SAFE BOATS INTERNATIONAL LLC awarded $18.5M for 23 response boats and support services for Chile's FMS case

Contract Overview

Contract Amount: $18,545,530 ($18.5M)

Contractor: Safe Boats International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-02-08

End Date: 2014-02-07

Contract Duration: 1,460 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMMERCIAL FIRM FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES (FMS) CASE NUMBER CI-P-SAB FOR THE GOVERNMENT OF CHILE FOR THE PROCUREMENT OF 10 EA. DEFENDER CLASS RESPONSE BOATS, 13 EA. ARCH ANGEL CLASS RESPONSE BOATS, DOCUMENTATION, TRAILERS, NON-ROLLING CHOCKS, SPARE PARTS, TRAINING AND CRANE SERVICES.

Place of Performance

Location: PORT ORCHARD, KITSAP County, WASHINGTON, 98366

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.5 million to SAFE BOATS INTERNATIONAL LLC for work described as: COMMERCIAL FIRM FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES (FMS) CASE NUMBER CI-P-SAB FOR THE GOVERNMENT OF CHILE FOR THE PROCUREMENT OF 10 EA. DEFENDER CLASS RESPONSE BOATS, 13 EA. ARCH ANGEL CLASS RESPONSE BOATS, DOCUMENTATION, TRAILERS, NON-ROLLING CHOCKS, SPARE… Key points: 1. Contract value of $18.5M for specialized maritime assets indicates significant investment in foreign military sales. 2. The procurement includes a mix of Defender and Arch Angel class response boats, suggesting diverse operational needs. 3. Support services such as documentation, trailers, spare parts, training, and crane services are bundled, indicating a comprehensive package. 4. The contract duration of 4 years (1460 days) allows for phased delivery and integration of the vessels and services. 5. The fixed-price contract type aims to control costs for the government, though potential for cost overruns exists with complex procurements. 6. This contract falls under Foreign Military Sales, highlighting the U.S. role in supporting allied defense capabilities.

Value Assessment

Rating: good

The contract value of $18.5 million for 23 specialized response boats and associated services appears reasonable given the nature of the equipment and comprehensive support package. Benchmarking against similar FMS procurements for naval vessels of this class would provide a more precise value assessment. The firm fixed-price structure suggests an effort to contain costs, but the inclusion of training and crane services could introduce variability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for sole-source procurement is not provided in the data, which could be due to proprietary technology, unique capabilities of the contractor, or specific FMS requirements. The lack of competition means that pricing and value were not tested against market alternatives.

Taxpayer Impact: Taxpayers are not benefiting from competitive pricing that could have potentially lowered the overall cost of this procurement.

Public Impact

The primary beneficiaries are the Chilean government and its maritime forces, who will receive advanced response boats for operational use. The services delivered include the procurement of 23 specialized response boats, documentation, trailers, spare parts, training, and crane services. The geographic impact is primarily in Chile, enhancing its maritime security and response capabilities. Workforce implications may include specialized training for Chilean personnel and potential support roles for U.S. personnel during training and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit opportunities for other capable manufacturers to enter the market or offer competitive solutions.
The complexity of bundled services (training, crane services) can sometimes lead to scope creep or unforeseen cost increases if not managed tightly.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The procurement of a comprehensive package including boats, parts, and training suggests a focus on operational readiness for the end-user.
The contract supports U.S. foreign policy objectives by equipping an allied nation with critical maritime assets.

Sector Analysis

This contract falls within the broader defense and security sector, specifically focusing on naval vessel construction and support. The market for specialized patrol and response boats is competitive, with several domestic and international manufacturers capable of producing such assets. However, FMS procurements often have specific requirements that may lead to sole-source awards or limited competition. Benchmarking would involve comparing the cost per vessel and support package to similar sales to other allied nations or domestic procurements by agencies like the U.S. Coast Guard.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. There is no indication of small business set-asides or subcontracting requirements. This suggests that the prime contractor, SAFE BOATS INTERNATIONAL LLC, likely handled the majority of the work internally or with larger partners, potentially limiting opportunities for small businesses in this specific transaction.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard, acting as the contracting activity for the Department of Homeland Security, and potentially the Defense Contract Management Agency (DCMA) for contract administration. Transparency is limited due to the sole-source nature and FMS context. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales Program
U.S. Coast Guard Boat Procurement
Naval Vessel Construction
Maritime Security Equipment

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns in FMS cases
Complexity of bundled services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.5 million to SAFE BOATS INTERNATIONAL LLC. COMMERCIAL FIRM FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES (FMS) CASE NUMBER CI-P-SAB FOR THE GOVERNMENT OF CHILE FOR THE PROCUREMENT OF 10 EA. DEFENDER CLASS RESPONSE BOATS, 13 EA. ARCH ANGEL CLASS RESPONSE BOATS, DOCUMENTATION, TRAILERS, NON-ROLLING CHOCKS, SPARE PARTS, TRAINING AND CRANE SERVICES.

Who is the contractor on this award?

The obligated recipient is SAFE BOATS INTERNATIONAL LLC.

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 $18.5 million.

What is the period of performance?

Start: 2010-02-08. End: 2014-02-07.

What is the track record of SAFE BOATS INTERNATIONAL LLC in delivering similar response boats under government contracts?

SAFE BOATS INTERNATIONAL LLC has a history of producing specialized patrol and response boats for various government agencies, including the U.S. Coast Guard, U.S. Navy, and other federal and international clients. Their product lines, such as the Defender and Arch Angel classes, are designed for demanding maritime operations. While specific performance metrics for past contracts are not detailed here, the company's continued awards suggest a satisfactory track record in terms of quality and delivery for similar vessel types. Further analysis would require examining past contract performance reports and any documented issues or commendations related to their previous FMS or domestic procurements.

How does the per-unit cost of these response boats compare to similar vessels procured by the U.S. government or other FMS cases?

The total contract value is $18,545,530.42 for 23 boats (10 Defender Class, 13 Arch Angel Class), plus support services. This averages to approximately $806,327 per boat, excluding the bundled support services. Without detailed breakdowns of the support package costs (documentation, trailers, spares, training, crane services), a precise per-unit vessel cost is difficult to ascertain. However, specialized, high-performance response boats can range significantly in price depending on size, features, and equipment. Comparing this average to similar U.S. Coast Guard or Navy procurements for vessels of comparable size and capability, and factoring in the FMS context which can sometimes include additional administrative costs or specific modifications, would be necessary for a robust benchmark. The lack of competition makes direct price comparison challenging.

What are the primary risks associated with this sole-source FMS contract?

The primary risks associated with this sole-source FMS contract include: 1. **Cost Overruns:** Without competitive bidding, there's a higher risk that the negotiated price may not reflect the best possible value, potentially leading to costs exceeding initial estimates if scope or requirements change. 2. **Performance Issues:** Relying on a single source may reduce the incentive for the contractor to ensure exceptional performance, although contract terms and oversight aim to mitigate this. 3. **Limited Innovation:** Sole-source awards can stifle innovation by not exposing the government to alternative technologies or solutions that other competitors might offer. 4. **Dependency:** The FMS program creates a dependency on the U.S. for specific equipment and support, which can have geopolitical implications. 5. **Contract Administration Burden:** Ensuring the contractor meets all FMS-specific requirements and quality standards requires diligent oversight.

How effective is the firm fixed-price (FFP) contract type in managing costs for this specific procurement?

The Firm Fixed-Price (FFP) contract type is generally effective in managing costs because it shifts the risk of cost overruns to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. For this procurement of response boats and support services, FFP provides the Chilean government (and by extension, the U.S. taxpayer funding the FMS case) with a high degree of cost certainty. However, the effectiveness relies heavily on a well-defined scope of work. If the requirements are ambiguous or subject to change, the contractor may seek change orders, which could increase the total cost, or deliver a product that meets the minimum specified requirements rather than exceeding them.

What is the historical spending pattern for similar maritime patrol or response boat procurements under the FMS program?

Historical spending patterns for similar maritime patrol or response boat procurements under the FMS program show significant variability, influenced by factors such as vessel size, complexity, quantity, technology integration, and the specific needs of the recipient nation. Contracts can range from a few million dollars for smaller, simpler vessels to tens or hundreds of millions for larger, more sophisticated platforms like frigates or offshore patrol vessels. Procurements often include extensive training, spare parts, and logistical support packages, which can substantially increase the total contract value. Analyzing past FMS cases involving naval craft sales to South American nations or similar allies could reveal trends in pricing, contract types (FFP being common), and the typical scope of associated support services. This specific $18.5M contract for 23 response boats appears to be within the mid-range for such specialized maritime asset sales.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8800 BARNEY WHITE RD, PORT ORCHARD, WA, 98367

Business Categories: Category Business, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,545,530

Exercised Options: $18,545,530

Current Obligation: $18,545,530

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline