SAFE BOATS INTERNATIONAL LLC Awarded $19.9M for 12 Archangel Class Boats and Support for Chile

Contract Overview

Contract Amount: $19,949,917 ($19.9M)

Contractor: Safe Boats International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-11-23

End Date: 2014-08-31

Contract Duration: 1,012 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS IS A COMMERCIAL FIRM-FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES CASE NO. CI-P-SAB WITH THE GOVERNMENT OF CHILE FOR THE ACQUISITION, MANUFACTURE, AND DELIVERY OF TWELVE (12) 44' ARCH ANGEL CLASS BOATS (TEN (10) WITH SELF-RIGHTING CONFIGURATION AND TWO (2) WITH STANDARD CONFIGURATION) WITH TWO (2) TRAILERS, TEN (10) NON-ROLLING CHOCKS, ONE (1) TRAINING PACKAGE, ONE 25' DEFENDER CLASS BOAT WITH TRAILER, ASSCOCIATED PACKAGING (INCLUDING SHRINK WRAPPING HULLS), AND CRANE SERVICE.

Place of Performance

Location: PORT ORCHARD, KITSAP County, WASHINGTON, 98367

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.9 million to SAFE BOATS INTERNATIONAL LLC for work described as: THIS IS A COMMERCIAL FIRM-FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES CASE NO. CI-P-SAB WITH THE GOVERNMENT OF CHILE FOR THE ACQUISITION, MANUFACTURE, AND DELIVERY OF TWELVE (12) 44' ARCH ANGEL CLASS BOATS (TEN (10) WITH SELF-RIGHTING CONFIGURATION AND TWO (2) WITH … Key points: 1. Contract focuses on specialized maritime assets for foreign military sales, indicating a niche market. 2. The award includes a mix of standard and self-righting configurations, suggesting varied operational requirements. 3. Delivery of training and additional vessel (Defender Class) points to a comprehensive support package. 4. The firm-fixed-price structure aims to control costs for the government. 5. The contract duration of approximately 3 years suggests a moderate complexity and production timeline. 6. This contract supports U.S. foreign military sales objectives by providing essential maritime security capabilities to an allied nation.

Value Assessment

Rating: good

The total award of $19.9 million for twelve 44' Archangel Class boats, along with a 25' Defender Class boat, trailers, chocks, and training, appears reasonable given the specialized nature of the vessels. Benchmarking against similar custom-built patrol boats is challenging due to unique configurations and foreign military sales (FMS) context. However, the inclusion of extensive support services suggests a comprehensive package that justifies the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, being awarded under a sole-source basis. The data indicates it is 'NOT AVAILABLE FOR COMPETITION'. This suggests that SAFE BOATS INTERNATIONAL LLC may be the only or primary provider of these specific Archangel Class boats, or that the circumstances of the foreign military sale necessitated a direct award.

Taxpayer Impact: Sole-source awards can limit opportunities for price discovery through competition, potentially leading to higher costs for taxpayers if not carefully managed through negotiation and oversight.

Public Impact

The primary beneficiaries are the Chilean Navy, which will receive advanced maritime patrol and security capabilities. Services delivered include the manufacture and delivery of specialized patrol boats, training, and associated equipment. The geographic impact is primarily focused on Chile's maritime domain, enhancing its coastal and border security. Workforce implications are within the contractor's facilities, supporting manufacturing and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a fully competed contract.
Reliance on a single source for specialized vessels could pose supply chain risks.
Foreign military sales contracts can be complex to manage and may have unique oversight requirements.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Comprehensive package including training and support enhances operational readiness for the end-user.
Specialized nature of the boats addresses specific maritime security needs.

Sector Analysis

This contract falls within the broader defense and maritime security sector, specifically boat building and naval systems. The market for highly specialized patrol boats like the Archangel Class is relatively niche, often dominated by a few key manufacturers capable of meeting stringent military specifications. Spending in this area is driven by national security needs, force modernization, and international cooperation through programs like Foreign Military Sales.

Small Business Impact

There is no indication of small business set-asides or subcontracting plans within the provided data. As this appears to be a sole-source award to a specific manufacturer, the focus is likely on the prime contractor's capabilities rather than broader small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard, acting as the contracting agency, and potentially involving the Defense Contract Management Agency (DCMA) for production and delivery monitoring. Transparency is facilitated through contract awards databases, but specific details on internal oversight mechanisms are not provided. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Sole-source award
Foreign Military Sales complexity
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.9 million to SAFE BOATS INTERNATIONAL LLC. THIS IS A COMMERCIAL FIRM-FIXED PRICE CONTRACT IN SUPPORT OF FOREIGN MILITARY SALES CASE NO. CI-P-SAB WITH THE GOVERNMENT OF CHILE FOR THE ACQUISITION, MANUFACTURE, AND DELIVERY OF TWELVE (12) 44' ARCH ANGEL CLASS BOATS (TEN (10) WITH SELF-RIGHTING CONFIGURATION AND TWO (2) WITH STANDARD CONFIGURATION) WITH TWO (2) TRAILERS, TEN (10) NON-ROLLING CHOCKS, ONE (1) TRAINING PACKAGE, ONE 25' DEFENDER CLASS BOAT WITH TRAILER, ASSCOCIATED PACKAGING (INCLUDING SHRINK WRAPPING HULLS), AND CRANE SERVICE.

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 $19.9 million.

What is the period of performance?

Start: 2011-11-23. End: 2014-08-31.

What is the track record of SAFE BOATS INTERNATIONAL LLC in delivering similar specialized vessels for foreign military sales?

SAFE BOATS INTERNATIONAL LLC has a history of producing specialized aluminum patrol boats for various government agencies, including the U.S. Coast Guard, Navy, and other international partners. Their expertise lies in designing and manufacturing high-performance, durable vessels for demanding maritime environments. While specific details on their foreign military sales track record for the Archangel class are not fully elaborated in this data, their general capability in producing similar vessels for military and law enforcement applications suggests a strong foundation for fulfilling this contract. Further investigation into past FMS cases or similar international contracts would provide a more granular view of their performance in this specific context.

How does the per-unit cost of the Archangel Class boats compare to similar vessels in the market?

A direct per-unit cost comparison for the Archangel Class boats is difficult without more detailed specifications and market data for comparable vessels. The $19.9 million award for twelve 44' Archangel Class boats, plus a 25' Defender Class boat and support, averages to approximately $1.66 million per 44' boat if solely considering the main vessels. However, this figure is an oversimplification as it includes trailers, chocks, training, and the additional Defender boat. Specialized military-grade patrol boats with advanced capabilities, self-righting features, and robust construction can command significantly higher prices than standard commercial vessels. Benchmarking would require identifying contracts for similarly sized, equipped, and configured patrol boats procured by other nations or U.S. agencies, which is not readily available in this dataset.

What are the primary risks associated with this sole-source contract, and how are they mitigated?

The primary risk of a sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Mitigation strategies would involve rigorous negotiation by the contracting agency (U.S. Coast Guard) to ensure fair and reasonable pricing, potentially through cost analysis and benchmarking against available market data or historical pricing. Another risk is the contractor's ability to meet delivery schedules and quality standards. This is typically mitigated through contract clauses, performance monitoring, and potentially penalties for non-compliance. For foreign military sales, there's also the risk of geopolitical factors or end-user requirements changing, which would necessitate close coordination between the U.S. government, the contractor, and the government of Chile.

What is the expected program effectiveness and impact on Chile's maritime security capabilities?

The program is expected to significantly enhance Chile's maritime security capabilities by providing advanced patrol boats. The Archangel Class boats are designed for high-speed interdiction, surveillance, and patrol missions in various sea conditions. The inclusion of self-righting configurations enhances safety and operational continuity in challenging weather. This acquisition will likely improve Chile's ability to combat illegal fishing, smuggling, piracy, and other maritime threats, thereby strengthening its border security and national defense. The training package ensures that Chilean personnel can effectively operate and maintain the vessels, maximizing their operational lifespan and effectiveness.

How does this contract's value and scope compare to historical spending on similar maritime assets by the U.S. Coast Guard or other agencies?

Comparing this $19.9 million contract for foreign military sales to historical U.S. Coast Guard (USCG) spending requires context. The USCG procures a wide range of vessels, from small response boats to large cutters. Contracts for specialized, medium-sized patrol boats like the Archangel Class, especially when configured for military applications and including extensive support, can range from several hundred thousand to several million dollars per vessel. For instance, the USCG's Sentinel-class Fast Response Cutters (over 150' long) cost significantly more per unit. This contract for twelve 44' boats appears to be a mid-tier investment in specialized maritime assets. Historical data on similar FMS cases or procurements of comparable patrol boats by other U.S. agencies would provide a more precise benchmark, but the overall value suggests a substantial investment in enhancing a partner nation's maritime capabilities.

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

Solicitation ID: HSCG23-11-R-PCA003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8800 BARNEY WHITE RD, BREMERTON, WA, 98312

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

Financial Breakdown

Contract Ceiling: $19,949,917

Exercised Options: $19,949,917

Current Obligation: $19,949,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline