NOAA's $17.4M USNS Capable Conversion Contract Awarded to Puget Sound Commerce Center

Contract Overview

Contract Amount: $17,417,738 ($17.4M)

Contractor: Puget Sound Commerce Center, Inc.

Awarding Agency: Department of Commerce

Start Date: 2005-08-22

End Date: 2008-09-15

Contract Duration: 1,120 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: DESIGN AND CONVERSION OF THE USNS CAPABLE

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $17.4 million to PUGET SOUND COMMERCE CENTER, INC. for work described as: DESIGN AND CONVERSION OF THE USNS CAPABLE Key points: 1. Contract value of $17.4M for ship conversion. 2. Awarded to Puget Sound Commerce Center, Inc. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Ship Building and Repairing. 5. Contract type is Fixed Price Incentive.

Value Assessment

Rating: fair

The contract value of $17.4M for ship conversion appears to be within a reasonable range for such specialized work, though direct comparable contracts are difficult to pinpoint without more detailed scope information. The fixed-price incentive structure suggests an effort to control costs while allowing for adjustments based on performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be broad, specific exclusions were applied, potentially limiting the pool of eligible bidders. This method can impact price discovery by reducing the number of competitive offers.

Taxpayer Impact: The impact on taxpayers is moderate, as the limited competition may have led to a higher price than a fully open process, but the incentive structure aims to mitigate cost overruns.

Public Impact

Ensures the operational readiness of a key NOAA vessel. Supports the maritime industry and specialized shipbuilding/repair services. The conversion likely enhances the vessel's capabilities for scientific research or operational missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Fixed Price Incentive contract type can lead to cost growth if not managed carefully.
Contract duration of 1120 days is substantial.

Positive Signals

Awarded to a specific company for a specialized task.
Clear start and end dates for the project.
The vessel is designated for NOAA's use, implying a public service purpose.

Sector Analysis

The Ship Building and Repairing sector is highly specialized, often involving complex engineering and significant capital investment. Government contracts in this area are crucial for maintaining naval and research fleets, with pricing benchmarks varying widely based on vessel type, scope of work, and technological requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). The nature of large-scale ship conversion typically requires extensive facilities and expertise, which are more commonly found in larger, established firms within the shipbuilding and repair industry.

Oversight & Accountability

Oversight would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability for performance and cost would be tied to the terms of the Fixed Price Incentive contract, including milestones and final delivery.

Related Government Programs

Ship Building and Repairing
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Potential for cost overruns due to FPI contract type.
Limited competition may have reduced price competitiveness.
Lack of small business participation.
Long contract duration increases exposure to market and technological changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $17.4 million to PUGET SOUND COMMERCE CENTER, INC.. DESIGN AND CONVERSION OF THE USNS CAPABLE

Who is the contractor on this award?

The obligated recipient is PUGET SOUND COMMERCE CENTER, INC..

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 $17.4 million.

What is the period of performance?

Start: 2005-08-22. End: 2008-09-15.

What specific exclusions were made in the 'Full and Open Competition After Exclusion of Sources' and what was the justification?

The justification for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award typically relates to factors such as unique capabilities, prior experience with a specific vessel, proprietary technology, or urgent and compelling needs that only certain contractors can meet. Without further details on this specific contract, it's impossible to determine the exact reasons for exclusion, but they would need to be formally documented and justified to ensure fair and reasonable procurement practices.

How did the fixed-price incentive structure impact the final cost compared to initial projections?

A Fixed Price Incentive (FPI) contract establishes a target cost, target profit, and a price ceiling. The government and contractor share in any cost savings or overruns between the target cost and the ceiling, based on a pre-defined formula. To assess the impact, one would need to compare the final negotiated cost against the initial target cost and examine the sharing ratio to understand how cost variances were allocated, ultimately determining the final taxpayer expenditure.

What are the long-term benefits and operational improvements expected from the USNS Capable conversion?

The long-term benefits of the USNS Capable conversion likely center on enhanced operational capabilities for NOAA's missions, such as improved scientific data collection, increased deployment range, or the integration of new technologies. These improvements would contribute to more effective research, monitoring, and response efforts in areas like climate science, oceanography, or fisheries management, ultimately providing greater value to the public through better environmental understanding and resource stewardship.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 1801 16TH AVE SW, SEATTLE, WA, 98134

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

Financial Breakdown

Contract Ceiling: $17,417,738

Exercised Options: $17,417,738

Current Obligation: $17,417,738

Timeline