Navy awards $66.8M for Full Rate Production of CCM FMS, with Vigor Works LLC as prime

Contract Overview

Contract Amount: $66,875,826 ($66.9M)

Contractor: Vigor Works LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-23

End Date: 2026-10-30

Contract Duration: 2,320 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FULL RATE PRODUCTION (FRP)FOR CCM FMS

Place of Performance

Location: CLACKAMAS, CLACKAMAS County, OREGON, 97015

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $66.9 million to VIGOR WORKS LLC for work described as: FULL RATE PRODUCTION (FRP)FOR CCM FMS Key points: 1. Contract value of $66.8M for FRP of CCM FMS indicates significant investment in naval capabilities. 2. Vigor Works LLC, the prime contractor, has secured a substantial award, suggesting strong performance or market position. 3. The contract type, Firm Fixed Price, shifts cost risk to the contractor, potentially leading to more predictable spending. 4. A long performance period of 2320 days (approx. 6.3 years) suggests a complex, long-term project. 5. The award falls under the Boat Building NAICS code, highlighting a specific segment of defense procurement. 6. The contract's duration and value point to a critical component of the Navy's operational readiness.

Value Assessment

Rating: good

The contract value of $66.8M for Full Rate Production of CCM FMS appears to be a significant investment. Benchmarking against similar large-scale naval shipbuilding or modernization contracts would provide better context for value for money. The Firm Fixed Price (FFP) structure is generally favorable for the government in managing cost overruns, assuming the initial pricing was competitive. Without specific per-unit cost data or comparisons to industry benchmarks for similar systems, a definitive value assessment is challenging, but the scale suggests a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was initially broad, specific sources may have been excluded for defined reasons, but the overall intent was competitive. The number of bidders is not specified, but the 'full and open' nature suggests a robust bidding process was intended, which typically fosters price discovery and competitive pricing.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and ensuring the government receives the best value. This process helps prevent inflated costs that can occur with less competitive solicitations.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive the CCM FMS systems, enhancing its operational capabilities. The services delivered include the full rate production of CCM FMS, likely involving manufacturing, integration, and testing. The geographic impact is primarily centered around the contractor's facilities in Oregon, but the end-use is naval operations globally. Workforce implications include job creation and sustainment at Vigor Works LLC and its supply chain, particularly in the maritime industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial pricing assumptions were inaccurate, despite FFP contract type.
Dependence on a single prime contractor (Vigor Works LLC) for a critical defense system.
Risk of schedule delays impacting naval readiness if production or delivery faces unforeseen challenges.
Supply chain vulnerabilities could impact production continuity.
Ensuring long-term sustainment and maintenance post-production.

Positive Signals

Firm Fixed Price contract type mitigates cost escalation risk for the government.
Full and open competition suggests a competitive bidding process, likely resulting in favorable pricing.
Long contract duration allows for stable planning and resource allocation for the contractor.
Award to an established entity (Vigor Works LLC) may indicate reliability and proven capability.
The specific nature of the award (FRP) suggests a mature system moving into scaled production.

Sector Analysis

The defense sector, particularly naval shipbuilding and systems integration, is characterized by high-value, long-term contracts. The market involves specialized engineering, manufacturing, and technological expertise. This contract for Full Rate Production of CCM FMS fits within this context, representing a significant investment in a specific naval technology. Comparable spending benchmarks would involve looking at other major defense platform production contracts, which often run into hundreds of millions or billions of dollars over their lifecycle.

Small Business Impact

The provided data indicates that small business participation (SB) is false and subcontracting (SS) is false for this specific award. This suggests that the prime contractor, Vigor Works LLC, is not obligated to meet small business set-aside goals for this contract, nor is there a specific subcontracting plan detailed in this award notice. Consequently, the direct impact on the small business ecosystem from this particular contract appears limited, though Vigor Works LLC may engage small businesses within its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring Vigor Works LLC to deliver specified products within agreed-upon costs and timelines. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Ship Production
Defense Systems Integration
Maritime Combat Systems
US Navy Procurement
Weapon Systems Manufacturing

Risk Flags

Potential for schedule slippage due to production scale-up.
Supply chain dependencies for critical components.
Long-term sustainment planning required post-production.
Ensuring consistent quality across large-volume production.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.9 million to VIGOR WORKS LLC. FULL RATE PRODUCTION (FRP)FOR CCM FMS

Who is the contractor on this award?

The obligated recipient is VIGOR WORKS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $66.9 million.

What is the period of performance?

Start: 2020-06-23. End: 2026-10-30.

What is the specific function and strategic importance of the CCM FMS system being produced under this contract?

The CCM FMS (likely referring to Combatant Craft Medium Family of Systems) is a critical component of naval special warfare and expeditionary operations. These craft are designed for various missions, including troop insertion/extraction, reconnaissance, and direct action support. Their strategic importance lies in providing naval forces with versatile, high-performance platforms capable of operating in littoral and open-ocean environments, enhancing force projection and operational flexibility. The Full Rate Production award signifies that the system has passed developmental and initial production phases and is now being manufactured at scale to meet fleet demand.

How does the $66.8M contract value compare to historical spending on similar naval craft production or modernization programs?

A direct comparison of the $66.8M value requires identifying highly similar programs. However, in the context of naval platforms, this figure represents a substantial, but not exceptionally large, award for full rate production of a specific craft system. Larger naval programs, such as shipbuilding for destroyers or aircraft carriers, can run into billions of dollars. Programs for specialized craft like the CCM FMS, especially during their full rate production phase, often fall within the tens to low hundreds of millions of dollars range over their contract duration. This award suggests a significant commitment to equipping the fleet with these particular assets.

What are the key performance indicators (KPIs) or milestones Vigor Works LLC must meet to fulfill this contract successfully?

While specific KPIs are not detailed in the award abstract, typical performance indicators for a Full Rate Production contract of this nature would include: adherence to production schedules (e.g., number of craft delivered per quarter/year), meeting quality control standards (e.g., defect rates, test results), compliance with technical specifications and design requirements, and potentially performance metrics related to the craft's operational capabilities once delivered. Milestones would likely include the successful completion of production batches, delivery of final operational craft, and potentially post-delivery support or training requirements.

What is Vigor Works LLC's track record with the Department of the Navy and similar defense contracts?

Vigor Works LLC has a history of performing work for the Department of Defense, including contracts related to vessel construction, repair, and maintenance. Their experience often involves specialized maritime platforms. Securing a Full Rate Production award for a system like the CCM FMS suggests a demonstrated capability and a positive performance history with the Navy, indicating they have successfully navigated previous contract phases, potentially including prototypes, testing, and low-rate initial production. Their portfolio likely includes various naval vessel types and support services.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or cost overruns, despite the FFP structure?

Despite the Firm Fixed Price (FFP) structure, risks can still exist. Technical risks might involve unforeseen complexities in scaling up production or integrating new technologies. Schedule delays could arise from supply chain disruptions, labor issues, or manufacturing bottlenecks. While FFP shifts cost overrun risk to the contractor, significant delays or technical failures could still lead to contract disputes, performance penalties, or the need for contract modifications, indirectly impacting the government's overall program cost and readiness timeline. The long duration of the contract also inherently increases the potential for encountering such risks.

How has spending on naval craft production evolved over the past 5-10 years, and where does this contract fit within that trend?

Spending on naval craft production has generally remained robust, driven by modernization efforts, fleet expansion, and the need for specialized platforms for various mission sets (e.g., special operations, littoral combat, patrol). Over the past 5-10 years, there has been a continued emphasis on acquiring advanced, multi-mission capable craft. This $66.8M award for Full Rate Production of CCM FMS fits within this trend by representing a significant investment in a specific, modern naval capability. It aligns with the Navy's strategy to field adaptable platforms that can support a wide range of operational requirements in complex environments.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222211R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

Address: 9700 SE LAWNFIELD RD, CLACKAMAS, OR, 97015

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,875,826

Exercised Options: $66,875,826

Current Obligation: $66,875,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0080

IDV Type: IDC

Timeline