DHS Coast Guard Awards $91M Ship Building Contract to Vigor Shipyards

Contract Overview

Contract Amount: $91,156,129 ($91.2M)

Contractor: Vigor Shipyards, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-02-25

End Date: 2013-12-31

Contract Duration: 1,770 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: Other

Official Description: POLAR CLASS MULTI SHIP MULTI OPTION CONTRACT

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $91.2 million to VIGOR SHIPYARDS, LLC for work described as: POLAR CLASS MULTI SHIP MULTI OPTION CONTRACT Key points: 1. Contract awarded for ship building and repair services. 2. Vigor Shipyards, LLC is the sole contractor. 3. The contract has a significant value of $91.16 million. 4. The contract type is Cost Plus Incentive, suggesting shared risk and reward. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed carefully. Benchmarking per-unit cost for such specialized vessels is difficult without detailed specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for best value while potentially limiting the pool of bidders.

Taxpayer Impact: Taxpayer funds are being used for specialized shipbuilding, with the final cost influenced by the incentive structure and potential cost overruns.

Public Impact

Supports the U.S. Coast Guard's operational capabilities through vessel acquisition and maintenance. Impacts the maritime industry by creating demand for shipbuilding and repair services. Contributes to the economic activity within the shipbuilding sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive contracts can be prone to cost overruns.
Exclusion of sources in competition may limit optimal price discovery.
Long contract duration (2009-2013) could lead to scope creep or outdated technology.

Positive Signals

Full and open competition aims for best value.
Supports critical national security and maritime safety missions.
Contract awarded to a known entity in the shipbuilding sector.

Sector Analysis

This contract falls within the Shipbuilding and Repair sector, a capital-intensive industry requiring specialized skills and facilities. Spending benchmarks vary widely based on vessel type and complexity.

Small Business Impact

The data does not indicate any specific provisions or participation by small businesses in this contract.

Oversight & Accountability

Oversight would typically involve the U.S. Coast Guard monitoring contract performance, costs, and adherence to specifications to ensure accountability and value for taxpayer money.

Related Government Programs

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

Risk Flags

Cost Plus Incentive contract type risk
Potential for cost overruns
Limited competition due to source exclusion
Long contract duration
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $91.2 million to VIGOR SHIPYARDS, LLC. POLAR CLASS MULTI SHIP MULTI OPTION CONTRACT

Who is the contractor on this award?

The obligated recipient is VIGOR SHIPYARDS, 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 $91.2 million.

What is the period of performance?

Start: 2009-02-25. End: 2013-12-31.

What was the final cost compared to the initial estimate, and how did the incentive structure impact the final price?

The provided data does not include the final cost or detailed breakdowns of how the incentive structure influenced the final price. A thorough analysis would require access to post-award financial reports and performance metrics to assess if the incentives effectively controlled costs or led to overruns.

What were the specific reasons for excluding certain sources during the full and open competition process?

The rationale for excluding sources in a 'Full and Open Competition after Exclusion of Sources' typically relates to specific technical requirements, security clearances, or unique capabilities not met by all potential bidders. Understanding these exclusions is crucial to evaluating the fairness and competitiveness of the bidding process.

How effectively did this contract support the U.S. Coast Guard's mission objectives given the vessel type and capabilities acquired?

Assessing effectiveness requires comparing the delivered vessels' capabilities against the Coast Guard's operational needs and mission requirements. This involves evaluating factors like vessel performance, reliability, and suitability for intended duties, which are not detailed in the contract award data.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCG85-08-R-6BX415

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

Address: 1801 16TH AVE SW, SEATTLE, WA, 07

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

Financial Breakdown

Contract Ceiling: $91,156,129

Exercised Options: $91,156,129

Current Obligation: $91,156,129

Contract Characteristics

Cost or Pricing Data: YES

Timeline