DoD awards $50.1M for Combatant Craft Heavy construction, with significant pre-award spending
Contract Overview
Contract Amount: $50,144,274 ($50.1M)
Contractor: Marinette Marine Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-10
End Date: 2027-11-14
Contract Duration: 1,313 days
Daily Burn Rate: $38.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMBATANT CRAFT HEAVY (CCH) CONSTRUCTION
Place of Performance
Location: MARINETTE, MARINETTE County, WISCONSIN, 54143
Plain-Language Summary
Department of Defense obligated $50.1 million to MARINETTE MARINE CORPORATION for work described as: COMBATANT CRAFT HEAVY (CCH) CONSTRUCTION Key points: 1. Contract value represents a substantial investment in specialized maritime assets. 2. The award follows a competitive process, suggesting potential for price discovery. 3. Fixed-price contract type aims to mitigate cost overrun risks for the government. 4. The duration of the contract indicates a long-term need for these craft. 5. The specific nature of 'Combatant Craft Heavy' suggests a niche but critical capability. 6. The awardee has a history in shipbuilding, relevant to this contract's requirements.
Value Assessment
Rating: good
The contract value of $50.1 million for the construction of Combatant Craft Heavy (CCH) appears reasonable given the specialized nature of the equipment. Benchmarking against similar complex vessel construction projects is challenging due to the unique specifications of CCH. However, the firm fixed-price structure suggests the contractor has adequately assessed costs and risks. The pre-award spending of $38.19 million indicates significant upfront investment by the contractor, which could be a positive sign of commitment and capability, or a potential indicator of sunk costs influencing future pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the number of eligible bidders. The presence of two bidders suggests a degree of competition, but the exclusion of other potential sources warrants further investigation into the rationale behind those exclusions. The limited number of bidders may have an impact on the final negotiated price.
Taxpayer Impact: While competition existed, the exclusion of certain sources could mean taxpayers did not benefit from the lowest possible price achievable in a truly open market.
Public Impact
Special Operations Command (SOCOM) personnel will benefit from enhanced maritime mobility and operational capabilities. The contract will result in the delivery of specialized heavy combat craft designed for demanding operational environments. The primary geographic impact is expected to be within the operational theaters where SOCOM conducts missions. The contract supports skilled labor in the shipbuilding and repair industry, particularly in Wisconsin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to exclusion of sources impacting price discovery.
- The significant pre-award spending ($38.19M) could indicate contractor risk or influence on final pricing.
- The specialized nature of the craft may limit the pool of qualified contractors.
- Definitive contract type can sometimes lead to scope creep if not managed tightly.
Positive Signals
- Firm fixed-price contract type helps control costs and provides budget certainty.
- The awardee, Marinette Marine Corporation, has experience in shipbuilding, suggesting technical capability.
- The contract duration (over 3 years) indicates a sustained commitment to this capability.
- The competition, though limited, still involved multiple bidders, fostering some level of price negotiation.
Sector Analysis
This contract falls within the Defense Industrial Base, specifically the shipbuilding and repair sector. This sector is characterized by high capital investment, specialized labor, and long production cycles. The market for specialized military vessels is often dominated by a few large, experienced contractors due to stringent technical requirements and security clearances. The value of this contract is moderate within the context of major naval shipbuilding programs but significant for specialized craft.
Small Business Impact
The data indicates that small business participation is not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor is likely a large business, and opportunities for small businesses would primarily arise through subcontracting, the extent of which is not detailed in this award notice.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a definitive contract, it implies a series of orders will be placed over its duration, each requiring specific oversight. Transparency is facilitated by the contract award notice itself. Accountability measures will be embedded in the contract terms, delivery schedules, and performance metrics. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Special Operations Forces Support Activity
- Naval Vessel Construction
- Maritime Security Craft Procurement
- Department of Defense Shipbuilding Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost impact due to limited bidder pool.
- Need for clear justification for source exclusion.
Tags
defense, department-of-defense, u.s.-special-operations-command, ship-building-and-repairing, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, combatant-craft-heavy, maritime-defense, wisconsin, special-operations-forces
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.1 million to MARINETTE MARINE CORPORATION. COMBATANT CRAFT HEAVY (CCH) CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is MARINETTE MARINE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $50.1 million.
What is the period of performance?
Start: 2024-04-10. End: 2027-11-14.
What is the track record of Marinette Marine Corporation in delivering similar combat craft?
Marinette Marine Corporation, a subsidiary of Fincantieri Marinette Marine, has a significant history in shipbuilding, including naval vessels. They have been involved in constructing Littoral Combat Ships (LCS) for the U.S. Navy and other complex vessels. While their experience is substantial in large-scale shipbuilding, specific experience with the unique 'Combatant Craft Heavy' (CCH) platform requires further verification. The successful delivery of the CCH would build upon their existing capabilities in producing robust, mission-specific maritime assets for military applications.
How does the awarded value compare to similar specialized maritime asset procurements?
Direct comparisons for 'Combatant Craft Heavy' are difficult due to the specialized and often classified nature of such assets. However, considering the $50.1 million award for two craft (implied by the contract value and typical procurement cycles), the cost per craft is substantial. This aligns with the high cost associated with developing and building advanced, mission-critical military platforms. For context, smaller, less specialized patrol boats can cost significantly less, while larger naval vessels run into hundreds of millions or billions. The value appears commensurate with the complexity and intended operational role of CCH.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include technical challenges in meeting the stringent performance requirements of the CCH, potential schedule delays in construction, and cost overruns (though mitigated by the firm fixed-price structure). The exclusion of sources in the competition also presents a risk of not achieving the most competitive price. Mitigation strategies likely involve robust government oversight, detailed technical specifications, phased delivery schedules, and performance incentives or penalties outlined in the contract. The contractor's experience in shipbuilding also serves as a risk mitigator.
What is the expected effectiveness of the Combatant Craft Heavy (CCH) in supporting Special Operations Command missions?
The Combatant Craft Heavy (CCH) is designed to provide Special Operations Forces (SOF) with enhanced capabilities for maritime insertion, extraction, and support operations. These craft are expected to be highly survivable, capable of operating in diverse and potentially hostile environments, and equipped to support various mission profiles, including direct action, reconnaissance, and interdiction. Their effectiveness lies in their ability to transport SOF personnel and equipment rapidly and securely, extending the operational reach and flexibility of SOF units in littoral and riverine areas.
What are the historical spending patterns for Combatant Craft Heavy or similar platforms?
Historical spending data for the specific 'Combatant Craft Heavy' program is not readily available in the provided snippet. However, SOCOM and other branches of the military have consistently invested in specialized maritime platforms to support special operations and naval warfare. Spending on such niche, high-performance craft typically occurs in multi-year cycles, often involving competitive procurements with values ranging from tens to hundreds of millions of dollars, depending on the quantity and complexity of the platforms. This $50.1 million award represents a significant, but not unprecedented, investment in this capability area.
What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award strategy?
This award strategy signifies that the initial solicitation was intended for full and open competition, but specific sources were later excluded from consideration. The reasons for exclusion could range from failure to meet minimum technical requirements, past performance issues, or specific national security concerns. While it allows for competition among the remaining eligible bidders, it inherently limits the breadth of the competitive landscape compared to a truly open solicitation. This approach requires careful justification by the agency to ensure it serves the government's best interests and does not unduly restrict competition.
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
Solicitation ID: H9240523R0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Segretariato Generale Della Presidenza Della Repubblica
Address: 1600 ELY ST, MARINETTE, WI, 54143
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $50,144,285
Exercised Options: $50,144,284
Current Obligation: $50,144,274
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-10
Current End Date: 2027-11-14
Potential End Date: 2027-11-14 00:00:00
Last Modified: 2025-09-08
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