DHS awards $23.8M for 6 Coast Guard Response Boats Medium for Bahrain
Contract Overview
Contract Amount: $23,800,651 ($23.8M)
Contractor: Marinette Marine Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2017-06-15
End Date: 2023-03-31
Contract Duration: 2,115 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS ISSUED FOR THE ACQUISITION OF SIX (6) RESPONSE BOAT MEDIUM (RB-M) BOATS FOR THE BAHRAIN COAST GUARD (BCG) UNDER FOREIGN MILITARY SALES (FMS) CASE: U7-P-LAA.
Place of Performance
Location: MARINETTE, MARINETTE County, WISCONSIN, 54143
Plain-Language Summary
Department of Homeland Security obligated $23.8 million to MARINETTE MARINE CORPORATION for work described as: THIS DELIVERY ORDER IS ISSUED FOR THE ACQUISITION OF SIX (6) RESPONSE BOAT MEDIUM (RB-M) BOATS FOR THE BAHRAIN COAST GUARD (BCG) UNDER FOREIGN MILITARY SALES (FMS) CASE: U7-P-LAA. Key points: 1. Value for money appears reasonable given the specialized nature of the vessels and the foreign military sales context. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over five years indicates a long-term commitment for delivery and potential support. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The delivery order is part of a larger Foreign Military Sales case, indicating international cooperation. 6. The boats are intended for the Bahrain Coast Guard, highlighting a specific end-user and mission.
Value Assessment
Rating: good
The contract value of $23.8 million for six Response Boat Medium (RB-M) vessels, averaging approximately $3.97 million per boat, seems within a reasonable range for specialized maritime assets. While direct public comparisons are limited due to the FMS nature, the price reflects the advanced capabilities and construction required for such vessels. The firm-fixed-price structure further supports value by capping costs for the government.
Cost Per Unit: Approximately $3.97 million per boat.
Competition Analysis
Competition Level: full-and-open
This delivery order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the competitive nature of the award process is expected to drive price discovery and ensure fair market value.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages multiple bids, and generally leads to more competitive pricing compared to sole-source or limited competition scenarios.
Public Impact
The primary beneficiaries are the Bahrain Coast Guard, which will receive enhanced maritime security and interdiction capabilities. The services delivered include the construction and delivery of six specialized Response Boat Medium vessels. The geographic impact is focused on the maritime domain of Bahrain, enhancing its coastal defense and law enforcement. Workforce implications include skilled labor in boat building and manufacturing within the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if additional requirements are added beyond the initial six boats.
- Delivery timelines could be impacted by global supply chain disruptions for specialized components.
- Ensuring adherence to specific Bahraini operational requirements throughout the build process.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust bidding process.
- The U.S. Coast Guard's oversight of the acquisition process.
- Delivery of critical maritime security assets to a partner nation.
Sector Analysis
This contract falls within the broader defense and maritime security sector, specifically focusing on specialized vessel construction. The market for such custom-built, high-performance patrol boats is relatively niche, often involving a limited number of experienced shipbuilders capable of meeting stringent military or coast guard specifications. Spending in this area is driven by national security needs, international partnerships, and the requirement for advanced maritime patrol capabilities.
Small Business Impact
Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. As this is a specialized vessel construction contract likely awarded to a larger prime contractor (Marinette Marine Corporation), the extent of small business involvement would typically be determined through subcontracting opportunities. Further analysis would be needed to ascertain the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is primarily managed by the U.S. Coast Guard, acting on behalf of the Department of Homeland Security and the Foreign Military Sales program. Accountability measures are embedded in the firm-fixed-price contract terms, delivery schedules, and quality assurance protocols. Transparency is facilitated through the FMS process, which involves inter-agency coordination and reporting, though specific details of ongoing oversight are not publicly detailed.
Related Government Programs
- Foreign Military Sales (FMS)
- U.S. Coast Guard Acquisition Programs
- Maritime Security Vessels
- Naval Construction Contracts
Risk Flags
- Foreign Military Sales (FMS) complexity
- Potential for delivery delays
- Specialized component sourcing
Tags
defense, maritime-security, boat-building, foreign-military-sales, delivery-order, firm-fixed-price, full-and-open-competition, department-of-homeland-security, u-s-coast-guard, wisconsin, medium-size-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $23.8 million to MARINETTE MARINE CORPORATION. THIS DELIVERY ORDER IS ISSUED FOR THE ACQUISITION OF SIX (6) RESPONSE BOAT MEDIUM (RB-M) BOATS FOR THE BAHRAIN COAST GUARD (BCG) UNDER FOREIGN MILITARY SALES (FMS) CASE: U7-P-LAA.
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 $23.8 million.
What is the period of performance?
Start: 2017-06-15. End: 2023-03-31.
What is the track record of Marinette Marine Corporation in delivering similar maritime vessels?
Marinette Marine Corporation, now part of Fincantieri Marinette Marine, has a significant track record in shipbuilding, including naval vessels and patrol craft. They have been involved in constructing Littoral Combat Ships (LCS) for the U.S. Navy, as well as various other vessels for military and commercial clients. Their experience with complex, large-scale shipbuilding projects suggests a capability to handle the requirements for the Response Boat Medium (RB-M) vessels. The specific history with RB-M or similar Coast Guard platforms would require a deeper dive into their contract awards and performance reviews, but their general shipbuilding expertise is well-established.
How does the per-unit cost of these RB-M boats compare to similar acquisitions by the U.S. Coast Guard or other nations?
The per-unit cost of approximately $3.97 million for each Response Boat Medium (RB-M) is specific to this Foreign Military Sales (FMS) case for the Bahrain Coast Guard. Direct comparisons to standard U.S. Coast Guard domestic acquisitions of RB-Ms can be challenging due to variations in configuration, support packages, and the overhead associated with FMS. However, the RB-M platform itself is designed for specific roles, and its cost reflects advanced materials, propulsion, and integrated systems. Generally, specialized patrol boats of this size and capability can range from a few million to upwards of $10 million depending on the complexity and mission requirements. This price point appears consistent with specialized maritime assets.
What are the primary risks associated with the construction and delivery of these specialized boats?
Key risks include potential delays in manufacturing due to supply chain issues for specialized components (engines, electronics, navigation systems), labor shortages in skilled shipbuilding trades, and unforeseen technical challenges during construction or testing. For FMS cases, there's also the risk of changing requirements from the end-user nation or geopolitical factors impacting the delivery schedule or scope. Ensuring the vessels meet all specified performance criteria and are integrated with any required Bahraini systems also presents a technical risk. The firm-fixed-price nature of the contract mitigates financial risk for the government but places it on the contractor.
How effective are Response Boat Medium (RB-M) vessels in enhancing maritime security operations for coast guards?
Response Boat Medium (RB-M) vessels are designed to be versatile platforms for a range of maritime security missions, including search and rescue, law enforcement, counter-terrorism, and port security. Their effectiveness stems from their speed, maneuverability, and ability to operate in various sea conditions. For coast guard operations, they provide a crucial capability for rapid response and interdiction. The RB-M's design typically includes advanced navigation and communication systems, enabling effective coordination with other assets. Their deployment by the U.S. Coast Guard and now by international partners like Bahrain underscores their perceived value in maintaining maritime domain awareness and security.
What has been the historical spending trend for similar maritime patrol or response boat acquisitions by the Department of Homeland Security?
Historical spending by the Department of Homeland Security (DHS), particularly through the U.S. Coast Guard, on maritime patrol and response vessels has been substantial and varied. The Coast Guard has consistently invested in platforms ranging from small response boats to larger cutters. Specific programs like the RB-M acquisition itself represent significant investments over time. Spending trends are influenced by fleet modernization needs, emerging threats, and budget allocations. While this specific $23.8 million delivery order is for an FMS case, DHS's overall budget for acquiring and maintaining maritime assets reflects a continuous need for capable platforms to fulfill its diverse missions.
What is the significance of this contract being part of a Foreign Military Sales (FMS) case?
The significance of this contract being part of a Foreign Military Sales (FMS) case (U7-P-LAA) is that it represents a U.S. government-facilitated sale of defense articles and services to an allied nation. FMS cases involve a formal agreement between the U.S. and the partner nation, managed by the Department of Defense or Department of Homeland Security. This mechanism allows foreign governments to procure U.S. equipment and training under U.S. government supervision, ensuring interoperability and adherence to U.S. standards. For taxpayers, it means that U.S. defense industrial capacity is utilized to support international security cooperation, potentially strengthening alliances and promoting stability.
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: Segretariato Generale Della Presidenza Della Repubblica
Address: 1600 ELY ST, MARINETTE, WI, 54143
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,800,651
Exercised Options: $23,800,651
Current Obligation: $23,800,651
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSCG2306DARB001
IDV Type: IDC
Timeline
Start Date: 2017-06-15
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 01:50:31
Last Modified: 2024-05-01
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