DHS Coast Guard Awards $6.4M for Ship Repair to Lake Union Drydock Company

Contract Overview

Contract Amount: $6,440,445 ($6.4M)

Contractor: Lake Union Drydock Company

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-12

End Date: 2026-04-24

Contract Duration: 102 days

Daily Burn Rate: $63.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CGC CYPYRESS DD FY 26 - DEFINITIVE WORK ITEMS.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98102

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.4 million to LAKE UNION DRYDOCK COMPANY for work described as: CGC CYPYRESS DD FY 26 - DEFINITIVE WORK ITEMS. Key points: 1. Contract value of $6.4 million for ship building and repair. 2. Awarded to Lake Union Drydock Company, a single entity. 3. Potential risk associated with a single awardee for specialized services. 4. Sector focus on Ship Building and Repair (NAICS 336611).

Value Assessment

Rating: fair

The contract value of $6.4 million for a 102-day delivery order appears reasonable for specialized ship repair services. Benchmarking against similar contracts for the U.S. Coast Guard would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. While SAP can expedite procurement, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential ship maintenance. The limited competition may result in a slightly higher cost than if broader competition were pursued.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels. Supports critical maritime security and law enforcement missions. Impacts the shipbuilding and repair industry in Washington state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price escalation due to specialized nature

Positive Signals

Supports critical Coast Guard operations
Awarded to an established company

Sector Analysis

This contract falls within the Ship Building and Repair sector, which is vital for national defense and maritime infrastructure. Spending in this sector can fluctuate based on fleet modernization and maintenance needs.

Small Business Impact

Analysis of small business participation is not available for this specific award. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The award was made under Simplified Acquisition Procedures, which have streamlined oversight requirements. However, the limited competition warrants attention to ensure fair pricing and performance.

Related Government Programs

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

Risk Flags

Limited competition
Potential for cost overruns
Reliance on a single provider
Lack of detailed performance history

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.4 million to LAKE UNION DRYDOCK COMPANY. CGC CYPYRESS DD FY 26 - DEFINITIVE WORK ITEMS.

Who is the contractor on this award?

The obligated recipient is LAKE UNION DRYDOCK COMPANY.

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 $6.4 million.

What is the period of performance?

Start: 2026-01-12. End: 2026-04-24.

What is the historical performance record of Lake Union Drydock Company with the U.S. Coast Guard?

Information on the historical performance record of Lake Union Drydock Company with the U.S. Coast Guard is not provided in the data. A review of past performance, including on-time delivery, quality of work, and adherence to budget, would be crucial for assessing future reliability and value for money on this contract.

Were there any other qualified bidders considered under the SAP process?

The data indicates the contract was 'COMPETED UNDER SAP,' suggesting that multiple solicitations may have occurred. However, it does not specify if other qualified bidders were considered or why Lake Union Drydock Company was ultimately selected. Understanding the competitive landscape within the SAP framework is key to assessing price discovery.

How does the $6.4 million award compare to the benchmark cost for similar ship repair services?

The provided data includes a 'br' (benchmark rate) of 63142, but its direct applicability to the total contract value of $6.4 million is unclear without further context on what it represents (e.g., hourly rate, daily rate). A comprehensive comparison to industry benchmarks for similar U.S. Coast Guard ship repair contracts is necessary to evaluate cost-effectiveness.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1515 FAIRVIEW AVE E, SEATTLE, WA, 98102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,440,445

Exercised Options: $6,440,445

Current Obligation: $6,440,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08526DIBCT0003

IDV Type: IDC

Timeline