SAFE BOATS INTERNATIONAL LLC awarded $12.5M for boat building by DHS, highlighting delivery order for Coast Guard

Contract Overview

Contract Amount: $12,520,210 ($12.5M)

Contractor: Safe Boats International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-09-15

End Date: 2005-11-07

Contract Duration: 784 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: PORT ORCHARD, KITSAP County, WASHINGTON, 98367

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.5 million to SAFE BOATS INTERNATIONAL LLC for work described as: Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through performance history and contract type. 4. Performance context is framed by the delivery order nature and fixed-price terms. 5. Sector positioning within maritime defense and security is a key consideration.

Value Assessment

Rating: good

The contract value of $12.5 million for boat building appears reasonable given the scope and duration. Benchmarking against similar Coast Guard vessel procurements suggests competitive pricing. The firm fixed-price structure also indicates a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 6 bidders indicates a healthy level of market interest and competition, which typically leads to better price discovery and value for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving essential assets for its maritime security and law enforcement missions. The contract delivers specialized boats crucial for patrol, interdiction, and search and rescue operations. The geographic impact is national, supporting Coast Guard operations across U.S. waters and coastlines. Workforce implications include skilled labor in boat manufacturing and maintenance within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in delivery orders if not managed tightly.
Reliance on a single contractor for specific boat models could pose long-term supply chain risks.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market and potential for competitive pricing.
Awarded to a known entity with a track record in boat building.

Sector Analysis

The maritime defense sector is characterized by specialized manufacturing and high-value contracts. This award fits within the broader category of naval vessel construction and procurement, where the U.S. Coast Guard is a significant customer. Spending in this sector is often driven by national security needs and fleet modernization efforts.

Small Business Impact

While this specific award does not indicate a small business set-aside, the prime contractor's use of subcontractors could provide opportunities for small businesses within the supply chain. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight is provided by the Department of Homeland Security and the U.S. Coast Guard contracting officers. Performance monitoring and acceptance criteria are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

U.S. Coast Guard Cutter Procurement
Naval Vessel Construction Contracts
Homeland Security Maritime Assets

Risk Flags

Potential for delivery delays
Performance variability in maritime conditions
Long-term maintenance and support costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.5 million to SAFE BOATS INTERNATIONAL LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SAFE BOATS INTERNATIONAL LLC.

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 $12.5 million.

What is the period of performance?

Start: 2003-09-15. End: 2005-11-07.

What is SAFE BOATS INTERNATIONAL LLC's track record with the U.S. Coast Guard and similar agencies?

SAFE BOATS INTERNATIONAL LLC has a significant history of providing vessels to the U.S. Coast Guard and other maritime agencies. Their portfolio includes various patrol boats, response craft, and specialized vessels designed for demanding operational environments. Reviews of past performance indicate a generally positive track record, with successful delivery of numerous contracts. The company is known for its durable and high-performance craft, often customized to specific agency requirements. This contract, valued at approximately $12.5 million, aligns with their established capabilities and previous work with federal clients, suggesting a continuation of a successful working relationship.

How does the $12.5 million award compare to other similar boat building contracts for the Coast Guard?

The $12.5 million award for boat building by SAFE BOATS INTERNATIONAL LLC to the U.S. Coast Guard appears to be within a reasonable range for specialized maritime assets. Comparing this to other Coast Guard procurements for similar types of vessels, such as patrol boats or response craft, suggests that the pricing is competitive. The number of bidders (6) in this full and open competition also supports the notion that the price reflects market conditions. Without specific details on the exact specifications and quantities of boats procured under this delivery order, a precise benchmark is difficult, but the overall value aligns with industry standards for government maritime contracts of this nature.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential delays in delivery, performance issues with the vessels, and cost overruns if not managed effectively, although the firm fixed-price (FFP) structure mitigates the latter. Mitigation strategies likely involve robust contract oversight by the U.S. Coast Guard, including detailed technical specifications, phased delivery schedules with acceptance testing at key milestones, and performance bonds. The contractor's experience and established relationship with the agency also serve as a mitigating factor. Furthermore, the full and open competition process may incentivize the contractor to perform diligently to maintain future opportunities.

What is the expected effectiveness of the boats procured under this contract for the Coast Guard's missions?

The boats procured under this contract are expected to enhance the U.S. Coast Guard's operational effectiveness across a range of missions. As specialized assets, they are likely designed for specific roles such as maritime law enforcement, search and rescue, counter-terrorism, and port security. The durability and performance characteristics typical of SAFE BOATS INTERNATIONAL LLC products suggest they will be reliable in challenging maritime conditions. Successful delivery and integration of these vessels will directly contribute to the Coast Guard's ability to maintain situational awareness, respond rapidly to incidents, and project presence in U.S. waters, thereby bolstering national security and public safety.

How has federal spending on boat building and maritime assets evolved over the past five years?

Federal spending on boat building and maritime assets has remained a significant component of defense and homeland security budgets over the past five years. While specific figures fluctuate based on modernization cycles and emerging threats, agencies like the U.S. Coast Guard, Navy, and Department of Homeland Security consistently allocate substantial funds to acquiring and maintaining vessels. Trends indicate a focus on technologically advanced platforms, increased durability, and platforms capable of operating in diverse environments. Spending is influenced by geopolitical factors, domestic security needs, and the lifecycle of existing fleets. The overall trend suggests sustained, albeit variable, investment in this critical sector.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8800 SW BARNEY WHITE RD, PORT ORCHARD, WA, 98367

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $50,747

Exercised Options: $50,747

Current Obligation: $12,520,210

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: DTCG2302DDNQ293

IDV Type: IDC

Timeline