Coast Guard Offshore Patrol Cutter Design Contract Awarded to Bath Iron Works for $21.4M
Contract Overview
Contract Amount: $21,400,000 ($21.4M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2014-07-01
End Date: 2016-01-14
Contract Duration: 562 days
Daily Burn Rate: $38.1K/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 3 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: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Homeland Security obligated $21.4 million to BATH IRON WORKS CORPORATION for work described as: OPC P&CD CONTRACT 3 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. 2. Bath Iron Works Corporation, a large business, was awarded the contract. 3. The contract type is Fixed Price Incentive, suggesting shared risk between government and contractor. 4. The sector is Ship Building and Repairing, a critical defense industry.
Value Assessment
Rating: fair
The contract value of $21.4 million for preliminary and contract design appears reasonable for a complex vessel like the Offshore Patrol Cutter. Benchmarking against similar large shipbuilding design contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the design phase of this important Coast Guard asset.
Public Impact
This contract is a crucial step in the development of the U.S. Coast Guard's new Offshore Patrol Cutter fleet. The successful design phase will impact the overall cost and timeline for the construction of multiple vessels. The project supports the Coast Guard's mission to secure U.S. borders and maritime interests.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
- The duration of the contract (562 days) is substantial for a design phase.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security asset for the U.S. Coast Guard.
Sector Analysis
The Ship Building and Repairing sector is characterized by large, complex projects with significant lead times and high costs. Government contracts in this sector often involve extensive oversight due to the scale and importance of the assets being procured.
Small Business Impact
The contract was awarded to Bath Iron Works Corporation, a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract is managed by the Department of Homeland Security for the U.S. Coast Guard. Standard oversight mechanisms for major defense procurements would apply, focusing on design milestones and cost control.
Related Government Programs
- Ship Building and Repairing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Contract type (Fixed Price Incentive) carries inherent cost overrun risk.
- Lack of detailed incentive structure information hinders full risk assessment.
- Long contract duration for a design phase warrants monitoring.
- No explicit mention of small business subcontracting goals.
Tags
ship-building-and-repairing, department-of-homeland-security, me, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $21.4 million to BATH IRON WORKS CORPORATION. OPC P&CD CONTRACT 3 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 BATH IRON WORKS 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 $21.4 million.
What is the period of performance?
Start: 2014-07-01. End: 2016-01-14.
What is the estimated total cost for the entire Offshore Patrol Cutter program, and how does this design contract value compare?
The provided data only details the preliminary and contract design phase valued at $21.4 million. Information on the total program cost for the Offshore Patrol Cutter fleet is not included. A comprehensive assessment of value would require comparing this design cost against the projected total acquisition cost and the cost of similar vessel programs.
What are the specific incentive targets and sharing arrangements within the Fixed Price Incentive contract, and what are the potential risks of cost overruns?
The data specifies the contract type as Fixed Price Incentive (FFP) but does not detail the specific incentive targets, cost-sharing ratios, or ceiling prices. These details are critical for assessing the risk of cost overruns. Without them, it's difficult to quantify the potential financial exposure for the government if costs exceed initial estimates.
How will the effectiveness of the preliminary and contract design be measured, and what are the key performance indicators for this phase?
The effectiveness of the design phase is typically measured against adherence to technical specifications, performance requirements, and schedule milestones outlined in the Statement of Work. Key performance indicators would likely include the timely delivery of design documents, successful design reviews, and the incorporation of feedback from the U.S. Coast Guard, ensuring the design meets operational needs.
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: General Dynamics Corp (UEI: 001381284)
Address: 700 WASHINGTON ST, BATH, ME, 04530
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,400,000
Exercised Options: $21,400,000
Current Obligation: $21,400,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-01
Current End Date: 2016-01-14
Potential End Date: 2020-11-06 00:00:00
Last Modified: 2019-07-02
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