DHS Awards $18.87M for 10 Small Craft Boats to Marinette Marine Corporation
Contract Overview
Contract Amount: $18,868,110 ($18.9M)
Contractor: Marinette Marine Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2008-03-03
End Date: 2011-02-25
Contract Duration: 1,089 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RB-M HULLS 45621-45630-SMALL CRAFT
Place of Performance
Location: MARINETTE, MARINETTE County, WISCONSIN, 54143
Plain-Language Summary
Department of Homeland Security obligated $18.9 million to MARINETTE MARINE CORPORATION for work described as: RB-M HULLS 45621-45630-SMALL CRAFT Key points: 1. The contract value of $18.87 million for 10 boats indicates a significant investment in maritime capabilities. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The firm fixed-price contract type aims to control costs and transfer risk to the contractor. 4. The U.S. Coast Guard's acquisition of these small craft is crucial for operational readiness and security.
Value Assessment
Rating: good
The average price per boat is approximately $1.89 million. This is a substantial cost, and without specific benchmarks for comparable advanced small craft, it's difficult to definitively assess value. However, the firm fixed-price nature suggests an effort to lock in costs.
Cost Per Unit: $1,886,811
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under a larger contract structure implies that the initial competition was for the overarching agreement, with this order being a specific task.
Taxpayer Impact: Taxpayer funds are being used for essential maritime security assets. The competitive award process aims to ensure the best possible price for these specialized vessels.
Public Impact
Enhances U.S. Coast Guard's operational capacity for patrol, interdiction, and search and rescue missions. Supports national security by bolstering maritime domain awareness and enforcement capabilities. Contributes to the shipbuilding industry and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during construction.
- Long-term maintenance and operational costs not detailed in this award.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition promotes competitive pricing.
- Acquisition supports critical Coast Guard missions.
Sector Analysis
The shipbuilding and boat building sector is capital-intensive and often involves complex, long-term contracts. Spending benchmarks vary widely based on vessel size, complexity, and intended use. This award falls within the specialized small craft category.
Small Business Impact
While Marinette Marine Corporation is a significant entity, the data does not indicate whether small businesses were involved as subcontractors or suppliers in this specific delivery order. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award was made via a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. Oversight would focus on adherence to contract terms, delivery schedules, and quality standards.
Related Government Programs
- Boat Building
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Contract duration is substantial, increasing risk of cost escalation or obsolescence.
- Per-unit cost is high, requiring justification through specialized capabilities.
- Lack of detail on small business participation.
- Potential for unforeseen technical challenges during construction.
Tags
boat-building, department-of-homeland-security, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $18.9 million to MARINETTE MARINE CORPORATION. RB-M HULLS 45621-45630-SMALL CRAFT
Who is the contractor on this award?
The obligated recipient is MARINETTE MARINE CORPORATION.
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 $18.9 million.
What is the period of performance?
Start: 2008-03-03. End: 2011-02-25.
What is the specific operational role and required capabilities of these small craft to justify the per-unit cost?
The specific operational role and required capabilities of these small craft are critical to understanding the $1.89 million per-unit cost. If these are highly specialized vessels designed for demanding environments, advanced propulsion, surveillance equipment, or unique hull designs, the cost could be justified. Without detailed specifications, it's challenging to benchmark against standard patrol boats.
What are the potential risks associated with the 1089-day duration of this contract?
The 1089-day duration (approximately 3 years) presents several potential risks. These include the possibility of material cost fluctuations, changes in technology rendering the craft less effective by delivery, contractor performance issues over an extended period, and potential delays impacting the Coast Guard's operational timelines. Managing these risks requires robust contract oversight and contingency planning.
How effectively does this acquisition align with the U.S. Coast Guard's current and future strategic needs?
The effectiveness of this acquisition hinges on how well these small craft align with the U.S. Coast Guard's strategic needs. If they are intended to replace aging assets or fill critical capability gaps in areas like drug interdiction, search and rescue, or port security, the investment is likely effective. Regular reviews of operational requirements and fleet modernization plans are necessary to ensure continued alignment.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Consiglio Nazionale Delle Ricerche (UEI: 655149347)
Address: 1600 ELY ST, MARINETTE, WI, 54143
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,868,110
Exercised Options: $18,868,110
Current Obligation: $18,868,110
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSCG2306DARB001
IDV Type: IDC
Timeline
Start Date: 2008-03-03
Current End Date: 2011-02-25
Potential End Date: 2011-02-25 00:00:00
Last Modified: 2021-05-10
More Contracts from Marinette Marine Corporation
- Detail Design and Construction of Ffg(x) Guided Missile Frigate — $2.6B (Department of Defense)
- 200504!089435!1700!n00025!naval Facilities Engineering Com!n0002503c0002 !A!N! !N! !p00011!20040713!20050117!006135388!006135388!006073183!n!marinette Marine Corporation !1600 ELY ST !marinette !wi!54143!49300!075!55!marinette !marinette !wisconsin !+000000630953!n!n!000000000000!1910!transport Vessels, Passenger and Troop !A3 !ships !000 !* !336611!a!a!3!a!s!d! ! !20200930!B! ! !A! !d!u!j!1!001!n!1b!a!n!z! ! !N!C!N! ! ! !z!z!a!a!000!a!b!n! ! ! !Y!1725!N00025!0001! ! — $280.7M (Department of Defense)
- Clin 6003G Hulls 127-156, Clin 6003H Hulls 157-166, and 15 Months of Program Management — $88.2M (Department of Homeland Security)
- TAS::13 1440::TAS Recovery - Detailed Design and Construction of Fisheries Survey Vessel 6 (FSV 6) — $74.7M (Department of Commerce)
- Purchase RB-M Hulls 45667-45696 — $63.6M (Department of Homeland Security)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)