Coast Guard awards $5.7M for 2 motor lifeboats under Service Life Extension Program

Contract Overview

Contract Amount: $5,723,517 ($5.7M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-30

End Date: 2021-10-29

Contract Duration: 425 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS DELIVERY ORDER WILL SUPPORT THE ACQUISITION OF CLIN 1004 AND SUBCLINS 1007AA, 1011AA, 1011AB, 1012AB, 1012AC, 1012AD AND 1012AE FOR 2 MOTOR LIFE BOATS (MLBS UNDER THE SERVICE LIFE EXTENSION PROGRAM (SLEP).

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.7 million to BIRDON AMERICA INC for work described as: THIS DELIVERY ORDER WILL SUPPORT THE ACQUISITION OF CLIN 1004 AND SUBCLINS 1007AA, 1011AA, 1011AB, 1012AB, 1012AC, 1012AD AND 1012AE FOR 2 MOTOR LIFE BOATS (MLBS UNDER THE SERVICE LIFE EXTENSION PROGRAM (SLEP). Key points: 1. Contract focuses on extending the operational life of critical maritime assets. 2. The acquisition supports specific sub-clin components for enhanced functionality. 3. This delivery order is part of a larger Service Life Extension Program. 4. The contract type is Firm Fixed Price, indicating defined cost parameters. 5. The duration of the order is 425 days, aligning with project timelines. 6. The primary contractor, Birdon America Inc., is responsible for the delivery.

Value Assessment

Rating: good

The total award of $5.72 million for two motor lifeboats under a Service Life Extension Program appears reasonable given the scope of work. While specific cost breakdowns for individual components are not provided, the price is benchmarked against similar maritime vessel refurbishment contracts. The Service Life Extension Program aims to provide cost-effective solutions by extending the usability of existing assets rather than procuring entirely new ones, suggesting a value-for-money approach.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the competitive nature of the award suggests that the U.S. Coast Guard sought the best value and pricing available in the market. This process is designed to foster price discovery and ensure fair market pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives competitive pricing for its acquisitions.

Public Impact

The U.S. Coast Guard benefits from extended operational capability of its motor lifeboats. Services delivered include the acquisition of specific components for lifeboats. The geographic impact is likely focused on operational areas of the U.S. Coast Guard. The contract supports the maritime security and safety missions of the Coast Guard. Workforce implications may include specialized labor for ship building and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise during refurbishment.
Dependence on a single contractor for critical component delivery.
Risk of schedule delays impacting operational readiness if the contractor faces production challenges.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type limits cost uncertainty for the government.
Focus on extending the life of existing assets is a cost-effective strategy.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, specifically supporting maritime vessel maintenance and upgrades. The market for specialized maritime components and services is competitive, with several key players. The U.S. Coast Guard's Service Life Extension Program (SLEP) is a common strategy across government agencies to maximize the return on investment for expensive assets like vessels, often involving significant refurbishment and component upgrades.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless they are subcontractors. The prime contractor, Birdon America Inc., is not identified as a small business. Further analysis would be needed to determine subcontracting plans and their adherence to small business utilization goals.

Oversight & Accountability

Oversight for this delivery order would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are embedded in the Firm Fixed Price contract type, which holds the contractor responsible for delivering the specified goods within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns or allegations of fraud, waste, or abuse arise.

Related Government Programs

U.S. Coast Guard Fleet Modernization Programs
Maritime Security and Safety Equipment Procurement
Naval Vessel Service Life Extension Programs
Shipbuilding and Repair Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen issues
Dependence on contractor performance for critical assets

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.7 million to BIRDON AMERICA INC. THIS DELIVERY ORDER WILL SUPPORT THE ACQUISITION OF CLIN 1004 AND SUBCLINS 1007AA, 1011AA, 1011AB, 1012AB, 1012AC, 1012AD AND 1012AE FOR 2 MOTOR LIFE BOATS (MLBS UNDER THE SERVICE LIFE EXTENSION PROGRAM (SLEP).

Who is the contractor on this award?

The obligated recipient is BIRDON AMERICA INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2020-08-30. End: 2021-10-29.

What is the track record of Birdon America Inc. with the U.S. Coast Guard and similar maritime contracts?

Birdon America Inc. has a history of working with the U.S. Coast Guard and other government agencies on maritime contracts. Their experience includes vessel construction, repair, and modernization. For instance, they have been involved in previous contracts for Coast Guard cutters and other specialized vessels. Their performance on these prior engagements, including adherence to schedule, budget, and quality standards, would be a key indicator of their capability to successfully execute this current delivery order. A review of past performance evaluations and any contract disputes or awards would provide further insight into their reliability as a contractor for this specific life extension project.

How does the cost of this life extension compare to the cost of procuring new motor lifeboats?

The Service Life Extension Program (SLEP) is fundamentally designed to be more cost-effective than procuring entirely new assets. While the exact figures for new lifeboats are not provided, refurbishing and extending the life of existing vessels typically involves significantly lower capital expenditure. The $5.72 million award for two lifeboats under SLEP suggests an investment in upgrading and overhauling current equipment. This approach avoids the full lifecycle costs associated with new builds, including design, manufacturing, and initial outfitting. The value proposition of SLEP lies in achieving a substantial portion of a new asset's capability at a fraction of the cost, thereby optimizing taxpayer resources.

What are the primary risks associated with extending the service life of maritime vessels like these motor lifeboats?

Extending the service life of maritime vessels carries several inherent risks. A primary concern is the potential for unforeseen structural issues or component failures discovered during the refurbishment process, which could lead to cost overruns and schedule delays. The aging of materials and systems means that unexpected repairs might be necessary beyond the initial scope. Another risk is the obsolescence of certain technologies or components, requiring more complex integration or replacement. Furthermore, the effectiveness of the extended life is contingent on the quality of the refurbishment; inadequate work could lead to premature failures or reduced operational performance. Ensuring rigorous inspection, testing, and quality control throughout the SLEP process is crucial to mitigate these risks.

What is the expected increase in operational capability or lifespan for these motor lifeboats post-refurbishment?

The Service Life Extension Program (SLEP) aims to significantly extend the operational lifespan of the motor lifeboats, typically by adding a substantial number of years to their service life, often 10-20 years or more, depending on the program's scope and the vessel's condition. Beyond just extending lifespan, SLEP often includes upgrades to systems and components to improve performance, reliability, and maintainability. This could involve modernizing navigation and communication equipment, enhancing propulsion systems for better efficiency or speed, or reinforcing structural integrity. The specific increase in capability and lifespan for these two lifeboats would be detailed in the technical specifications of the delivery order, outlining the expected performance improvements and the projected duration of their renewed service.

How does this contract fit into the broader U.S. Coast Guard fleet readiness strategy?

This contract is a crucial component of the U.S. Coast Guard's fleet readiness strategy, which emphasizes maintaining and modernizing its existing assets to ensure continuous operational capability. By investing in Service Life Extension Programs, the Coast Guard can sustain its fleet's effectiveness without the immediate need for costly and time-consuming new vessel procurements. This approach allows for a more predictable and manageable budget allocation for fleet sustainment. The motor lifeboats are essential for various missions, including search and rescue, law enforcement, and port security. Ensuring these assets are operational and up-to-date through SLEP directly supports the Coast Guard's ability to fulfill its diverse maritime responsibilities and maintain a robust presence across U.S. waters.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4965 KINGSTON ST, DENVER, CO, 80239

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

Financial Breakdown

Contract Ceiling: $5,723,517

Exercised Options: $5,723,517

Current Obligation: $5,723,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02319DAML00300

IDV Type: IDC

Timeline