Coast Guard awards $73.8M contract for ship maintenance to Birdon America Inc

Contract Overview

Contract Amount: $73,872,964 ($73.9M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-22

End Date: 2027-09-22

Contract Duration: 730 days

Daily Burn Rate: $101.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WLIC #2

Place of Performance

Location: BAYOU LA BATRE, MOBILE County, ALABAMA, 36509

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $73.9 million to BIRDON AMERICA INC for work described as: WLIC #2 Key points: 1. Contract value represents a significant investment in maintaining critical Coast Guard assets. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (730 days) indicates a long-term need for these services. 5. Geographic location of the contractor in Alabama may influence local economic impact. 6. The specific North American Industry Classification System (NAICS) code points to specialized shipbuilding and repair services.

Value Assessment

Rating: good

The contract value of $73.8 million for ship maintenance over two years appears reasonable given the specialized nature of the services. Benchmarking against similar large-scale vessel repair contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, though the specific profit margins are not detailed here. Without detailed cost breakdowns or comparisons to other bids, a definitive value assessment is challenging, but the competitive nature of the award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The fact that it was competed broadly suggests multiple bidders likely participated, which generally leads to better price discovery and potentially lower costs for the government. The specific reasons for excluding certain sources, if any, would be crucial for a complete understanding of the competitive landscape.

Taxpayer Impact: A broad competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages efficiency among contractors.

Public Impact

The U.S. Coast Guard benefits from the enhanced operational readiness of its fleet through essential maintenance and repair services. The contract ensures the continued availability of vital maritime security, search and rescue, and law enforcement capabilities. The primary geographic impact is likely concentrated in Alabama, where the contractor is located, potentially creating or sustaining local jobs in the shipbuilding and repair sector. The contract supports a specialized workforce skilled in naval architecture, engineering, and maritime trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on a single contractor for critical ship repair services could pose a risk if performance issues arise.
The exclusion of certain sources, if not well-justified, could limit competition and potentially increase costs.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Awarded under full and open competition, indicating a robust bidding process.
Contract duration suggests a stable, long-term need being met.
Contractor located in Alabama may leverage regional expertise and supply chains.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and defense maritime needs. This contract falls within a specialized niche focused on maintaining and repairing vessels, likely for the U.S. Coast Guard's operational fleet. The market for such services is characterized by high barriers to entry due to specialized equipment, skilled labor, and stringent regulatory requirements. Comparable spending benchmarks would typically involve analyzing other large vessel maintenance contracts awarded by federal agencies, particularly those with similar vessel types or operational requirements.

Small Business Impact

This contract was awarded to Birdon America Inc. and does not indicate any specific small business set-aside provisions. The contract value is substantial, suggesting it is unlikely to be directly awarded to a small business without subcontracting. There is no explicit mention of subcontracting goals for small businesses within the provided data. Further analysis would be needed to determine if Birdon America Inc. has a history of subcontracting with small businesses on similar contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS.gov. The Inspector General for the Department of Homeland Security may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Coast Guard Fleet Readiness Programs
Maritime Security Vessel Support
Shipbuilding and Repair Services

Risk Flags

Potential for performance issues impacting operational readiness.
Risk of unforeseen maintenance complexities leading to delays or cost adjustments (despite FFP).
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $73.9 million to BIRDON AMERICA INC. WLIC #2

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 $73.9 million.

What is the period of performance?

Start: 2025-09-22. End: 2027-09-22.

What is Birdon America Inc.'s track record with federal contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

Birdon America Inc. has a history of federal contracting, including significant awards related to military and government vessel support. While specific details of past performance with the U.S. Coast Guard require deeper database analysis, their presence in this sector suggests experience with government procurement and maritime services. Examining their contract history for on-time delivery, quality of work, and adherence to budget on previous projects would provide a clearer picture of their reliability. Past performance evaluations, often available through government contract databases or agency reports, are key indicators of a contractor's suitability for large, critical awards like this one.

How does the $73.8 million contract value compare to similar ship maintenance contracts awarded by the U.S. Coast Guard or other maritime agencies?

The $73.8 million contract value for ship maintenance over two years is substantial and aligns with the costs associated with maintaining large, complex vessels. To benchmark effectively, one would compare this award to similar contracts for the repair and maintenance of cutters, patrol boats, or other specialized maritime assets. Factors such as the size and type of vessels, the scope of work (e.g., routine maintenance vs. major overhauls), and the duration of the contract are critical for a fair comparison. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if this represents a premium or a discount, but the competitive award process suggests it is market-aligned.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns if unforeseen issues arise during maintenance, delays in delivery impacting Coast Guard operational readiness, and contractor performance issues. The firm fixed-price (FFP) contract type is a primary mitigation strategy against cost overruns, as it shifts much of that risk to the contractor. The contract duration (730 days) and defined scope of work aim to manage expectations and prevent scope creep. The Coast Guard's oversight and quality assurance processes are crucial for monitoring performance and ensuring timely, quality delivery. Furthermore, the competitive award process itself mitigates the risk of selecting an underqualified or overpriced vendor.

What is the expected impact of this contract on the U.S. Coast Guard's operational effectiveness and mission readiness?

This contract is directly aimed at ensuring the operational effectiveness and mission readiness of the U.S. Coast Guard's fleet. By providing essential ship maintenance and repair services, it addresses the wear and tear on vessels, ensuring they are seaworthy and equipped to perform their diverse missions. These missions include maritime security, drug interdiction, search and rescue, environmental protection, and law enforcement. Timely and high-quality maintenance prevents breakdowns, extends the service life of assets, and ensures that Coast Guard personnel have reliable platforms to operate from, thereby directly supporting the agency's ability to fulfill its critical national security and public safety roles.

How has federal spending on ship building and repairing (NAICS 336611) trended in recent years, and where does this contract fit within that trend?

Federal spending on ship building and repairing (NAICS 336611) can fluctuate based on defense budgets, naval modernization efforts, and the lifecycle needs of various government fleets, including the Coast Guard. Recent years may have seen increased investment in naval readiness and modernization across multiple agencies. This $73.8 million contract represents a significant, but likely not unprecedented, expenditure within this sector for the U.S. Coast Guard. Its placement within the broader spending trend would depend on the total annual outlays for ship maintenance and repair across the federal government. Analyzing historical spending data for this NAICS code would reveal whether this award is part of an increasing, decreasing, or stable spending pattern.

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: $73,872,964

Exercised Options: $73,872,964

Current Obligation: $73,872,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02323D93270001

IDV Type: IDC

Timeline