DHS awards $32.4M Vigor Shipyards contract for multi-option dockside services, raising value-for-money questions

Contract Overview

Contract Amount: $32,375,627 ($32.4M)

Contractor: Vigor Shipyards, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-11-05

End Date: 2014-10-08

Contract Duration: 1,433 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HEALY MULTI-OPTION DOCKSIDE CONTRACT

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.4 million to VIGOR SHIPYARDS, LLC for work described as: HEALY MULTI-OPTION DOCKSIDE CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a potentially competitive pricing environment. 2. The contract's duration of 1433 days indicates a long-term commitment for dockside services. 3. Fixed-price contract type aims to control costs, but scope creep could impact final expenditure. 4. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repairing, a specialized sector. 5. Awarded by the U.S. Coast Guard, the services are critical for maritime operational readiness. 6. The contract's value of $32.4 million warrants scrutiny for efficiency and necessity over its term.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details and comparable contracts. However, a $32.4 million award over approximately four years for dockside services suggests a significant investment. The fixed-price nature provides some cost certainty, but the 'multi-option' aspect could lead to cost increases if options are exercised. Further analysis would require comparing unit costs for specific services against industry benchmarks and other government contracts for similar support.

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 that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 3 bidders suggests a moderate level of competition. This approach aims to balance broad market access with specific requirements, but the exclusion of certain sources warrants understanding to ensure optimal price discovery.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging lower prices. However, the extent of competition and the rationale for excluding sources will determine the ultimate cost savings achieved.

Public Impact

The U.S. Coast Guard benefits from essential dockside services, ensuring the operational readiness of its fleet. Maritime security and operational capabilities are enhanced through the provision of these critical support services. The contract supports jobs within the shipbuilding and repairing industry, specifically in Washington state. Vessel maintenance and repair activities contribute to the longevity and effectiveness of Coast Guard assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contract options are exercised without strict oversight.
The 'exclusion of sources' in the competition process could limit the pool of potential bidders and impact price competitiveness.
Lack of detailed service scope makes it difficult to assess true value-for-money without further context.

Positive Signals

Awarded through full and open competition, indicating an effort to leverage market forces.
Fixed-price contract type provides a degree of cost control for the government.
The contract supports a critical national security agency (U.S. Coast Guard).

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a specialized industrial base crucial for national defense and maritime operations. Contracts in this sector often involve complex engineering, skilled labor, and significant capital investment. Government spending in this area typically supports naval readiness, coast guard operations, and commercial shipbuilding initiatives. Benchmarking requires comparing against similar large-scale vessel support contracts within the defense and maritime sectors.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As the prime contractor is Vigor Shipyards, LLC, a large entity, it is possible that subcontracting opportunities may exist for small businesses within the supply chain for materials or specialized services. However, without specific contract clauses or reporting, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, which incentivizes the contractor to complete work within the agreed-upon price. Transparency would be enhanced through public contract databases and reporting requirements, though specific oversight activities and Inspector General involvement would depend on the contract's performance and any reported issues.

Related Government Programs

U.S. Coast Guard Vessel Maintenance Contracts
Naval Shipyard Support Services
Maritime Defense Industrial Base Contracts
Federal Shipbuilding and Repair Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Value for money assessment requires more detailed service and pricing information.
Contract duration may expose it to changing market conditions or technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.4 million to VIGOR SHIPYARDS, LLC. HEALY MULTI-OPTION DOCKSIDE 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 $32.4 million.

What is the period of performance?

Start: 2010-11-05. End: 2014-10-08.

What specific dockside services are covered under this contract, and how were the unit prices determined?

The provided data does not specify the exact dockside services included in the 'HEALY MULTI-OPTION DOCKSIDE CONTRACT.' These could range from routine maintenance, repairs, berthing, and logistical support to more specialized services. The unit prices would typically be negotiated during the bidding process, based on cost proposals submitted by bidders, market research on labor and material costs, and the government's assessment of fair and reasonable pricing. Without the detailed contract statement of work and pricing details, a precise determination of unit price justification is not possible from this summary data.

How does the $32.4 million contract value compare to similar dockside service contracts awarded by the U.S. Coast Guard or other agencies?

Comparing the $32.4 million value requires access to a database of similar contracts. However, for a multi-year contract (1433 days, approx. 4 years) for comprehensive dockside services to support significant assets like those operated by the U.S. Coast Guard, this value appears substantial but not necessarily excessive. Factors influencing this value include the complexity of services, geographic location, labor rates, and the specific vessels being supported. A detailed comparison would involve identifying contracts with similar scope, duration, and agency for a robust benchmark.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance monitored?

Key performance indicators (KPIs) for a dockside services contract would likely focus on timeliness of service delivery, quality of repairs and maintenance, adherence to safety standards, and cost control. Contractor performance is typically monitored through regular progress meetings, inspections of work performed, review of delivery schedules, and feedback from end-users (e.g., vessel captains and crews). The U.S. Coast Guard's contracting officer and technical representatives would be responsible for overseeing performance against the contract's terms and conditions.

What is Vigor Shipyards, LLC's track record with federal contracts, particularly with the U.S. Coast Guard?

Vigor Shipyards, LLC has a history of performing federal contracts, including significant work with the U.S. military and maritime agencies. Their experience often involves shipbuilding, repair, and maintenance services. While specific details of their performance on past U.S. Coast Guard contracts are not provided here, their selection for a contract of this magnitude suggests a demonstrated capability and a generally acceptable performance record. A deeper dive into contract databases and performance reports (like past performance questionnaires) would offer a more granular view of their track record.

What is the potential impact of the 'exclusion of sources' clause on the overall cost-effectiveness of this contract?

The 'exclusion of sources' clause in a 'Full and Open Competition After Exclusion of Sources' contract means that while the competition was intended to be broad, certain potential bidders were intentionally not considered. The impact on cost-effectiveness depends heavily on the justification for these exclusions. If sources were excluded for valid, objective reasons related to capability, security, or specific technical requirements, the remaining competition might still yield competitive pricing. However, if sources were excluded arbitrarily or without strong justification, it could limit competition, potentially leading to higher prices than if the market had been fully open.

How has federal spending on shipbuilding and repairing (NAICS 336611) trended in recent years, and where does this contract fit?

Federal spending on shipbuilding and repairing (NAICS 336611) is significantly influenced by defense budgets and national security priorities. Spending tends to be cyclical, often increasing during periods of heightened geopolitical tension or fleet modernization efforts. This $32.4 million contract represents a specific investment within this broader category, likely supporting the operational readiness and maintenance of the U.S. Coast Guard's assets. Its placement within overall spending trends would depend on the specific fiscal years and the strategic importance placed on maritime security and operational capabilities at the time of award.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $32,375,627

Exercised Options: $32,375,627

Current Obligation: $32,375,627

Contract Characteristics

Cost or Pricing Data: NO

Timeline