Coast Guard awards $7M for two 65-foot response boats, spare parts, and training to SAFE BOATS INTERNATIONAL LLC

Contract Overview

Contract Amount: $6,973,653 ($7.0M)

Contractor: Safe Boats International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-04-12

End Date: 2026-09-10

Contract Duration: 1,977 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCUREMENT,DELIVERY, REACTIVATION AND TRAINING OF TWO (2) 65-FOOT RESPONSE BOATS WITH CRADLES, SPARE PARTS, AND SUPPORT MATERIALS. DJIBOUTI FMS LOA DB-P-LCA

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98312

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to SAFE BOATS INTERNATIONAL LLC for work described as: PURCUREMENT,DELIVERY, REACTIVATION AND TRAINING OF TWO (2) 65-FOOT RESPONSE BOATS WITH CRADLES, SPARE PARTS, AND SUPPORT MATERIALS. DJIBOUTI FMS LOA DB-P-LCA Key points: 1. The contract value of $6.97 million for two specialized response boats appears reasonable given the custom nature of maritime vessels. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have yielded fair market pricing. 3. The contract duration of approximately 5 years (April 2021 - September 2026) allows for phased delivery and integration. 4. The procurement includes essential support materials like spare parts and training, indicating a focus on long-term operational readiness. 5. The use of a Firm Fixed Price contract type mitigates cost overrun risks for the government. 6. The contractor, SAFE BOATS INTERNATIONAL LLC, is a known entity in the specialized vessel construction market.

Value Assessment

Rating: good

The total award of $6.97 million for two 65-foot response boats, including cradles, spare parts, and training, suggests a per-unit cost of approximately $3.48 million. This figure is within a reasonable range for custom-built, specialized maritime vessels designed for demanding operational environments. Benchmarking against similar government procurements for patrol or response boats of comparable size and complexity would provide a more precise value assessment, but initial indications point to fair pricing given the scope.

Cost Per Unit: Approximately $3.48 million per boat (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received, suggesting a moderate level of competition for this specialized requirement. While three bidders is not a large number, it is sufficient to establish a competitive baseline and encourage reasonable pricing from the participants.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a level playing field, drives efficiency, and aims to secure the best value through market forces.

Public Impact

The U.S. Coast Guard will benefit from enhanced operational capabilities with the addition of two new 65-foot response boats. These vessels are intended for response operations, likely supporting maritime security, search and rescue, and law enforcement missions. The geographic impact is centered around Djibouti, indicating support for U.S. operations or partner nation capacity building in that region. The procurement includes training, which will ensure Coast Guard personnel are proficient in operating and maintaining the new assets, supporting workforce readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance costs not fully detailed in the award notice.
Dependence on a single contractor for specialized spare parts could create future pricing vulnerabilities.
Ensuring timely delivery and operational readiness within the specified timeframe is crucial.

Positive Signals

Firm Fixed Price contract mitigates budget uncertainty.
Inclusion of spare parts and training enhances immediate operational utility.
Full and open competition suggests a robust initial pricing process.

Sector Analysis

This contract falls within the shipbuilding and repairing sector, specifically focusing on specialized response vessels. The market for such custom maritime craft is niche, often dominated by a few key manufacturers capable of meeting stringent military and government specifications. The $6.97 million award is a significant but not exceptionally large sum within the broader defense and maritime procurement landscape, reflecting the specialized nature and quantity of the items procured.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the contractor is SAFE BOATS INTERNATIONAL LLC, and there is no explicit mention of small business set-asides or subcontracting goals. The contract was awarded under full and open competition, and the 'sb' field is false, suggesting that small businesses were not specifically targeted for this prime contract. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers. Transparency is facilitated by the public nature of contract awards. Accountability measures are inherent in the Firm Fixed Price contract type, which holds the contractor responsible for delivering the specified goods and services within the agreed-upon price. The Department of Homeland Security's Office of Inspector General would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

U.S. Coast Guard Vessel Procurement
Maritime Security Vessels
Response Boat Acquisition
Foreign Military Sales Support

Risk Flags

Potential for long-term sustainment costs.
Dependence on specific contractor for parts/support.
Geopolitical stability in the operational region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to SAFE BOATS INTERNATIONAL LLC. PURCUREMENT,DELIVERY, REACTIVATION AND TRAINING OF TWO (2) 65-FOOT RESPONSE BOATS WITH CRADLES, SPARE PARTS, AND SUPPORT MATERIALS. DJIBOUTI FMS LOA DB-P-LCA

Who is the contractor on this award?

The obligated recipient is SAFE BOATS INTERNATIONAL 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 $7.0 million.

What is the period of performance?

Start: 2021-04-12. End: 2026-09-10.

What is the track record of SAFE BOATS INTERNATIONAL LLC in delivering similar response vessels to government agencies?

SAFE BOATS INTERNATIONAL LLC has a notable track record in constructing rigid hull inflatable boats (RHIBs) and other specialized vessels for various government and military clients, including the U.S. Coast Guard, Navy, and international partners. They are known for producing durable, high-performance craft designed for demanding maritime environments. Their experience typically includes meeting stringent military specifications and delivering vessels for patrol, interdiction, and special operations. While this specific award is for two 65-foot response boats, the company's broader portfolio demonstrates a capability to produce vessels of similar size and complexity, often incorporating custom features to meet unique operational requirements. Past performance reviews and contract histories would provide further detail on their delivery timeliness and quality.

How does the per-unit cost of these response boats compare to similar government procurements?

The estimated per-unit cost of approximately $3.48 million for each 65-foot response boat is substantial, reflecting the specialized engineering, materials, and construction required for high-performance maritime vessels. To provide a precise comparison, one would need to benchmark against recent procurements of similar-sized (e.g., 60-75 foot) patrol, response, or interdiction boats awarded by agencies like the Coast Guard, Navy, or Customs and Border Protection. Factors such as propulsion systems, onboard electronics, mission-specific equipment (e.g., sensors, weapon mounts), and survivability features significantly influence cost. Given the 'full and open competition' and three bids received, it suggests the pricing was competitive within its niche market. However, a detailed comparison with publicly available contract data for analogous vessels would be necessary for a definitive value assessment.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential delays in delivery, performance issues with the vessels, and unforeseen cost increases (though mitigated by the contract type). Delays could arise from supply chain disruptions for specialized components, manufacturing challenges, or testing and acceptance hurdles. Performance risks involve ensuring the boats meet all specified operational requirements under various sea conditions. The Firm Fixed Price (FFP) contract type is a key mitigation strategy, placing the financial risk of cost overruns on the contractor. The contract duration of nearly five years allows for phased delivery and acceptance, providing opportunities to identify and address issues incrementally. Furthermore, the inclusion of spare parts and training aims to ensure immediate operational readiness upon delivery, reducing post-delivery support risks.

What is the expected effectiveness of these new response boats in supporting Coast Guard operations in Djibouti?

The effectiveness of these two 65-foot response boats is expected to significantly enhance the U.S. Coast Guard's operational capabilities in the Djibouti region. These vessels are likely designed for maritime security patrols, counter-piracy operations, search and rescue missions, and potentially law enforcement interdictions in the strategic waters of the Horn of Africa. Their size and design should offer a balance of speed, maneuverability, and endurance suitable for the environmental conditions and operational tempo in the area. The inclusion of spare parts and comprehensive training ensures that the vessels can be maintained and operated efficiently by Coast Guard personnel, maximizing their uptime and readiness to respond to emerging threats and incidents, thereby contributing to regional stability and U.S. interests.

How does this procurement fit into the broader context of U.S. maritime security efforts in the region?

This procurement directly supports U.S. maritime security efforts in the strategically vital region around Djibouti, which includes key shipping lanes and is adjacent to areas experiencing significant maritime security challenges, such as piracy and illegal fishing. By providing modern, capable response boats, the U.S. Coast Guard can enhance its presence, improve its ability to conduct patrols, respond to incidents, and potentially support partner nation maritime forces. This investment aligns with broader U.S. foreign policy and national security objectives aimed at promoting stability, deterring illicit activities, and ensuring freedom of navigation in the Red Sea and Gulf of Aden. The acquisition signifies a commitment to maintaining operational readiness and projecting U.S. influence in a critical geopolitical area.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8800 SW BARNEY WHITE RD, BREMERTON, WA, 98312

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,973,653

Exercised Options: $6,973,653

Current Obligation: $6,973,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D005J

IDV Type: FSS

Timeline