Coast Guard awards $19.7M for 4 Motor Lifeboat SLEP, with Birdon America Inc. as contractor

Contract Overview

Contract Amount: $19,736,419 ($19.7M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-04

End Date: 2026-06-30

Contract Duration: 1,791 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER UNDER INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT NO. 70Z02319DAML00300 IN SUPPORT THE ACQUISITION OF 47 MOTOR LIFEBOAT (MLB) SERVICE LIFE EXTENSION PROGRAM (SLEP) FOUR (4) MLBS (47242, 47262, 47302).

Place of Performance

Location: BELLINGHAM, WHATCOM County, WASHINGTON, 98225

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.7 million to BIRDON AMERICA INC for work described as: DELIVERY ORDER UNDER INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT NO. 70Z02319DAML00300 IN SUPPORT THE ACQUISITION OF 47 MOTOR LIFEBOAT (MLB) SERVICE LIFE EXTENSION PROGRAM (SLEP) FOUR (4) MLBS (47242, 47262, 47302). Key points: 1. This contract represents a significant investment in extending the operational life of critical Coast Guard assets. 2. The firm-fixed-price structure aims to control costs and provide predictability for the government. 3. The delivery order is part of a larger IDIQ contract, suggesting a pre-established relationship and framework for ongoing support. 4. The focus on service life extension indicates a strategy to maximize the utility of existing equipment rather than procuring new assets. 5. The contract's duration of nearly five years suggests a substantial and complex refurbishment process. 6. The specific hull numbers indicate a targeted approach to asset maintenance.

Value Assessment

Rating: good

The award amount of $19.7 million for the service life extension of four Motor Lifeboats appears reasonable given the scope of work. While direct comparisons are difficult without knowing the specific technical requirements and condition of each lifeboat, service life extension programs for complex maritime vessels typically involve extensive overhauls, component replacements, and upgrades. The firm-fixed-price contract type suggests that the contractor, Birdon America Inc., has assumed the risk for cost overruns, which is generally favorable for the government. Benchmarking against similar naval or Coast Guard vessel refurbishment contracts would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This competitive process is designed to ensure that the government receives the best possible pricing and technical solutions. The number of bidders and the specific evaluation criteria would provide a clearer picture of the intensity of the competition. A robust competition generally leads to more favorable pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance, ultimately benefiting the Coast Guard's budget.

Public Impact

The U.S. Coast Guard will benefit from extended operational readiness of its Motor Lifeboat fleet. Services delivered include refurbishment and life extension for four specific Motor Lifeboats. The geographic impact is primarily on operational areas where these lifeboats are deployed for search and rescue and maritime law enforcement. The contract supports specialized maritime manufacturing and repair workforce skills within the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the service life extension process.
Dependence on a single contractor for a critical fleet modernization effort.
Risk of schedule delays impacting operational availability if the refurbishment takes longer than anticipated.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting competitive pricing.
Focus on extending the life of existing assets is a cost-effective strategy compared to new procurement.
Long-term contract duration allows for thorough and comprehensive refurbishment.

Sector Analysis

The Ship Building and Repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and governmental maritime needs. This contract falls within the specialized area of vessel maintenance and modernization. Spending in this sector can fluctuate based on defense budgets, commercial shipping demand, and regulatory requirements. The U.S. Coast Guard is a significant customer for shipbuilding and repair services, often requiring specialized capabilities for its unique operational environment. Comparable spending benchmarks would involve analyzing other service life extension programs for similar government vessels.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, Birdon America Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether Birdon America Inc. actively seeks small business subcontractors for specialized services or components required for the Motor Lifeboat SLEP. Without a small business subcontracting plan mandated or voluntarily adopted, the direct benefit to small businesses may be limited.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Coast Guard, likely through contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed-upon price. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

U.S. Coast Guard Vessel Maintenance Contracts
Naval Ship Repair and Modernization Programs
IDIQ Contract Vehicles for Maritime Services
Defense Contract Management Agency Oversight

Risk Flags

Potential for schedule slippage
Risk of cost overruns if unforeseen issues arise
Dependence on contractor's technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.7 million to BIRDON AMERICA INC. DELIVERY ORDER UNDER INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT NO. 70Z02319DAML00300 IN SUPPORT THE ACQUISITION OF 47 MOTOR LIFEBOAT (MLB) SERVICE LIFE EXTENSION PROGRAM (SLEP) FOUR (4) MLBS (47242, 47262, 47302).

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 $19.7 million.

What is the period of performance?

Start: 2021-08-04. End: 2026-06-30.

What is the historical performance record of Birdon America Inc. with the U.S. Coast Guard or similar agencies?

Birdon America Inc. has a history of performing contracts for various government agencies, including the U.S. Coast Guard and the U.S. Army. Their portfolio often includes vessel construction, repair, and modernization services. For instance, they have been involved in projects related to patrol boats and other maritime assets. A detailed review of their past performance ratings, any past performance issues, and the successful completion of similar-sized projects would be necessary to fully assess their track record for this specific Motor Lifeboat SLEP. Analyzing contract close-out data and any disputes or claims filed would also provide valuable context.

How does the cost per lifeboat for this SLEP compare to industry benchmarks for similar vessel refurbishments?

The total award of $19.7 million for four Motor Lifeboats equates to approximately $4.925 million per vessel for the Service Life Extension Program (SLEP). Benchmarking this cost requires detailed knowledge of the specific scope of work, which includes extensive refurbishment and life extension. However, for mid-life upgrades or major overhauls of specialized vessels of this size and complexity, costs can range significantly. Factors such as the extent of structural repairs, engine overhauls, system replacements (navigation, communication, propulsion), and regulatory compliance upgrades heavily influence the final price. Without a detailed breakdown of the work items and their associated costs, a precise comparison to industry benchmarks is challenging. However, this figure appears to be within a plausible range for comprehensive maritime vessel modernization efforts.

What are the primary risks associated with extending the service life of these Motor Lifeboats, and how are they being mitigated?

The primary risks associated with extending the service life of these Motor Lifeboats include the potential for unforeseen structural degradation or system failures discovered during the refurbishment process, which could lead to cost overruns or schedule delays. Another risk is the obsolescence of certain components or technologies that may need to be replaced with modern equivalents, potentially increasing complexity and cost. Mitigation strategies likely include thorough initial inspections, detailed technical specifications within the contract, and the firm-fixed-price nature of the contract, which places the financial risk of unforeseen issues on the contractor, Birdon America Inc. The Coast Guard's oversight and quality assurance processes will also play a crucial role in identifying and addressing issues proactively.

What is the expected increase in operational availability or capability for the Coast Guard fleet as a result of this SLEP?

The Service Life Extension Program (SLEP) is designed to significantly enhance the operational availability and extend the useful life of the four Motor Lifeboats, likely by an additional 10-20 years, depending on the program's scope. This means the Coast Guard can continue to rely on these vessels for their critical missions, such as search and rescue, law enforcement, and port security, without the immediate need for costly new vessel procurements. The SLEP may also involve upgrades to systems (e.g., navigation, communication, propulsion) that improve performance, reliability, and potentially introduce new capabilities, thereby increasing the overall effectiveness of the fleet in executing its duties.

How does this $19.7 million award compare to the Coast Guard's overall spending on vessel maintenance and modernization over the past five years?

The $19.7 million award for this specific Motor Lifeboat SLEP represents a targeted investment in a particular asset class. To contextualize this, one would need to examine the U.S. Coast Guard's total budget allocation for vessel maintenance, repair, and modernization over the past five fiscal years. This figure would encompass a wide range of activities, from routine maintenance on numerous cutters and boats to larger recapitalization or SLEP projects for various vessel types. If the Coast Guard's annual spending on such activities averages significantly higher or lower than this single award, it would indicate whether this contract is a substantial or relatively minor component of their overall fleet sustainment strategy. Without that broader spending data, it's difficult to definitively state its relative scale.

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: $19,736,419

Exercised Options: $19,736,419

Current Obligation: $19,736,419

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