NOAA Ship Rainier Major Repair Period contract awarded to Vigor Marine LLC for $17.2M

Contract Overview

Contract Amount: $17,221,192 ($17.2M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Commerce

Start Date: 2009-09-22

End Date: 2011-01-20

Contract Duration: 485 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::13 1440::TAS RECOVERY - NOAA SHIP RAINIER MAJOR REPAIR PERIOD (MRP) THE PURPOSE OF THIS CONTRACT IS TO COMPLETE THE MAJOR REPAIR PERIOD FOR THE NOAA SHIP RAINIER. ARRA::YES::ARRA

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Commerce obligated $17.2 million to VIGOR MARINE LLC for work described as: TAS::13 1440::TAS RECOVERY - NOAA SHIP RAINIER MAJOR REPAIR PERIOD (MRP) THE PURPOSE OF THIS CONTRACT IS TO COMPLETE THE MAJOR REPAIR PERIOD FOR THE NOAA SHIP RAINIER. ARRA::YES::ARRA Key points: 1. Contract value of $17.2 million for major repairs to the NOAA Ship Rainier. 2. Awarded to Vigor Marine LLC, a company with experience in shipbuilding and repair. 3. The contract was competed under full and open competition after exclusion of sources. 4. The repair period was scheduled to last 485 days. 5. This contract falls under the Ship Building and Repairing NAICS code. 6. The contract was funded under the American Recovery and Reinvestment Act (ARRA).

Value Assessment

Rating: fair

The contract value of $17.2 million for major repairs to a NOAA vessel appears within a reasonable range for such specialized work. However, without specific details on the scope of repairs, it is difficult to benchmark against similar contracts. The firm fixed-price nature suggests that cost overruns were intended to be borne by the contractor, which can be a positive indicator of value if the work is completed as specified. Further analysis would require comparing the specific repair tasks and their associated costs to industry standards for vessel maintenance and overhaul.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the number of bidders. The specific reasons for excluding sources are not detailed, which raises questions about the extent of competition achieved. A limited competition might lead to less aggressive pricing compared to a truly full and open process with maximum bidder participation.

Taxpayer Impact: The exclusion of certain sources, even if justified, could mean that taxpayers did not benefit from the most competitive pricing possible. This procurement method warrants scrutiny to ensure fairness and optimal use of taxpayer funds.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific research missions, which rely on the operational readiness of the NOAA Ship Rainier. The services delivered include major repairs and maintenance to ensure the vessel's structural integrity and operational capabilities. The geographic impact is primarily on the operational areas of the NOAA Ship Rainier, which conducts research and surveys. The contract supports the maritime repair industry, likely involving skilled labor in shipbuilding and repair sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, impacting price discovery.
Lack of detailed scope of work makes it difficult to assess value for money definitively.
Firm Fixed Price contract could lead to disputes if unforeseen issues arise during repairs.

Positive Signals

Awarded under ARRA, indicating a focus on economic stimulus and infrastructure investment.
Vigor Marine LLC's experience in shipbuilding and repair suggests capability to perform the work.
Firm Fixed Price contract provides cost certainty for the government if scope is well-defined.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a specialized industry focused on the construction, maintenance, and overhaul of maritime vessels. The market for major vessel repairs is often concentrated among a few experienced shipyards capable of handling complex projects. Spending in this sector is critical for maintaining national maritime assets, including research vessels, commercial fleets, and naval ships. Comparable spending benchmarks would typically involve analyzing costs for similar large-scale repair projects on specialized vessels.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Vigor Marine LLC, would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of NOAA, a component of the Department of Commerce. Mechanisms would include contract administration, performance monitoring, and potentially inspections during the repair period. Accountability is ensured through the firm fixed-price contract terms, which obligate the contractor to deliver the specified repairs. Transparency would be facilitated through contract award notices and reporting requirements, though detailed public access to all oversight activities may vary.

Related Government Programs

NOAA Vessel Operations
Maritime Infrastructure Maintenance
Shipbuilding and Repair Contracts
ARRA Funded Projects

Risk Flags

Limited Competition Potential
Scope Definition Risk
Unforeseen Repair Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $17.2 million to VIGOR MARINE LLC. TAS::13 1440::TAS RECOVERY - NOAA SHIP RAINIER MAJOR REPAIR PERIOD (MRP) THE PURPOSE OF THIS CONTRACT IS TO COMPLETE THE MAJOR REPAIR PERIOD FOR THE NOAA SHIP RAINIER. ARRA::YES::ARRA

Who is the contractor on this award?

The obligated recipient is VIGOR MARINE 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 $17.2 million.

What is the period of performance?

Start: 2009-09-22. End: 2011-01-20.

What is the track record of Vigor Marine LLC in performing similar major vessel repair contracts for government entities?

Vigor Marine LLC is a significant player in the shipbuilding and repair industry, with a history of performing complex projects. While specific details on past NOAA contracts are not provided in this data snippet, the company has experience with various government contracts, including those for the U.S. Navy and other maritime agencies. Their expertise typically encompasses a wide range of vessel types and repair scopes, from routine maintenance to major overhauls and conversions. Assessing their track record would involve reviewing past performance evaluations, on-time delivery rates, and adherence to budget on comparable projects. The fact that they were awarded this contract suggests they met NOAA's pre-qualification criteria for capability and experience in ship repair.

How does the $17.2 million cost compare to the typical cost of major repair periods for research vessels of similar size and complexity?

Benchmarking the $17.2 million cost requires detailed information about the specific repairs undertaken on the NOAA Ship Rainier, its size, age, and the complexity of its systems. Major repair periods for research vessels can vary significantly based on factors like hull integrity, propulsion systems, scientific equipment overhaul, and regulatory compliance upgrades. Generally, such extensive work can range from several million to tens of millions of dollars. Without a detailed breakdown of the work scope (e.g., dry-docking, steel replacement, engine overhaul, system upgrades), a precise comparison is challenging. However, for a vessel undergoing a 'major repair period,' $17.2 million is plausible, especially if it involves significant structural work or system replacements.

What are the primary risks associated with this firm fixed-price contract for major ship repairs?

The primary risk with a firm fixed-price (FFP) contract for major ship repairs lies in the potential for unforeseen issues arising during the repair process. Ships, especially older ones, can harbor hidden structural damage, corrosion, or system failures not apparent during the initial inspection. If these issues require extensive additional work beyond the original scope, the contractor (Vigor Marine LLC) bears the cost under an FFP agreement, potentially leading to financial strain for the contractor or pressure to cut corners. Conversely, if the scope is underestimated by the government, the contractor might seek change orders, increasing the final cost. Effective risk management involves thorough initial assessments, clear scope definition, and robust government oversight to identify and address potential problems promptly.

What is the expected impact of these repairs on the operational effectiveness and scientific mission of the NOAA Ship Rainier?

The major repair period is intended to significantly enhance the operational effectiveness and extend the service life of the NOAA Ship Rainier. By addressing structural issues, upgrading critical systems (such as propulsion, navigation, or power generation), and ensuring compliance with safety and environmental regulations, the repairs aim to restore the vessel to optimal performance. This directly supports NOAA's scientific mission by ensuring the ship can reliably conduct its planned research expeditions, data collection, and surveys in various oceanic conditions. Improved reliability reduces the risk of mission cancellations or delays due to mechanical failures, thereby maximizing the scientific return on investment for NOAA's programs.

How has NOAA's spending on ship maintenance and repair evolved over the years, and does this contract represent a significant deviation?

Analyzing NOAA's historical spending on ship maintenance and repair would require access to multi-year budget data and contract databases. Such analysis would reveal trends in investment in its fleet, including the frequency and scale of major repair periods. This specific $17.2 million contract for the NOAA Ship Rainier represents a substantial investment for a single vessel's major overhaul. Whether it is a 'significant deviation' depends on NOAA's overall fleet maintenance strategy and budget allocation. If NOAA has historically deferred major maintenance, this contract might represent a catch-up effort. Conversely, if NOAA typically invests heavily in its fleet, this could be part of a regular cycle. Understanding the context of NOAA's fleet management and budget priorities is crucial for assessing its significance.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

Address: 5555 N CHANNEL AVE BLDG 71, PORTLAND, OR, 90

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

Financial Breakdown

Contract Ceiling: $17,221,192

Exercised Options: $17,221,192

Current Obligation: $17,221,192

Timeline