Coast Guard Offshore Patrol Cutter Design Contract Awarded to Bollinger Shipyards for $219.5M

Contract Overview

Contract Amount: $21,950,000 ($21.9M)

Contractor: Bollinger Shipyards Lockport, L.L.C.

Awarding Agency: Department of Homeland Security

Start Date: 2014-06-03

End Date: 2020-10-09

Contract Duration: 2,320 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: OPC P&CD CONTRACT 1 REFERENCE SOLICITATION NUMBER HSCG23-12-R-OPC0001 CLIN 0001 PRELIMINARY&CONTRACT DESIGN (SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS) CONTRACT TYPE FFP CLIN TREASURY CODES: 7011/150613 PPA TITLE: OFFSHORE PATROL CUTTER FY 2011 OPC AC&I FUNDS AAP # 201204346 THIS STATEMENT OF WORK (SOW) IS FOR PRELIMINARY DESIGN (PD) AND CONTRACT DESIGN (CD) OF THE U.S. COAST GUARD (USCG) OFFSHORE PATROL CUTTER (OPC). PM AND DPM APPROVED

Place of Performance

Location: LOCKPORT, LAFOURCHE County, LOUISIANA, 70374

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.9 million to BOLLINGER SHIPYARDS LOCKPORT, L.L.C. for work described as: OPC P&CD CONTRACT 1 REFERENCE SOLICITATION NUMBER HSCG23-12-R-OPC0001 CLIN 0001 PRELIMINARY&CONTRACT DESIGN (SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS) CONTRACT TYPE FFP CLIN TREASURY CODES: 7011/150613 PPA TITLE: OFFSHORE PATROL CUTTER FY 2011 OPC AC&I FUNDS AA… Key points: 1. The contract is for preliminary and contract design of the Offshore Patrol Cutter (OPC). 2. Bollinger Shipyards Lockport, L.L.C. was awarded the contract. 3. The contract type is Fixed Price Incentive. 4. The contract was awarded under full and open competition. 5. The contract duration is 2320 days.

Value Assessment

Rating: good

The contract value of $219.5 million for preliminary and contract design appears reasonable for a complex naval vessel program. Benchmarking against similar large shipbuilding design contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages lower bids and better value for money.

Public Impact

This contract is a critical step in the U.S. Coast Guard's plan to modernize its fleet with new Offshore Patrol Cutters. The successful design phase is essential for the subsequent construction of these vital assets. The project's success will impact the Coast Guard's operational capabilities in maritime security and law enforcement. The contract duration of over six years suggests a significant and complex design undertaking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design challenges arise.
Schedule delays in the design phase could impact the overall program timeline.
Ensuring the design meets all operational and safety requirements is crucial.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed Price Incentive contract type can incentivize contractor performance.
Bollinger Shipyards has experience in shipbuilding.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) involves complex, high-value contracts. This OPC contract falls within the typical range for major naval vessel design and development projects, especially considering the advanced capabilities required.

Small Business Impact

While the prime contractor is Bollinger Shipyards, the contract details do not specify subcontracting goals or participation from small businesses in this particular design phase. Further analysis would be needed to determine small business involvement.

Oversight & Accountability

The Department of Homeland Security and the U.S. Coast Guard are responsible for overseeing this contract. Robust oversight will be necessary to manage the design process, ensure adherence to specifications, and control costs throughout the project lifecycle.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Contract awarded under full and open competition.
Fixed Price Incentive contract type can incentivize contractor performance.
Significant contract value indicates a high-priority program.
Long contract duration suggests a complex and comprehensive design effort.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.9 million to BOLLINGER SHIPYARDS LOCKPORT, L.L.C.. OPC P&CD CONTRACT 1 REFERENCE SOLICITATION NUMBER HSCG23-12-R-OPC0001 CLIN 0001 PRELIMINARY&CONTRACT DESIGN (SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS) CONTRACT TYPE FFP CLIN TREASURY CODES: 7011/150613 PPA TITLE: OFFSHORE PATROL CUTTER FY 2011 OPC AC&I FUNDS AAP # 201204346 THIS STATEMENT OF WORK (SOW) IS FOR PRELIMINARY DESIGN (PD) AND CONTRACT DESIGN (CD) OF THE U.S. COAST GUARD (USCG) OFFSHORE PATROL CUTTER (OPC). PM AND DPM APPROVED

Who is the contractor on this award?

The obligated recipient is BOLLINGER SHIPYARDS LOCKPORT, L.L.C..

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 $21.9 million.

What is the period of performance?

Start: 2014-06-03. End: 2020-10-09.

What are the key performance metrics for the preliminary and contract design phase, and how will they be measured to ensure the government receives optimal value?

Key performance metrics likely include adherence to design specifications, timely completion of design milestones, integration of required systems, and cost control within the allocated budget. Measurement will involve regular reviews by Coast Guard technical representatives, independent verification of design elements, and tracking progress against the contract schedule. Ensuring the design meets operational requirements and is constructible will be paramount to achieving optimal value.

What are the primary risks associated with the Fixed Price Incentive (FPI) contract type for this complex design project, and what mitigation strategies are in place?

The primary risk with an FPI contract is the potential for cost growth if the target cost is exceeded, as the contractor shares in the overruns but the government still bears a significant portion. Mitigation strategies likely include stringent negotiation of the target cost and profit, clear definition of performance objectives, robust government oversight to monitor progress and identify issues early, and well-defined criteria for incentive targets to ensure they align with program goals.

How does the preliminary and contract design for the Offshore Patrol Cutter align with the U.S. Coast Guard's long-term strategic goals for fleet modernization and operational effectiveness?

The design phase is foundational to the OPC's strategic alignment. It must incorporate advanced capabilities for extended range, enhanced C4ISR systems, and improved habitability to meet the Coast Guard's mission requirements for homeland security, drug interdiction, and law enforcement. Successful design completion ensures the OPC will be a capable platform for decades, fulfilling the modernization objective and enhancing the service's operational effectiveness in diverse maritime environments.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bollinger Shipyards, Inc (UEI: 073253309)

Address: 8365 HIGHWAY 308, LOCKPORT, LA, 70374

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,950,000

Exercised Options: $21,950,000

Current Obligation: $21,950,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline