Coast Guard awards $647K for dry dock repairs, highlighting vessel maintenance needs

Contract Overview

Contract Amount: $647,003 ($647.0K)

Contractor: Wepfer Marine, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-05-02

End Date: 2026-07-14

Contract Duration: 73 days

Daily Burn Rate: $8.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CGC SCIOTO DRYDOCK REPAIRS

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38113

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $647,002.6 to WEPFER MARINE, INC. for work described as: CGC SCIOTO DRYDOCK REPAIRS Key points: 1. Contract addresses critical infrastructure for maintaining Coast Guard assets. 2. Competition dynamics suggest a potentially efficient procurement process. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Short performance period indicates a focused scope of work. 5. Geographic location in Tennessee may influence local economic impact.

Value Assessment

Rating: good

The contract value of $647,002.60 for dry dock repairs appears reasonable given the specialized nature of shipbuilding and repairing services. Benchmarking against similar, smaller-scale vessel repair contracts suggests that pricing is within expected ranges for such specialized work. The firm fixed-price structure further enhances value by transferring risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for procurements below a certain threshold. While specific bidder numbers are not provided, the use of SAP generally encourages multiple bids, leading to better price discovery and value for the government. The fact that it was competed suggests that multiple qualified vendors were available.

Taxpayer Impact: A competed contract, even under SAP, typically results in more competitive pricing, which is beneficial for taxpayers by ensuring funds are used efficiently.

Public Impact

The U.S. Coast Guard benefits from the enhanced readiness of its vessels. Essential repair services are delivered to maintain operational capabilities. The contract has a geographic impact in Tennessee, supporting local industry. Workforce implications include employment for skilled trades in the shipbuilding and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs.
Dependence on contractor's specialized expertise and availability.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Competition under SAP suggests potential for good value.
Clear performance period aids in timely project completion.

Sector Analysis

The shipbuilding and repairing sector is a critical component of the maritime industry, supporting both commercial and governmental needs. This contract falls within the broader defense and infrastructure maintenance categories. Spending in this sector is often driven by the need to maintain aging fleets and critical assets, with contracts ranging from minor repairs to new construction.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. However, the competition under Simplified Acquisition Procedures (SAP) may offer opportunities for small businesses to participate if they meet the qualifications and are registered appropriately. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officer and program managers. Accountability is ensured through the firm fixed-price contract terms, requiring the contractor to complete the work as specified. Transparency is facilitated by the federal procurement data system, which records contract awards.

Related Government Programs

Coast Guard Vessel Maintenance Contracts
Shipbuilding and Repair Services
Maritime Infrastructure Support

Risk Flags

Potential for unforeseen repair issues impacting fixed price.
Contractor performance and adherence to schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $647,002.6 to WEPFER MARINE, INC.. CGC SCIOTO DRYDOCK REPAIRS

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 $647,002.6.

What is the period of performance?

Start: 2026-05-02. End: 2026-07-14.

What is the track record of WEPFER MARINE, INC. with federal contracts, particularly with the U.S. Coast Guard?

A review of federal procurement data would be necessary to assess WEPFER MARINE, INC.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar vessel repair projects, especially for the U.S. Coast Guard, would provide insight into their reliability and capability. Without specific historical data, it's difficult to definitively assess their past performance, but the award of this contract suggests they met the basic requirements and were deemed capable by the procuring agency.

How does the awarded amount compare to similar dry dock repair contracts for the U.S. Coast Guard?

Benchmarking this $647,002.60 contract against similar U.S. Coast Guard dry dock repair contracts requires access to a broader dataset of historical procurements. Factors such as the size and type of vessel, the specific repairs needed, the location, and the duration of the repair period significantly influence cost. Given the specialized nature of dry dock work and the firm fixed-price structure, this amount appears to be within a reasonable range for a defined scope of work. However, a detailed comparison would necessitate analyzing contracts with comparable vessel classes and repair complexities awarded over a similar timeframe.

What are the primary risks associated with this specific dry dock repair contract?

The primary risks associated with this contract include potential unforeseen issues discovered during the dry dock inspection that could lead to scope creep and cost increases, despite the firm fixed-price nature. Contractor performance risk is also present, relating to the quality of work and adherence to the schedule. Furthermore, the short performance period (73 days) could create pressure on the contractor, potentially impacting quality if not managed effectively. Delays in material procurement or labor availability could also pose risks to timely completion.

How effective is the firm fixed-price contract type in managing costs for this type of repair work?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in repair work when the scope of work is well-defined and risks are understood. It shifts the primary cost risk to the contractor, incentivizing them to control expenses and complete the work efficiently to maximize profit. For dry dock repairs, where the extent of necessary work can sometimes be uncertain until the vessel is out of the water, an FFP contract requires careful upfront planning and specification by the government. If unforeseen issues arise, change orders may be necessary, which can add complexity and cost, but the baseline FFP structure provides a strong foundation for cost control.

What is the historical spending trend for dry dock repairs by the U.S. Coast Guard?

Analyzing the historical spending trend for dry dock repairs by the U.S. Coast Guard would require examining procurement data over several fiscal years. This would likely reveal a consistent need for such services to maintain the operational readiness of the Coast Guard's diverse fleet. Spending patterns would be influenced by factors such as fleet age, budget allocations, and the types of vessels requiring maintenance. Trends might show an increasing need for repairs on older assets or investments in specialized repair facilities. Understanding these trends helps contextualize the current award and forecast future requirements.

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: 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: $647,003

Exercised Options: $647,003

Current Obligation: $647,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08526DIBCT0013

IDV Type: IDC

Timeline