Detyens Shipyards Inc. awarded $17.8M contract for Coast Guard vessel maintenance and repair

Contract Overview

Contract Amount: $17,801,707 ($17.8M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-03-05

End Date: 2009-10-28

Contract Duration: 237 days

Daily Burn Rate: $75.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRYDOCK FOR CGC DALLAS & CGC GALLATIN:RENEW FOUNDATION SUPPORT STRUCTURES FOR THE HOT AND POTABLE WATER TANKS AND EVAPORATOR PERFORM ULTRASONIC THICKNESS MEASUREMENTS IN VARIOUS LOCATIONS (200 SHOTS/SET) PERFORM ULTRASONIC THICKNESS MEASUREMENTS-SIDE AN METHOD INSPECT PILOTHOUSE DECK RENEW BULKHEAD METAL IN PASSAGEWAY 2-48-0-L PERFORM LEAK TEST OF UNDERWATER APPENDAGES REMOVE, INSPECT, AND REINSTALL SHAFT FAIRWATERS AND ROPE GUARDS CLEAN AND INSPECT OIL AND OILY WASTE TANKS. CLEAN AND INSPECT FUEL SERVICE, AVIATION SERVICE, STOWAGE, AND OVERFLOW TANKS. CLEAN AND INSPECT ACCESSIBLE VOIDS CLEAN AND INSPECT GREY WATER COLLECTION AND HOLDING TANKS. CLEAN AND INSPECT SEWAGE COLLECTION AND HOLDING TANKS.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.8 million to DETYENS SHIPYARDS INC for work described as: DRYDOCK FOR CGC DALLAS & CGC GALLATIN:RENEW FOUNDATION SUPPORT STRUCTURES FOR THE HOT AND POTABLE WATER TANKS AND EVAPORATOR PERFORM ULTRASONIC THICKNESS MEASUREMENTS IN VARIOUS LOCATIONS (200 SHOTS/SET) PERFORM ULTRASONIC THICKNESS MEASUREMENTS-SIDE AN METHOD INSPECT PILOTHOUS… Key points: 1. Contract focuses on essential structural repairs and inspections for Coast Guard cutters. 2. Work includes tank cleaning, ultrasonic thickness measurements, and hull integrity checks. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Firm-fixed-price contract type indicates a defined scope and cost, transferring risk to the contractor. 5. The duration of 237 days suggests a significant scope of work for the vessel maintenance. 6. This contract supports the operational readiness of critical Coast Guard assets.

Value Assessment

Rating: good

The contract value of $17.8 million for extensive drydocking and repair services appears reasonable given the scope of work. This includes structural renewals, ultrasonic testing, and comprehensive tank cleaning for two Coast Guard cutters. Benchmarking against similar large-scale vessel maintenance contracts suggests that this pricing is within expected ranges for specialized maritime repair services. The firm-fixed-price structure further supports value by locking in costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple shipyards were likely invited to bid. The presence of four bidders, as suggested by the data, points to a healthy level of competition. This competitive environment generally leads to more favorable pricing and better service offerings for the government, as contractors strive to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government receives fair market value for the extensive repair and maintenance services required for these critical Coast Guard vessels.

Public Impact

The U.S. Coast Guard benefits through the enhanced operational readiness and safety of the CGC Dallas and CGC Gallatin. Services include critical structural repairs, tank cleaning, and hull integrity assessments, ensuring vessel longevity. The work is performed at Detyens Shipyards in South Carolina, supporting the regional maritime industrial base. This contract indirectly supports skilled labor in shipbuilding and repair trades within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting operational availability of cutters.
Risk of unforeseen structural issues discovered during repairs leading to cost overruns if not managed contractually.
Dependence on a single contractor for a significant period could limit flexibility.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risks for the government.
Full and open competition suggests a robust selection process.
Contract duration aligns with the extensive nature of the required drydocking and repair work.
Focus on essential maintenance ensures long-term asset viability.

Sector Analysis

The maritime ship repair and shipbuilding sector is a critical component of national defense and economic infrastructure. This contract falls within the broader industrial base supporting naval and coast guard operations. Spending in this sector is often characterized by large, complex projects requiring specialized facilities and skilled labor. Comparable contracts typically involve extensive drydocking, hull work, and system overhauls for vessels of similar size and complexity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large-scale vessel repair contract, it is likely that the prime contractor, Detyens Shipyards Inc., may engage various subcontractors, potentially including small businesses for specialized services or materials. However, without specific subcontracting plans, the direct impact on the small business ecosystem is not fully detailed.

Oversight & Accountability

The contract is managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Oversight would involve program managers ensuring adherence to contract specifications, timelines, and quality standards. The firm-fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not provided.

Related Government Programs

Naval Vessel Repair Contracts
Shipbuilding and Repair Services
Coast Guard Fleet Maintenance
Maritime Infrastructure Support

Risk Flags

Potential for schedule slippage
Risk of unforeseen structural deficiencies
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.8 million to DETYENS SHIPYARDS INC. DRYDOCK FOR CGC DALLAS & CGC GALLATIN:RENEW FOUNDATION SUPPORT STRUCTURES FOR THE HOT AND POTABLE WATER TANKS AND EVAPORATOR PERFORM ULTRASONIC THICKNESS MEASUREMENTS IN VARIOUS LOCATIONS (200 SHOTS/SET) PERFORM ULTRASONIC THICKNESS MEASUREMENTS-SIDE AN METHOD INSPECT PILOTHOUSE DECK RENEW BULKHEAD METAL IN PASSAGEWAY 2-48-0-L PERFORM LEAK TEST OF UNDERWATER APPENDAGES REMOVE, INSPECT, AND REINSTALL SHAFT FAIRWATERS AND ROPE GUARDS CLEAN AND INSPECT OIL AND OILY WASTE TANKS. CLEAN AND INSPECT

Who is the contractor on this award?

The obligated recipient is DETYENS SHIPYARDS INC.

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 $17.8 million.

What is the period of performance?

Start: 2009-03-05. End: 2009-10-28.

What is the track record of Detyens Shipyards Inc. with the U.S. Coast Guard and similar federal agencies?

Detyens Shipyards Inc. has a history of performing contracts for various government entities, including the U.S. Coast Guard and the U.S. Navy. Their experience typically involves complex ship repair, maintenance, and conversion projects. Reviewing past performance evaluations and contract completion records would provide a clearer picture of their reliability, quality of work, and adherence to schedules and budgets on similar projects. Federal procurement databases often contain performance metrics and past performance information that can be analyzed to assess their suitability for complex contracts like this one.

How does the $17.8 million cost compare to similar vessel repair contracts for cutters of this size?

The $17.8 million cost for the drydocking and repair of the CGC Dallas and CGC Gallatin appears to be within a reasonable range for extensive maintenance on vessels of this class. Similar contracts for major overhauls, including hull work, tank cleaning, and structural repairs, can range from several million to tens of millions of dollars, depending on the specific scope, age of the vessel, and required upgrades. Factors such as the number of bidders and the firm-fixed-price nature of this contract suggest that competitive pressures likely influenced the final price, aiming for value. A detailed benchmark analysis would require comparing the specific line items and labor hours against other awarded contracts for comparable maintenance tasks.

What are the primary risks associated with this type of vessel maintenance contract?

The primary risks associated with this type of vessel maintenance contract include potential schedule delays due to unforeseen structural issues discovered during the repair process, which could impact the operational readiness of the Coast Guard cutters. There's also a risk of cost overruns if the scope of work needs to be significantly expanded beyond the initial fixed-price agreement, although the firm-fixed-price structure aims to mitigate this. Furthermore, the contractor's ability to meet stringent quality standards for critical repairs and inspections is a key risk factor. Ensuring adequate oversight and contingency planning is crucial to manage these potential challenges effectively.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for the government in this context because it transfers the majority of the risk for cost overruns to the contractor. This incentivizes the contractor to manage costs efficiently and complete the work within the agreed-upon price. For a well-defined scope of work like vessel drydocking and repairs, where the requirements are largely known, FFP provides cost certainty for the government. However, if significant unforeseen issues arise that necessitate a change in scope, the government may need to issue contract modifications, which could increase the overall cost.

What is the historical spending pattern for U.S. Coast Guard vessel maintenance and repair?

Historical spending for U.S. Coast Guard vessel maintenance and repair is substantial, reflecting the large and aging fleet operated by the service. The Coast Guard regularly procures services for drydocking, hull maintenance, system overhauls, and component replacements across its various classes of cutters and small boats. Annual spending can fluctuate based on fleet readiness needs, major recapitalization efforts, and the availability of shipyard capacity. This $17.8 million contract represents a significant, but not unusual, investment for maintaining the operational capability of high-endurance cutters.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1670 DRYDOCK AVE # 236, NORTH CHARLESTON, SC, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,299,007

Exercised Options: $17,801,707

Current Obligation: $17,801,707

Timeline