Commerce Awards $13M for New Swath Ship Construction to Bollinger Mississippi Shipbuilding
Contract Overview
Contract Amount: $13,040,808 ($13.0M)
Contractor: Bollinger Mississippi Shipbuilding, LLC
Awarding Agency: Department of Commerce
Start Date: 2003-12-24
End Date: 2012-09-20
Contract Duration: 3,193 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONSTRUCTION OF A NEW SWATH SHIP
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39568
Plain-Language Summary
Department of Commerce obligated $13.0 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: CONSTRUCTION OF A NEW SWATH SHIP Key points: 1. The contract awarded to Bollinger Mississippi Shipbuilding, LLC for $13.04 million covers the construction of a new Swath ship. 2. This project falls under the Ship Building and Repairing NAICS code 336611. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm fixed price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $13.04 million for a new Swath ship appears reasonable given the complexity of shipbuilding. Benchmarking against similar specialized vessel construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, ensuring value for money in the procurement of this specialized vessel.
Public Impact
Enhances NOAA's research and operational capabilities with a new Swath ship. Supports the maritime industry and shipbuilding sector in Mississippi. Represents a significant investment in national oceanic and atmospheric infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 40 / 10
Warning Flags
- Long contract duration (3193 days) may introduce risks related to cost escalation and technological obsolescence.
- Potential for scope creep given the extended timeline.
Positive Signals
- Firm fixed price contract helps mitigate cost overrun risks.
- Full and open competition suggests a competitive market for this type of vessel.
Sector Analysis
The shipbuilding and repair sector is capital-intensive and subject to cyclical demand. This contract for a specialized Swath ship aligns with NOAA's mission-critical needs, potentially representing a significant portion of a shipyard's annual revenue.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract was awarded by the Department of Commerce, National Oceanic and Atmospheric Administration. Oversight would typically involve program management, quality assurance, and financial monitoring throughout the contract lifecycle.
Related Government Programs
- Ship Building and Repairing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long contract duration (3193 days)
- Potential for cost escalation over the contract period
- Risk of technological obsolescence
- Complexity of specialized vessel construction
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 $13.0 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. CONSTRUCTION OF A NEW SWATH SHIP
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 $13.0 million.
What is the period of performance?
Start: 2003-12-24. End: 2012-09-20.
What is the specific operational advantage a Swath ship offers compared to traditional vessel designs for NOAA's mission?
Swath (Small Waterplane Area Twin Hull) ships offer superior stability in rough seas due to their submerged hulls and slender columns. This stability is crucial for NOAA's operations, enabling more consistent data collection, safer deployment of equipment, and improved crew comfort during research expeditions or environmental monitoring, even in challenging oceanic conditions.
What are the primary risks associated with a contract duration of 3193 days for shipbuilding?
A contract duration of 3193 days (over 8 years) for shipbuilding presents significant risks. These include potential cost increases due to inflation, fluctuations in material prices, and labor costs. There's also a risk of technological advancements making the ship design or systems obsolete before delivery. Furthermore, the long timeline increases the likelihood of unforeseen regulatory changes or environmental compliance issues.
How effectively does the firm fixed price contract mitigate risks for this long-term shipbuilding project?
The firm fixed price contract is intended to cap the government's cost exposure, shifting most of the financial risk to the contractor. However, for a project spanning over 8 years, the contractor may have built significant contingency into the initial price to cover potential cost increases. While it protects against cost overruns, it might not guarantee the lowest possible price compared to other contract types if costs decrease significantly.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
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: $15,312,881
Exercised Options: $13,040,808
Current Obligation: $13,040,808
Timeline
Start Date: 2003-12-24
Current End Date: 2012-09-20
Potential End Date: 2012-09-20 00:00:00
Last Modified: 2012-10-02
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