DHS awarded $20.5M to Bollinger Shipyards for two 87-foot coastal patrol boats for Yemen

Contract Overview

Contract Amount: $20,466,246 ($20.5M)

Contractor: Bollinger Shipyards Lockport, L.L.C.

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-11

End Date: 2012-09-10

Contract Duration: 1,095 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSTRUCTION AND DELIVERY OF (2) 87 FOOT COASTAL PATROL BOATS FOR THE COUNTRY OF YEMEN

Place of Performance

Location: LOCKPORT, LAFOURCHE County, LOUISIANA, 70374

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.5 million to BOLLINGER SHIPYARDS LOCKPORT, L.L.C. for work described as: CONSTRUCTION AND DELIVERY OF (2) 87 FOOT COASTAL PATROL BOATS FOR THE COUNTRY OF YEMEN Key points: 1. The contract value represents a significant investment in maritime security cooperation. 2. The sole-source nature of the award warrants scrutiny regarding potential price inflation. 3. The delivery timeline of three years for two vessels may indicate production capacity constraints or complexity. 4. The geographic focus on Yemen highlights a specific foreign policy and security objective. 5. The absence of small business participation suggests this contract was beyond their typical scope or capacity.

Value Assessment

Rating: fair

The contract value of approximately $10.2 million per vessel is difficult to benchmark without specific details on the boats' capabilities and customization for Yemen's needs. Given the sole-source nature, a direct comparison to similar commercially available vessels or competitively bid government contracts is challenging. The fixed-price structure offers some cost certainty, but the overall value proposition is obscured by the lack of competitive pricing information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bollinger Shipyards Lockport, L.L.C., was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple interested parties. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, they limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the potential cost savings that a competitive bidding process might have generated. This could result in a higher overall expenditure for these patrol boats.

Public Impact

The primary beneficiaries are the security forces of Yemen, who will receive enhanced maritime patrol capabilities. The services delivered include the construction and delivery of two specialized coastal patrol boats. The geographic impact is concentrated on Yemen's coastal regions, improving their ability to monitor and secure maritime borders. The contract supports the shipbuilding workforce at Bollinger Shipyards in Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source procurement.
Long delivery timeline for specialized vessels could indicate production bottlenecks or extended lead times.
No small business subcontracting opportunities were mandated, potentially limiting broader economic impact.

Positive Signals

Contract awarded to a known shipbuilder, Bollinger Shipyards, suggesting a degree of confidence in their capabilities.
Firm Fixed Price contract provides cost certainty for the government once awarded.
Delivery of specialized assets to a partner nation supports U.S. foreign policy and security objectives.

Sector Analysis

The shipbuilding and repair industry is a capital-intensive sector involving complex manufacturing processes. Government contracts for naval vessels and patrol boats are a significant segment, often characterized by long lead times, high technical specifications, and substantial costs. This contract for coastal patrol boats fits within the broader defense and security sector, where specialized maritime assets are crucial for national security and international cooperation. Comparable spending benchmarks are difficult to establish due to the unique nature of foreign military sales and specific vessel requirements.

Small Business Impact

This contract did not include any small business set-aside provisions, nor is there an indication of significant subcontracting opportunities for small businesses. The nature of large-scale shipbuilding typically involves prime contractors with extensive facilities and capabilities, often limiting direct participation by smaller firms unless they are specialized suppliers. The absence of small business involvement suggests this contract was awarded based on the prime contractor's capacity and expertise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the U.S. Coast Guard, given their roles in procurement and maritime security. As a foreign military sale, there would also be oversight from the Department of Defense and potentially the Department of State regarding the end-use and effectiveness of the delivered assets. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply to potential fraud, waste, or abuse within the procurement process.

Related Government Programs

Foreign Military Sales Program
Maritime Security Initiatives
U.S. Coast Guard Asset Procurement
Naval Vessel Construction

Risk Flags

Sole-source procurement
Long delivery timeline
Foreign military sale complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.5 million to BOLLINGER SHIPYARDS LOCKPORT, L.L.C.. CONSTRUCTION AND DELIVERY OF (2) 87 FOOT COASTAL PATROL BOATS FOR THE COUNTRY OF YEMEN

Who is the contractor on this award?

The obligated recipient is BOLLINGER SHIPYARDS LOCKPORT, L.L.C..

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 $20.5 million.

What is the period of performance?

Start: 2009-09-11. End: 2012-09-10.

What specific capabilities and features distinguish these 87-foot coastal patrol boats, and how do they align with Yemen's maritime security needs?

The provided data does not detail the specific capabilities and features of the 87-foot coastal patrol boats. However, typical features for such vessels include robust hull construction for open-water operations, advanced navigation and communication systems, deck space for equipment or personnel, and armament capabilities suitable for patrol and interdiction missions. For Yemen, these boats would likely be intended to enhance their ability to combat piracy, smuggling, illegal fishing, and to patrol territorial waters. The exact configuration would be tailored to the specific threats and operational environment faced by the Yemeni Coast Guard or relevant maritime authority. Without further documentation, the precise alignment remains speculative.

What was the justification for awarding this contract on a sole-source basis to Bollinger Shipyards Lockport, L.L.C.?

The justification for a sole-source award typically stems from unique capabilities, urgent requirements, or the unavailability of other responsible sources. For Bollinger Shipyards, it's possible they possessed specific patented technology, unique manufacturing expertise, or had existing production lines already tooled for this specific class of vessel that made them the only viable option within the required timeframe. Alternatively, the U.S. government might have determined that Bollinger was the most suitable contractor based on prior performance, specialized knowledge of the recipient nation's needs, or the need for rapid delivery that only Bollinger could meet. A formal Justification and Approval (J&A) document would typically outline these specific reasons in detail.

How does the per-vessel cost of approximately $10.2 million compare to similar patrol boats procured by the U.S. government or other nations?

Benchmarking the $10.2 million per-vessel cost is challenging without detailed specifications. However, the cost for patrol boats can vary significantly based on size, speed, materials, electronics, armament, and customization. For instance, smaller, less equipped patrol boats might cost a few million dollars, while larger, more sophisticated vessels with advanced combat systems could cost tens or even hundreds of millions. Given these are 87-foot vessels intended for a foreign military sale, the price likely includes not just construction but also specialized equipment, training, and potentially logistical support, which can elevate the cost compared to a standard commercial vessel or a simpler domestic procurement. A direct comparison would require access to detailed specifications of comparable vessels.

What is the track record of Bollinger Shipyards Lockport, L.L.C. in delivering similar maritime assets, particularly for foreign governments?

Bollinger Shipyards Lockport, L.L.C. has a well-established track record in shipbuilding and repair, including the construction of various types of vessels for government and commercial clients. They have previously built patrol boats and other specialized craft for the U.S. Coast Guard and other agencies. Their experience includes delivering vessels that meet stringent military and security requirements. While specific details on their history of delivering similar assets to foreign governments are not provided in the data, their general reputation as a significant U.S. defense contractor suggests they have the capacity and experience to undertake such international projects. Their portfolio often includes vessels designed for law enforcement, security, and military operations.

What are the potential risks associated with the long delivery timeline (1095 days) for these two patrol boats?

A delivery timeline of 1095 days (three years) for two patrol boats, while potentially justified by complexity or production schedules, introduces several risks. Firstly, it increases the duration during which the funds are committed, potentially impacting budget flexibility. Secondly, extended production cycles can lead to obsolescence of technology if not managed carefully, particularly concerning electronics and communication systems. Thirdly, there's an increased risk of cost overruns if the firm-fixed-price contract doesn't adequately account for inflation or unforeseen material cost increases over three years. Lastly, delays in delivery could impact the operational readiness and security objectives of Yemen, potentially affecting the strategic goals of the foreign military sale.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bollinger Shipyards, Inc (UEI: 073253309)

Address: 8365 HIGHWAY 308, LOCKPORT, LA, 01

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,706,246

Exercised Options: $20,466,246

Current Obligation: $20,466,246

Contract Characteristics

Multi-Year Contract: Yes

Timeline