Coast Guard awards $215M for patrol boat construction and program management to Marinette Marine
Contract Overview
Contract Amount: $21,501,378 ($21.5M)
Contractor: Marinette Marine Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2011-04-07
End Date: 2013-02-28
Contract Duration: 693 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CLIN 5003F HULLS 106-115 AND 4 MONTHS OF PROGRAM MANAGEMENT
Place of Performance
Location: MARINETTE, MARINETTE County, WISCONSIN, 54143
Plain-Language Summary
Department of Homeland Security obligated $21.5 million to MARINETTE MARINE CORPORATION for work described as: CLIN 5003F HULLS 106-115 AND 4 MONTHS OF PROGRAM MANAGEMENT Key points: 1. Contract awarded for 10 patrol boat hulls and program management services. 2. The contract is a firm-fixed-price delivery order. 3. The contract duration is 693 days. 4. The awardee has a significant history in shipbuilding. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code is 336612, indicating boat building.
Value Assessment
Rating: good
The contract value of $215 million for 10 patrol boat hulls and program management appears reasonable given the complexity of shipbuilding. Benchmarking against similar naval construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for the government if costs are well-managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The level of competition is not explicitly stated, but the process itself generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
The U.S. Coast Guard will benefit from the delivery of new patrol boat hulls. These boats are essential for maritime security, law enforcement, and search and rescue operations. The contract supports the shipbuilding industry, particularly in Wisconsin. It likely sustains jobs within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in shipbuilding projects.
- Cost overruns are a risk in complex manufacturing contracts.
- Ensuring quality and adherence to specifications for maritime vessels.
Positive Signals
- Firm-fixed-price contract limits cost escalation for the government.
- Awardee has experience in large-scale shipbuilding.
- Full and open competition suggests a competitive bidding process.
Sector Analysis
This contract falls within the broader defense industrial base, specifically the shipbuilding sector. The market for naval and coast guard vessels is characterized by high barriers to entry due to specialized expertise, capital investment, and regulatory requirements. Comparable spending benchmarks would involve looking at other large vessel construction contracts awarded by government agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is likely a large entity, there may be opportunities for small businesses to participate as subcontractors in areas such as component manufacturing, specialized services, or logistics.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified assets. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.
Related Government Programs
- National Security Contracts
- Naval Vessel Construction
- Coast Guard Fleet Modernization
- Maritime Security Contracts
Risk Flags
- Potential for shipbuilding delays
- Complexity of integrating program management with hull construction
Tags
defense, coast-guard, wisconsin, boat-building, full-and-open-competition, firm-fixed-price, delivery-order, large-contract, maritime-security, homeland-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $21.5 million to MARINETTE MARINE CORPORATION. CLIN 5003F HULLS 106-115 AND 4 MONTHS OF PROGRAM MANAGEMENT
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 $21.5 million.
What is the period of performance?
Start: 2011-04-07. End: 2013-02-28.
What is the historical performance of Marinette Marine Corporation on similar government contracts?
Marinette Marine Corporation has a significant history of constructing vessels for the U.S. military and Coast Guard. They were the builder of the Littoral Combat Ship (LCS) for the Navy and have undertaken various other shipbuilding projects. Their track record includes both successes and challenges, typical of large, complex defense manufacturing programs. Analyzing past performance on similar hull construction and program management contracts would be crucial for a comprehensive risk assessment. Specific details on past performance metrics, such as on-time delivery rates and budget adherence, would be needed for a definitive evaluation.
How does the per-unit cost of these patrol boat hulls compare to similar vessels?
Without specific details on the vessel class, size, and capabilities, a precise per-unit cost comparison is difficult. However, the total award of $215 million for 10 hulls suggests an average of $21.5 million per hull. This figure needs to be contextualized by the complexity, technology, and mission requirements of these specific patrol boats. For instance, advanced sensor suites, propulsion systems, and combat capabilities would significantly increase per-unit costs. Benchmarking against publicly available data for similar patrol or light naval vessels procured by other nations or agencies could provide a comparative perspective, but direct comparisons are often limited by proprietary information and differing specifications.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential schedule delays inherent in complex shipbuilding, cost overruns (though mitigated by the firm-fixed-price structure), and ensuring the final vessels meet stringent quality and performance specifications. Mitigation strategies likely involve robust project management by Marinette Marine, detailed oversight from the U.S. Coast Guard, adherence to strict quality assurance protocols, and phased delivery schedules. The firm-fixed-price nature incentivizes the contractor to manage costs effectively. The Coast Guard's role in monitoring progress and enforcing contract terms is critical for risk mitigation.
What is the expected program effectiveness and impact of these new patrol boats?
The new patrol boats are expected to enhance the U.S. Coast Guard's operational capabilities in areas such as maritime domain awareness, drug and migrant interdiction, fisheries enforcement, and search and rescue. Increased fleet capacity and potentially improved vessel performance will allow the Coast Guard to maintain a more robust presence in critical waterways and coastal regions. This improved effectiveness directly contributes to national security, economic security (through safe maritime commerce), and public safety. The specific impact will depend on the operational deployment strategy and the unique capabilities of the new hulls.
How does this spending compare to historical Coast Guard boat building expenditures?
This $215 million award represents a significant investment in the Coast Guard's fleet modernization. To compare it historically, one would need to analyze past Coast Guard shipbuilding budgets and individual contract awards for similar vessel classes over several fiscal years. For example, comparing this to the cost of previous generations of patrol boats or cutters, or to other major shipbuilding programs like the Polar Security Cutter, would provide context. Without access to detailed historical spending data specifically for patrol boat construction, it's challenging to definitively state if this represents an increase or decrease relative to historical trends, but it is a substantial single award.
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
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: $21,501,378
Exercised Options: $21,501,378
Current Obligation: $21,501,378
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSCG2306DARB001
IDV Type: IDC
Timeline
Start Date: 2011-04-07
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2021-05-11
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