DHS Coast Guard Awards $2.95M Ship Repair Contract to JAG Industrial Services

Contract Overview

Contract Amount: $2,954,766 ($3.0M)

Contractor: JAG Industrial Services, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-20

End Date: 2026-08-10

Contract Duration: 112 days

Daily Burn Rate: $26.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OLIVER HENRY & MYRTLE HAZARD DS FY-26

Place of Performance

Location: FPO, FPO County, ARMED FORCES - PACIFIC, 96540

Plain-Language Summary

Department of Homeland Security obligated $3.0 million to JAG INDUSTRIAL SERVICES, INC for work described as: OLIVER HENRY & MYRTLE HAZARD DS FY-26 Key points: 1. Contract value of $2.95M for ship repair services. 2. Awarded under Simplified Acquisition Procedures (SAP), suggesting a competitive but streamlined process. 3. The contract is Firm Fixed Price, providing cost certainty for the government. 4. Services are for Ship Building and Repairing within the Pacific region.

Value Assessment

Rating: good

The contract value of $2.95M appears reasonable for specialized ship repair services. Benchmarking against similar contracts for vessel maintenance and repair would provide a more precise assessment, but the SAP competition method suggests a focus on value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP, indicating a competitive process likely involving multiple bids. This method aims to achieve fair and reasonable pricing by leveraging market competition within the simplified acquisition threshold.

Taxpayer Impact: The competitive award under SAP is expected to yield a fair price, minimizing unnecessary costs to taxpayers for these essential ship repair services.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels in the Pacific. Supports critical maritime security and law enforcement missions. Provides employment and economic activity within the ship repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if repair needs exceed initial estimates.
Dependence on a single contractor for a critical service window.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Competition under SAP likely secured a competitive price.
Defined period of performance ensures timely completion.

Sector Analysis

Ship building and repair is a specialized sector requiring significant technical expertise and infrastructure. Spending benchmarks vary widely based on vessel type and complexity of repairs, but this contract falls within a typical range for significant maintenance.

Small Business Impact

While the awardee is JAG INDUSTRIAL SERVICES, INC, the data does not specify if they are a small business. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, U.S. Coast Guard, with a defined period of performance. Standard oversight mechanisms for contract execution and quality assurance are expected to be in place.

Related Government Programs

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

Risk Flags

Contract duration is relatively short (112 days), potentially limiting long-term relationship benefits.
Specific details on the scope of work are not provided, increasing potential for change orders.
No explicit mention of small business subcontracting goals.
Reliance on SAP may limit the pool of potential bidders compared to larger, full-and-open solicitations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.0 million to JAG INDUSTRIAL SERVICES, INC. OLIVER HENRY & MYRTLE HAZARD DS FY-26

Who is the contractor on this award?

The obligated recipient is JAG INDUSTRIAL SERVICES, 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 $3.0 million.

What is the period of performance?

Start: 2026-04-20. End: 2026-08-10.

What specific types of repairs are included in this contract, and how do they align with the Coast Guard's current fleet maintenance needs?

The contract specifies 'Ship Building and Repairing' under NAICS code 336611. While the exact scope isn't detailed, it likely covers routine maintenance, emergent repairs, and potentially minor upgrades for Coast Guard vessels operating in the Pacific. Alignment with fleet needs would depend on the Coast Guard's specific maintenance schedules and identified deficiencies for their assets in that region.

What is the historical performance record of JAG INDUSTRIAL SERVICES, INC with the federal government, particularly for similar ship repair contracts?

Assessing JAG INDUSTRIAL SERVICES, INC's past performance is crucial for understanding their reliability and quality. Reviewing their contract history, past performance evaluations (if available in federal databases like CPARS), and any documented issues or commendations would provide insight into their capability to successfully execute this $2.95M contract.

How does the $2.95M contract value compare to the average cost for similar ship repair services, considering the vessel types and complexity of work expected?

Without specific details on the vessels and repair scope, a direct comparison is difficult. However, $2.95M is a substantial amount, suggesting significant work. Benchmarking against publicly available data for similar Coast Guard or Navy ship repair contracts, adjusted for vessel class and repair complexity, would be necessary to determine if this represents a fair market price.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08026QPBPL0032

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 E CHICAGO ST, JONESVILLE, MI, 49250

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,954,766

Exercised Options: $2,954,766

Current Obligation: $2,954,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline