DHS Coast Guard Awards $38M for Ship Repair Parts Under Full and Open Competition

Contract Overview

Contract Amount: $38,009,095 ($38.0M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-02

End Date: 2027-09-30

Contract Duration: 1,154 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ORDER IS ISSUED TO ORDER AGAINST IDIQ CLINS 05004 (PROGRAM MANAGEMENT SUPPORT), CLIN 05012AB PROPELLER SET, 05012AC PROPELLER SHAFT, 05012AD CARDAN SHAFT, 05012AE PROPELLER STRUT SET, AND 05012AF REVERSE/REDUCTION GEAR SET (PORT AND STARBOARD).

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.0 million to BIRDON AMERICA INC for work described as: ORDER IS ISSUED TO ORDER AGAINST IDIQ CLINS 05004 (PROGRAM MANAGEMENT SUPPORT), CLIN 05012AB PROPELLER SET, 05012AC PROPELLER SHAFT, 05012AD CARDAN SHAFT, 05012AE PROPELLER STRUT SET, AND 05012AF REVERSE/REDUCTION GEAR SET (PORT AND STARBOARD). Key points: 1. Significant award for critical ship components, including propeller sets and gear sets. 2. Competition was full and open, suggesting a robust price discovery process. 3. The contract is firm fixed price, transferring cost risk to the contractor. 4. The sector is Ship Building and Repairing, vital for national maritime capabilities.

Value Assessment

Rating: good

The award value of $38M for a 3-year period appears reasonable for specialized ship components. Benchmarking against similar contracts for propeller sets and gearboxes would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method is expected to yield competitive pricing and ensure fair market value.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels through timely access to critical parts. Supports the maritime defense and security infrastructure of the United States. Contributes to the shipbuilding and repair industry, potentially supporting jobs and innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Long-term availability and obsolescence of specialized parts.

Positive Signals

Firm fixed price contract mitigates cost overrun risk for the government.
Full and open competition suggests competitive pricing.
Long-term contract provides supply chain stability for critical components.

Sector Analysis

The Ship Building and Repairing sector is capital-intensive and requires specialized expertise. Spending benchmarks for this sector can vary widely based on the complexity and scale of the vessels and components involved.

Small Business Impact

While the prime contractor is BIRDON AMERICA INC, the data does not indicate any specific subcontracting goals for small businesses on this particular order. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award is a delivery order against an IDIQ contract, suggesting a pre-competed framework. Oversight would focus on performance, delivery schedules, and adherence to contract terms by the contractor.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions.
Long-term availability of specialized parts.
Contractor performance risk.
Obsolescence of components over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.0 million to BIRDON AMERICA INC. ORDER IS ISSUED TO ORDER AGAINST IDIQ CLINS 05004 (PROGRAM MANAGEMENT SUPPORT), CLIN 05012AB PROPELLER SET, 05012AC PROPELLER SHAFT, 05012AD CARDAN SHAFT, 05012AE PROPELLER STRUT SET, AND 05012AF REVERSE/REDUCTION GEAR SET (PORT AND STARBOARD).

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 $38.0 million.

What is the period of performance?

Start: 2024-08-02. End: 2027-09-30.

What is the historical performance of BIRDON AMERICA INC on similar government contracts, particularly regarding on-time delivery and quality of components?

Assessing BIRDON AMERICA INC's past performance is crucial for understanding potential risks. Reviewing contract databases for similar awards, including delivery orders for propeller sets and gear sets, can reveal trends in their ability to meet deadlines and quality standards. Any history of delays or quality issues would warrant closer scrutiny of this new award's execution.

How does the unit cost of these propeller and gear components compare to industry benchmarks or previous procurements by other agencies?

Benchmarking unit costs against industry standards and similar government procurements is essential for validating value. If the per-unit cost for propeller sets or gear sets significantly exceeds benchmarks, it could indicate potential overpricing or unique specifications driving up costs. This comparison helps determine if the government is achieving a fair and reasonable price.

What is the long-term strategy for maintaining and replacing these critical ship components, and does this award align with that strategy?

Understanding the long-term maintenance and replacement strategy is key to assessing the effectiveness of this award. This contract should ideally fit into a broader plan for ensuring the operational readiness of the Coast Guard fleet. If this award represents a piecemeal approach or doesn't address future sustainment needs, its long-term effectiveness could be questionable.

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: $38,009,095

Exercised Options: $38,009,095

Current Obligation: $38,009,095

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