DHS Coast Guard Awards $39.8M Task Order to Birdon America Inc. for Ship Design & Engineering

Contract Overview

Contract Amount: $39,861,094 ($39.9M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-03-02

End Date: 2025-03-01

Contract Duration: 730 days

Daily Burn Rate: $54.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER CLIN 0001 DESIGN AND ENGINEERING

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.9 million to BIRDON AMERICA INC for work described as: TASK ORDER CLIN 0001 DESIGN AND ENGINEERING Key points: 1. Significant contract value for specialized ship design and engineering services. 2. Competition method indicates a potentially limited but structured procurement process. 3. Risk associated with long-term contract duration and fixed-price structure. 4. Spending falls within the broader shipbuilding and repairing sector.

Value Assessment

Rating: good

The contract value of $39.8M for a 730-day duration appears reasonable for specialized design and engineering services. Benchmarking against similar complex maritime engineering contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool. This method can impact price discovery if not managed carefully.

Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure support, with the final price influenced by the competitive process employed.

Public Impact

Ensures continued operational readiness for the U.S. Coast Guard fleet. Supports specialized engineering jobs within the maritime industry. Contributes to the modernization and maintenance of national security assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise with fixed-price contract.
Reliance on a single contractor for critical design elements.
Limited transparency in the initial source exclusion phase.

Positive Signals

Clear task order for essential Coast Guard operations.
Defined contract duration and delivery schedule.
Fixed-price contract provides budget certainty.

Sector Analysis

This contract falls under the Ship Building and Repairing sector (NAICS 336611), which is crucial for national defense and maritime security. Spending benchmarks for similar design and engineering task orders can vary widely based on complexity and vessel type.

Small Business Impact

The contract was awarded to Birdon America Inc., a specific company. Analysis is needed to determine if small businesses were subcontracted or if opportunities were missed in the primary award.

Oversight & Accountability

Oversight will be crucial to ensure Birdon America Inc. meets design specifications and delivery timelines within the fixed-price constraint. The Coast Guard's program management will be key to accountability.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition justification requires scrutiny.
Fixed-price risk for complex engineering projects.
Long contract duration increases exposure to changing requirements.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.9 million to BIRDON AMERICA INC. TASK ORDER CLIN 0001 DESIGN AND ENGINEERING

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 $39.9 million.

What is the period of performance?

Start: 2023-03-02. End: 2025-03-01.

What was the specific justification for excluding sources in the initial competition phase, and how did this impact the final price?

The justification for excluding sources is critical to understanding the procurement's fairness and potential cost implications. If the exclusion was based on unique capabilities or prior performance, it might justify a higher price. However, if it limited competition unnecessarily, taxpayers may have overpaid. Further documentation is needed to assess the rationale and its effect on price discovery.

What are the key technical risks associated with this ship design and engineering task order, and how are they being mitigated under the fixed-price contract?

Technical risks could include unforeseen design complexities, integration challenges with existing systems, or material availability issues. Under a fixed-price contract, the contractor bears the primary financial risk for cost overruns. Mitigation strategies likely involve detailed technical specifications, robust project management, and contingency planning by Birdon America Inc. The Coast Guard's oversight will be vital in monitoring progress and addressing potential issues.

How does this $39.8M task order contribute to the U.S. Coast Guard's long-term strategic goals and operational effectiveness?

This task order directly supports the U.S. Coast Guard's mission by ensuring the design and engineering of critical assets are up-to-date and functional. Effective design and engineering are foundational for maintaining fleet readiness, enhancing operational capabilities (e.g., search and rescue, maritime security), and ensuring the longevity of expensive vessels. This investment is crucial for the Coast Guard's ability to fulfill its diverse and demanding responsibilities.

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 AFTER EXCLUSION OF SOURCES

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $39,861,094

Exercised Options: $39,861,094

Current Obligation: $39,861,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02323D93270001

IDV Type: IDC

Timeline