NOAA Exercises $44M Ship Design Option with Bollinger Mississippi Shipbuilding, LLC
Contract Overview
Contract Amount: $44,022,537 ($44.0M)
Contractor: Bollinger Mississippi Shipbuilding, LLC
Awarding Agency: Department of Commerce
Start Date: 2005-12-22
End Date: 2013-08-31
Contract Duration: 2,809 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: EXERCISE OPTION FOR SHIP DESIGN AND CONSTRUCTION
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39568
Plain-Language Summary
Department of Commerce obligated $44.0 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: EXERCISE OPTION FOR SHIP DESIGN AND CONSTRUCTION Key points: 1. Significant contract value of $44 million for ship design and construction. 2. Sole-source award to Bollinger Mississippi Shipbuilding, LLC raises competition concerns. 3. Long contract duration of 2809 days suggests a complex, long-term project. 4. Awarded by the Department of Commerce (NOAA) for shipbuilding and repair.
Value Assessment
Rating: fair
The contract value of $44 million is substantial for ship design and construction. Without comparable contracts or detailed cost breakdowns, assessing its value relative to market rates is difficult. The fixed-price award fee structure aims to control costs while incentivizing performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures, indicating a sole-source award. This lack of competition limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award limits competitive pressure, potentially leading to a less favorable price for taxpayers.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts long-range budget planning for NOAA. The specific ship design and construction project's public benefit is not detailed. Potential for cost overruns exists if not managed tightly, despite fixed-price structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition details
Positive Signals
- Clear awardee identified
- Specific agency and purpose
Sector Analysis
The shipbuilding and repairing sector (NAICS 336611) involves complex, high-value contracts. This award falls within that category, with significant capital investment and specialized labor required. Benchmarks for similar sole-source ship design contracts are difficult to ascertain without more data.
Small Business Impact
The data indicates this contract was awarded to Bollinger Mississippi Shipbuilding, LLC, a specific company. There is no information provided regarding small business participation or subcontracting opportunities within this award.
Oversight & Accountability
The contract was awarded by the Department of Commerce's National Oceanic and Atmospheric Administration. Oversight would typically involve program managers monitoring progress, cost, and adherence to specifications throughout the contract's long duration.
Related Government Programs
- Ship Building and Repairing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration increases risk of cost escalation and scope creep.
- Lack of detailed justification for sole-source award.
- No information on small business participation.
- Potential for taxpayer overpayment due to lack of competition.
Tags
ship-building-and-repairing, department-of-commerce, ms, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $44.0 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. EXERCISE OPTION FOR SHIP DESIGN AND CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is BOLLINGER MISSISSIPPI SHIPBUILDING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $44.0 million.
What is the period of performance?
Start: 2005-12-22. End: 2013-08-31.
What specific ship design and construction services were procured, and how do they align with NOAA's mission objectives?
The contract details are limited to 'EXERCISE OPTION FOR SHIP DESIGN AND CONSTRUCTION.' Without further information, it's unclear what type of vessel is being designed and built, or how it directly supports NOAA's scientific, environmental, or operational goals. Understanding the specific requirements would allow for a better assessment of the contract's necessity and value.
What is the justification for awarding this contract as sole-source, and what steps were taken to ensure fair and reasonable pricing?
The data states the contract was 'NOT COMPETED UNDER SAP.' A sole-source award typically requires a justification, such as unique capabilities or urgency. The absence of competition raises concerns about price discovery. NOAA should have conducted a thorough market analysis and negotiation process to ensure the $44 million price was fair and reasonable, despite the lack of competing bids.
How will NOAA ensure effective oversight and accountability over this long-duration, sole-source contract to manage risks and ensure successful delivery?
Given the 2809-day duration and sole-source nature, robust oversight is critical. NOAA should implement stringent project management protocols, regular performance reviews, and clear milestones. Establishing a dedicated oversight team and utilizing independent technical reviews can help mitigate risks associated with cost, schedule, and quality, ensuring the taxpayer investment yields the intended outcome.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: National Cancer Centre of Singapore PTE Ltd (UEI: 595950213)
Address: 900 BAYOU CASOTTE PARKWAY, PASCAGOULA, MS, 04
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $178,849,482
Exercised Options: $178,849,482
Current Obligation: $44,022,537
Timeline
Start Date: 2005-12-22
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2012-09-25
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