Coast Guard awards $56.6M for 30 patrol boats, with delivery orders extending through 2014
Contract Overview
Contract Amount: $56,614,620 ($56.6M)
Contractor: Marinette Marine Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2009-03-23
End Date: 2014-06-20
Contract Duration: 1,915 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 30 BOATS
Place of Performance
Location: MARINETTE, MARINETTE County, WISCONSIN, 54143
Plain-Language Summary
Department of Homeland Security obligated $56.6 million to MARINETTE MARINE CORPORATION for work described as: 30 BOATS Key points: 1. Value for money appears reasonable given the specialized nature of patrol boat construction. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Potential risks include delivery delays and performance issues common in complex shipbuilding projects. 4. This contract supports the Coast Guard's operational readiness and maritime security missions. 5. The sector is dominated by a few large shipbuilders capable of meeting stringent military specifications.
Value Assessment
Rating: good
The average cost per boat is approximately $1.89 million. Benchmarking against similar Coast Guard patrol boat procurements indicates this pricing is within a competitive range, considering the specific requirements and customization involved. The firm-fixed-price structure helps manage cost overruns, but the total value reflects the complexity of building 30 specialized vessels.
Cost Per Unit: Approximately $1.89 million per boat.
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of multiple bidders typically leads to more favorable pricing for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging efficient production methods.
Public Impact
The U.S. Coast Guard benefits from enhanced operational capabilities for maritime law enforcement and security. Thirty specialized patrol boats will be delivered, increasing the fleet's capacity for various missions. The primary geographic impact is within U.S. waters and coastal regions, supporting national security. The contract supports skilled labor in the shipbuilding industry, particularly in Wisconsin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule slippage in complex shipbuilding projects.
- Ensuring consistent quality across all 30 delivered vessels.
- Managing the long-term maintenance and operational costs of the new fleet.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract type limits cost escalation risks.
- Supports a critical national security agency (Coast Guard).
Sector Analysis
The shipbuilding and boat manufacturing sector is characterized by high capital investment, specialized labor, and stringent regulatory requirements. Contracts for naval and coast guard vessels are typically awarded to a limited number of experienced prime contractors. This $56.6 million award represents a significant investment in maritime patrol capabilities, fitting within the broader defense and security spending landscape.
Small Business Impact
This contract does not appear to have a specific small business set-aside. However, the prime contractor, Marinette Marine Corporation, may engage small businesses for subcontracting opportunities related to component manufacturing, specialized services, or logistics, contributing to the broader small business ecosystem within the defense industrial base.
Oversight & Accountability
The U.S. Coast Guard, as part of the Department of Homeland Security, has established oversight mechanisms for shipbuilding contracts. These typically involve program management reviews, quality assurance inspections, and contract performance monitoring. The firm-fixed-price nature of the award provides a degree of financial accountability, and any significant deviations would likely be subject to review by relevant oversight bodies.
Related Government Programs
- National Security Cutter Program
- Fast Response Cutter Program
- Patrol Boat Procurement
- Maritime Security Vessels
Risk Flags
- Potential for delivery delays
- Quality control in mass production
- Long-term maintenance costs
Tags
defense, department-of-homeland-security, u.s.-coast-guard, boat-building, full-and-open-competition, delivery-order, firm-fixed-price, wisconsin, maritime-security, patrol-boats
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $56.6 million to MARINETTE MARINE CORPORATION. 30 BOATS
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 $56.6 million.
What is the period of performance?
Start: 2009-03-23. End: 2014-06-20.
What is the track record of Marinette Marine Corporation in delivering similar vessels?
Marinette Marine Corporation has a significant history in shipbuilding, including the construction of naval vessels and cutters for the U.S. Coast Guard. They have experience with complex projects and have delivered vessels that meet rigorous military and governmental standards. Their past performance on similar contracts would have been a key factor in the evaluation process for this award. Assessing their historical on-time delivery rates and quality control measures provides insight into their capability to fulfill this specific contract successfully. While specific details on past performance metrics for this exact contract are not provided, their established presence in the defense shipbuilding sector suggests a baseline level of competence.
How does the per-unit cost of these boats compare to other similar government procurements?
The per-unit cost of approximately $1.89 million for these 30 patrol boats is considered competitive within the context of specialized maritime vessel construction for government use. Similar government procurements for patrol or interdiction craft can range significantly based on size, speed, armament, and technological sophistication. For instance, larger, more heavily armed vessels can cost tens of millions of dollars each. Smaller, less complex boats might be in the hundreds of thousands. Given that these are described as 'boats' and the total award is $56.6 million for 30 units, the cost aligns with mid-sized, capable patrol platforms. A detailed comparison would require specific technical specifications of comparable vessels, but the initial assessment suggests the pricing is reasonable for the capabilities likely offered.
What are the primary risks associated with this type of shipbuilding contract?
Shipbuilding contracts, especially for multiple vessels, carry inherent risks. Key risks include potential schedule delays due to complex manufacturing processes, supply chain disruptions for specialized components, labor availability and cost fluctuations, and unforeseen technical challenges during construction or testing. For the government, there's also the risk of performance deficiencies, where the delivered vessels may not meet all specified operational requirements. The firm-fixed-price nature of this contract helps mitigate cost overrun risks for the government, but it places the financial burden of unexpected cost increases on the contractor. Effective project management, robust quality assurance, and clear communication channels are crucial for mitigating these risks.
How effective is the U.S. Coast Guard in utilizing patrol boats for its missions?
Patrol boats are a fundamental asset for the U.S. Coast Guard, enabling a wide range of critical missions including maritime law enforcement, search and rescue, counter-narcotics operations, illegal fishing interdiction, and port security. The effectiveness of these boats is directly tied to their operational readiness, speed, range, and suitability for specific mission environments. Acquiring 30 new patrol boats suggests a strategic effort to enhance the Coast Guard's overall operational capacity and replace aging assets. The success of these new boats will be measured by their contribution to mission accomplishment rates, response times, and their ability to operate reliably in diverse maritime conditions along U.S. coastlines and international waters.
What are the historical spending patterns for patrol boat procurement by the U.S. Coast Guard?
The U.S. Coast Guard has a consistent history of procuring various classes of patrol boats to maintain its operational fleet. Spending patterns fluctuate based on fleet modernization needs, budget allocations, and specific mission requirements. Historically, the Coast Guard has acquired boats ranging from small, high-speed interceptors to larger, more capable cutters. Major procurement programs, like the Sentinel-class Fast Response Cutters (FRCs), have involved significant multi-year investments. This $56.6 million award for 30 boats represents a substantial, but not unprecedented, investment aimed at bolstering their patrol capabilities, reflecting a recurring need for effective maritime domain awareness and enforcement assets.
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: 3
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: $56,614,620
Exercised Options: $56,614,620
Current Obligation: $56,614,620
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSCG2306DARB001
IDV Type: IDC
Timeline
Start Date: 2009-03-23
Current End Date: 2014-06-20
Potential End Date: 2014-06-20 00:00:00
Last Modified: 2021-05-10
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