DHS Awards $22.8M Contract to Safe Boats International for Foreign Military Sales of Patrol Boats

Contract Overview

Contract Amount: $22,872,849 ($22.9M)

Contractor: Safe Boats International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-24

End Date: 2015-11-22

Contract Duration: 789 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMBINED FOREIGN MILITARY SALES PURCHASE WITH SAFE BOATS INTERNATIONAL (SBI) FOR THE COUNTRIES OF COSTA RICA, TUNISIA, ANTIGUA AND BARBUDA, DOMINICA, GRENADA, SAINT KITTS AND NEVIS, SAINT LUCIA, SAINT VINCENT AND THE GRENADINES, UZBEKISTAN, LIBERIA, CHILE, AND THE IVORY COAST, AS WELL AS THE REGIONAL SECURITY SYSTEM IN THE EAST CARIBBEAN.

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98312

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.9 million to SAFE BOATS INTERNATIONAL LLC for work described as: COMBINED FOREIGN MILITARY SALES PURCHASE WITH SAFE BOATS INTERNATIONAL (SBI) FOR THE COUNTRIES OF COSTA RICA, TUNISIA, ANTIGUA AND BARBUDA, DOMINICA, GRENADA, SAINT KITTS AND NEVIS, SAINT LUCIA, SAINT VINCENT AND THE GRENADINES, UZBEKISTAN, LIBERIA, CHILE, AND THE IVORY COAST, AS… Key points: 1. This contract supports multiple countries and a regional security system, indicating broad international cooperation. 2. The sole-source nature of the award warrants scrutiny regarding price discovery and potential competition. 3. A significant portion of the contract value is allocated to boat building, a specialized sector. 4. The contract duration of 789 days suggests a substantial and complex procurement.

Value Assessment

Rating: questionable

The contract was awarded on a firm fixed-price basis. Without a competitive bidding process, it is difficult to assess if the $22.8 million price represents fair market value compared to similar patrol boat procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, which limits the government's ability to secure the best possible price through market forces. This approach may be justified by specific program requirements or existing relationships, but it bypasses standard competitive procedures.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best value for the funds expended on these patrol boats.

Public Impact

Enhances maritime security capabilities for several allied nations and a regional security initiative. Supports U.S. foreign policy objectives by providing essential security assets to partner countries. Facilitates interoperability and strengthens alliances through shared defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing without competitive benchmarking

Positive Signals

Supports multiple international partners
Addresses critical maritime security needs
Firm fixed-price contract provides cost certainty

Sector Analysis

The procurement falls within the defense and security sector, specifically focusing on maritime patrol vessels. Spending benchmarks for similar specialized boat building contracts are not readily available, making direct comparison difficult.

Small Business Impact

Information regarding small business participation in this contract is not available. The prime contractor, Safe Boats International LLC, is likely a large business, and the extent of subcontracting to small businesses is not specified.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (DHS) via the U.S. Coast Guard, indicating established oversight mechanisms. However, the sole-source nature necessitates careful review to ensure accountability and value.

Related Government Programs

Boat Building
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source award limits competitive pricing.
Lack of transparency in justification for non-competition.
Potential for inflated costs due to absence of market pressure.
Limited data on small business subcontracting.
Difficulty in benchmarking price without competitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.9 million to SAFE BOATS INTERNATIONAL LLC. COMBINED FOREIGN MILITARY SALES PURCHASE WITH SAFE BOATS INTERNATIONAL (SBI) FOR THE COUNTRIES OF COSTA RICA, TUNISIA, ANTIGUA AND BARBUDA, DOMINICA, GRENADA, SAINT KITTS AND NEVIS, SAINT LUCIA, SAINT VINCENT AND THE GRENADINES, UZBEKISTAN, LIBERIA, CHILE, AND THE IVORY COAST, AS WELL AS THE REGIONAL SECURITY SYSTEM IN THE EAST CARIBBEAN.

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 $22.9 million.

What is the period of performance?

Start: 2013-09-24. End: 2015-11-22.

What specific justifications were provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source justification was applied. Typically, such justifications are based on factors like unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's unclear if alternative competitive strategies were explored or why they were deemed unsuitable for this specific procurement.

How does the per-unit cost of these patrol boats compare to similar vessels procured competitively by the U.S. or allied nations?

A direct per-unit cost benchmark is not available in the provided data. Given the sole-source nature of this $22.8 million contract for an unspecified number of boats, a comparative analysis against competitively procured, similar vessels is crucial to assess value for money. Without this, it's difficult to determine if the price paid was optimal.

What is the long-term effectiveness and operational impact of these patrol boats for the recipient countries and the regional security system?

The effectiveness and operational impact are contingent on factors beyond the contract itself, such as training, maintenance, and the specific mission requirements of each recipient. While the contract facilitates the acquisition of these assets, their ultimate success in enhancing maritime security and regional stability will depend on their deployment and utilization by the partner nations and the RSS.

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: HSCG23-13-R-PGV001

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: $36,347,260

Exercised Options: $22,872,849

Current Obligation: $22,872,849

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline