Coast Guard awards $776K for USCGC CHENA drydocking, with WEPFER MARINE, INC. securing the contract

Contract Overview

Contract Amount: $776,591 ($776.6K)

Contractor: Wepfer Marine, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-24

End Date: 2026-05-04

Contract Duration: 69 days

Daily Burn Rate: $11.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCGC CHENA (WLR 75409) USCG 130 BARGE (13071) DRYDOCK (DD) FY26

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38113

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $776,590.56 to WEPFER MARINE, INC. for work described as: USCGC CHENA (WLR 75409) USCG 130 BARGE (13071) DRYDOCK (DD) FY26 Key points: 1. Value for money appears reasonable given the specialized nature of vessel drydocking and repair. 2. Competition dynamics indicate a single award from a limited solicitation process. 3. Risk indicators are moderate, primarily related to potential schedule delays or unforeseen repair needs. 4. Performance context involves essential maintenance for a Coast Guard vessel, ensuring operational readiness. 5. Sector positioning places this contract within the maritime vessel repair and maintenance industry.

Value Assessment

Rating: good

The contract value of $776,590.56 for the drydocking of USCGC CHENA (WLR 75409) seems aligned with typical costs for specialized maritime maintenance. Benchmarking against similar Coast Guard or Navy vessel repair contracts would provide a more precise value assessment, but the firm fixed-price structure suggests a degree of cost certainty. The duration of the work (69 days) also appears standard for such operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition approach. While the specific number of bidders is not detailed, SAP typically involves soliciting from a smaller pool of pre-qualified or readily available vendors. This method is often used for procurements below certain dollar thresholds to expedite the process, but it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: For taxpayers, limited competition can sometimes result in higher prices than if a broader range of vendors were invited to bid. However, the use of SAP for smaller procurements is intended to be efficient and cost-effective overall.

Public Impact

The primary beneficiary is the U.S. Coast Guard, which will have the USCGC CHENA maintained and ready for its missions. Services delivered include essential drydocking, inspection, and repair work to ensure the vessel's seaworthiness. The geographic impact is localized to the repair facility, likely in Tennessee given the state code provided. Workforce implications involve skilled labor in shipbuilding and repairing trades at the selected contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen repair issues discovered during drydocking could lead to cost overruns if not managed contractually.
Reliance on a limited number of bidders may reduce price competitiveness.
Schedule adherence is critical for maintaining Coast Guard operational readiness.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
The contractor, WEPFER MARINE, INC., has a track record that can be reviewed for performance history.
The procurement falls under essential maritime maintenance, indicating a clear operational need.

Sector Analysis

This contract operates within the maritime vessel repair and maintenance sector, a specialized segment of the broader shipbuilding and repairing industry (NAICS 336611). This sector requires specific infrastructure, skilled labor, and regulatory compliance. Spending in this area is driven by the need to maintain aging fleets across various government agencies, including the Coast Guard, Navy, and Army Corps of Engineers. Comparable spending benchmarks would involve analyzing other drydocking and repair contracts for similar-sized vessels within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While WEPFER MARINE, INC. might be a small business, the procurement itself did not have a specific small business set-aside designation. This means opportunities for subcontracting with small businesses would depend on the prime contractor's internal policies and the availability of specialized services needed for the drydocking.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office responsible for vessel maintenance. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services by the completion date. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USCG Vessel Maintenance Contracts
Maritime Repair and Drydocking Services
Shipbuilding and Repairing Industry Contracts
Department of Homeland Security Procurement

Risk Flags

Limited competition may impact price competitiveness.
Potential for unforeseen repair needs during drydocking.
Schedule adherence is critical for operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $776,590.56 to WEPFER MARINE, INC.. USCGC CHENA (WLR 75409) USCG 130 BARGE (13071) DRYDOCK (DD) FY26

Who is the contractor on this award?

The obligated recipient is WEPFER MARINE, 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 $776,590.56.

What is the period of performance?

Start: 2026-02-24. End: 2026-05-04.

What is the track record of WEPFER MARINE, INC. with the U.S. Coast Guard and similar federal agencies?

A review of federal procurement data would be necessary to fully assess WEPFER MARINE, INC.'s track record. This would involve examining past contract awards, performance evaluations (if available in systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Understanding their experience with similar vessel types (e.g., cutters, barges) and the scope of work (drydocking, major repairs) is crucial for evaluating their capability to successfully execute the USCGC CHENA contract. A history of timely delivery and quality work on comparable projects would be a positive indicator, while frequent delays or quality issues would raise concerns.

How does the awarded price compare to market rates for similar vessel drydocking services?

To benchmark the $776,590.56 award, one would need to compare it against recent contract awards for drydocking and repair of vessels of similar size and type (e.g., 130-foot inland construction tenders or similar Coast Guard assets) within the same geographic region or naval district. Data from sources like the Federal Procurement Data System (FPDS) or specialized maritime industry cost databases could provide comparable figures. Factors such as the specific scope of work (routine maintenance vs. extensive repairs), the complexity of the vessel's systems, and the prevailing labor and material costs in the region where the drydocking occurs would influence the comparison. A higher price than benchmarks might suggest less competition or unique requirements, while a lower price could indicate strong competition or efficient operations.

What are the primary risks associated with this specific drydocking contract?

The primary risks for this contract revolve around the potential for unforeseen issues discovered during the drydocking process. Vessels, especially those in service, can harbor hidden structural damage, corrosion, or system failures that are only apparent once the hull is accessible and systems are tested out of the water. These discoveries could necessitate additional work, potentially leading to schedule delays and cost increases if not adequately addressed through contract modifications or contingency planning. Another risk is the contractor's ability to meet the firm fixed-price deadline, as delays could impact the Coast Guard's operational readiness. Furthermore, the limited competition aspect introduces a risk that the price may not be as competitive as it could be under a broader solicitation.

What is the historical spending pattern for USCGC CHENA (WLR 75409) or similar vessels within the Coast Guard?

Analyzing historical spending for USCGC CHENA (WLR 75409) or comparable vessels requires accessing detailed procurement records over several fiscal years. This would involve searching databases like FPDS for previous maintenance, repair, and drydocking contracts awarded to this specific hull number or vessels of similar class and function within the Coast Guard inventory. Understanding the frequency and cost of past maintenance cycles can reveal trends in vessel upkeep needs and identify potential patterns of recurring issues or escalating repair costs. Comparing this vessel's maintenance expenditure against the average for its class can indicate whether it is receiving standard care or requires more intensive (and costly) interventions, potentially highlighting efficiency or areas needing attention.

How does the Simplified Acquisition Procedure (SAP) impact the value and competition for this contract?

The use of Simplified Acquisition Procedures (SAP) for this $776,590.56 contract is intended to streamline the procurement process for purchases below the federal acquisition threshold for full and open competition. While SAP generally allows for more efficient and faster award timelines, it typically involves soliciting quotes from a smaller, more limited number of vendors compared to full and open competition. This can sometimes result in less robust price competition, potentially leading to higher prices than might be achieved through a broader solicitation. However, for specialized services like vessel drydocking, where the pool of qualified contractors may be limited, SAP can be an effective way to ensure timely acquisition while still obtaining reasonable value, provided the government adequately researches pricing and solicits from capable sources.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2821 CHANNEL AVE, MEMPHIS, TN, 38113

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $776,591

Exercised Options: $776,591

Current Obligation: $776,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline