Coast Guard awards $10.9M for boat building, with limited competition and a 5-year duration

Contract Overview

Contract Amount: $10,890,742 ($10.9M)

Contractor: Reconcraft, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-23

End Date: 2025-07-31

Contract Duration: 1,772 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 32 SPC-SW II RECONCRAFT INC 320 NEVADA ST. SUITE 301 NEWTON, MA 02460 8776457761 JOHN HOFLICH

Place of Performance

Location: ESTACADA, CLACKAMAS County, OREGON, 97023

State: Oregon Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.9 million to RECONCRAFT, LLC for work described as: 32 SPC-SW II RECONCRAFT INC 320 NEVADA ST. SUITE 301 NEWTON, MA 02460 8776457761 JOHN HOFLICH Key points: 1. Contract awarded to RECONCRAFT, LLC for boat building services. 2. The contract has a duration of 1772 days, spanning from September 2020 to July 2025. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. The award was not available for competition, raising questions about market exploration. 5. The base contract value is $10.9 million. 6. The awarding agency is the Department of Homeland Security, specifically the U.S. Coast Guard. 7. The contract is for boat building and repair services. 8. The contract was awarded in Oregon.

Value Assessment

Rating: fair

Benchmarking the value for this specific boat building contract is challenging without more detailed specifications of the boats or services. The $10.9 million award over approximately five years suggests a moderate annual spend. However, the lack of competitive bidding limits the ability to assess if the pricing is optimal or if better value could have been achieved through a more open process. Further analysis would require comparing the scope of work and delivered assets against similar contracts awarded by the Coast Guard or other maritime agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or limited competition basis, as indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one contractor, RECONCRAFT, LLC, was solicited or considered for this award. The lack of broader competition means that the government did not explore the full range of potential suppliers, which could impact price discovery and potentially lead to higher costs than if multiple bids were received.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This approach limits the government's ability to leverage market forces to secure cost savings.

Public Impact

The U.S. Coast Guard benefits from the acquisition of specialized boats, crucial for its maritime security and operational missions. This contract supports the Coast Guard's ability to maintain and enhance its fleet, ensuring readiness for various operational demands. The services delivered likely include the construction, modification, or repair of vessels essential for law enforcement, search and rescue, and national defense. The geographic impact is primarily in Oregon, where the contractor is located and potentially where the work is performed or delivered. The contract supports jobs within the maritime manufacturing and repair sector in Oregon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and lack of innovation.
Lack of transparency in the procurement process hinders public scrutiny of value for money.
The long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
The U.S. Coast Guard is a critical agency, and ensuring its operational readiness is a positive outcome.
The contract supports a specific industry sector, contributing to economic activity.

Sector Analysis

The maritime industry, particularly boat building and repair, is a significant sector within the broader defense and transportation industries. This contract falls within the specialized segment of government procurement for maritime assets. Comparable spending benchmarks would involve analyzing other contracts for similar vessel types or services awarded by agencies like the Navy, NOAA, or other federal entities involved in maritime operations. The market for specialized government vessels is often characterized by a limited number of qualified contractors.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mandated for small businesses. Consequently, the direct impact on the small business ecosystem for this particular award is likely minimal, and opportunities for small business subcontractors may not be explicitly prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices, as well as the U.S. Coast Guard's contracting and program execution teams. Inspector General oversight from DHS may also be applicable, particularly concerning allegations of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but the limited competition aspect reduces the visibility into the justification for sole-sourcing and the evaluation of alternatives.

Related Government Programs

U.S. Coast Guard Vessel Procurement
Department of Homeland Security Maritime Contracts
Federal Boat Building and Repair Services
Defense Contract Awards

Risk Flags

Limited competition may lead to suboptimal pricing.
Lack of detailed specifications in summary data hinders full value assessment.
Sole-source justification requires further scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.9 million to RECONCRAFT, LLC. 32 SPC-SW II RECONCRAFT INC 320 NEVADA ST. SUITE 301 NEWTON, MA 02460 8776457761 JOHN HOFLICH

Who is the contractor on this award?

The obligated recipient is RECONCRAFT, LLC.

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 $10.9 million.

What is the period of performance?

Start: 2020-09-23. End: 2025-07-31.

What specific types of boats are being built or serviced under this contract?

The provided data indicates the contract is for 'Boat Building' (nd: 'Boat Building') but does not specify the exact types or classes of vessels. The U.S. Coast Guard operates a diverse fleet, including response boats, patrol boats, cutters, and specialized craft for various missions such as law enforcement, search and rescue, and port security. To understand the full scope, one would need to consult the contract's Statement of Work (SOW) or technical specifications, which are not included in the abbreviated data. The nature of the boats would significantly influence the complexity, cost, and performance requirements.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states 'NOT AVAILABLE FOR COMPETITION' (ct: 'NOT AVAILABLE FOR COMPETITION'), which typically signifies a sole-source or limited competition award. The specific justification for this determination is not provided in the abbreviated data. Common reasons for sole-source awards include unique capabilities of the contractor, urgent and compelling needs where only one source can meet the requirement, or when market research indicates only one responsible source exists. A full justification would typically be documented in the contract file and may be subject to review by oversight bodies.

How does the $10.9 million contract value compare to similar Coast Guard boat building contracts?

Comparing the $10.9 million value requires context on the type and quantity of boats. If this contract is for a single, large vessel or a significant number of smaller specialized craft, the value might be reasonable. However, without knowing the specifics, it's difficult to benchmark. Generally, the U.S. Coast Guard procures vessels ranging from small response boats costing hundreds of thousands to large cutters costing hundreds of millions. A $10.9 million award over five years suggests a moderate-sized project, potentially for a series of patrol or specialized support vessels. Further analysis would involve searching for comparable contracts for similar vessel classes and durations.

What are the performance metrics or key performance indicators (KPIs) for this contract?

The abbreviated data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, government contracts, especially for complex procurements like boat building, will outline detailed performance standards related to delivery schedules, quality of construction, adherence to specifications, and potentially operational readiness upon delivery. These KPIs are crucial for evaluating the contractor's performance and ensuring the government receives the expected value. Without this information, assessing the contractor's track record on this specific contract is limited.

What is the historical spending pattern for boat building by the U.S. Coast Guard?

Historical spending patterns for boat building by the U.S. Coast Guard are substantial, reflecting the agency's operational needs. The Coast Guard consistently invests in acquiring, maintaining, and modernizing its fleet, which includes a wide array of vessels. Annual spending can fluctuate based on major acquisition programs and sustainment needs. While this specific $10.9 million contract represents a portion of that spending, a comprehensive analysis would require examining multi-year spending trends for vessel procurement and repair across the entire Coast Guard budget, looking at trends in contract types, competition levels, and average award values for different vessel classes.

What is the track record of RECONCRAFT, LLC in fulfilling government contracts, particularly for the Coast Guard?

Information on RECONCRAFT, LLC's specific track record with government contracts, especially for the U.S. Coast Guard, is not detailed in the provided data. To assess their performance, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Given this is a sole-source award, it might imply a pre-existing relationship or a perceived unique capability. A thorough review would involve searching federal contract databases and performance repositories for their history.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 721 DEPOT DR, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,890,742

Exercised Options: $10,890,742

Current Obligation: $10,890,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02319DMOT00400

IDV Type: IDC

Timeline