context for evaluating their capability to successfully execute this current contract. Without specific historical data, it's difficult to definitively gauge their reliability and past performance.

How does the awarded price compare to similar vessel haul-out contracts?

To benchmark the value for money, the awarded price of $6,056,950 needs to be compared against similar contracts for the haul-out and maintenance of research vessels of comparable size and complexity. Factors such as the vessel's age, specific repair requirements, and the geographic location of the shipyard can influence pricing. A detailed analysis would involve searching databases for recent awards for similar services, adjusting for inflation and regional cost differences. If this price is significantly higher or lower than comparable contracts, it would warrant further investigation into the reasons behind the variance.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential cost overruns if unforeseen structural issues or extensive repairs are discovered during the haul-out, which could strain the firm-fixed-price agreement. There's also a risk related to the schedule, as delays in the haul-out process could impact the R/V Kiyi's research mission timeline. Furthermore, the limited competition raises a risk that the government may not have secured the most cost-effective solution. The contractor's ability to manage specialized labor and ensure quality workmanship throughout the process also presents a performance risk.

How effective is the Simplified Acquisition Procedure (SAP) for procuring specialized maritime services?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for smaller value acquisitions, aiming for efficiency and reduced administrative burden. For specialized maritime services like vessel haul-outs, SAP can be effective if the scope is well-defined and the estimated cost falls within SAP thresholds. However, SAP often involves limited competition, which may not yield the best prices or the widest range of qualified vendors, especially for complex or high-value services. The effectiveness hinges on whether the specific requirements can be adequately addressed within the SAP framework without compromising quality or cost-competitiveness.

What is the historical spending pattern for R/V Kiyi maintenance?

Analyzing historical spending patterns for the R/V Kiyi's maintenance would provide valuable context for this current contract. This would involve reviewing past contracts for similar services, such as dry-docking, major overhauls, and routine maintenance. Understanding the frequency and cost of these activities over the vessel's lifecycle can help identify trends, potential cost-saving opportunities, or recurring issues. It can also inform future budget planning and highlight whether current spending aligns with historical norms or represents a significant deviation.

What are the implications of a Firm Fixed Price (FFP) contract for this type of service?

A Firm Fixed Price (FFP) contract for vessel haul-out services places the primary responsibility for cost control on the contractor, Shipbuilders of Wisconsin, Inc. This provides the U.S. Geological Survey (USGS) with cost certainty, as the price is fixed regardless of the contractor's actual costs. However, it also means that the contractor bears the risk of cost overruns. For complex services like a haul-out, where unforeseen issues can arise, the contractor may build in a contingency premium into their price. The effectiveness of FFP here depends on the thoroughness of the initial scope definition and the contractor's ability to accurately estimate and manage all associated costs.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140G0225R0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1811 SPRING ST, MANITOWOC, WI, 54220

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

Financial Breakdown

Contract Ceiling: $605,695

Exercised Options: $605,695

Current Obligation: $605,695

Actual Outlays: $129,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline