DoD's $711M Fast Missile Craft Contract Awarded to Bollinger Mississippi Shipbuilding Lacks Competition
Contract Overview
Contract Amount: $711,305,770 ($711.3M)
Contractor: Bollinger Mississippi Shipbuilding, LLC
Awarding Agency: Department of Defense
Start Date: 2005-11-30
End Date: 2017-03-10
Contract Duration: 4,118 days
Daily Burn Rate: $172.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EGYPTIAN FAST MISSLE CRAFT - FUNCTIONAL DESIGN
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39581
Plain-Language Summary
Department of Defense obligated $711.3 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: EGYPTIAN FAST MISSLE CRAFT - FUNCTIONAL DESIGN Key points: 1. Significant spending of $711M on missile craft. 2. Sole contractor, Bollinger Mississippi Shipbuilding, raises competition concerns. 3. Long contract duration (2005-2017) suggests potential for cost overruns. 4. Shipbuilding and Repair sector is critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $711M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar naval vessel contracts. The firm fixed price structure offers some cost control, but the lack of competition is a primary concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competitive bidding likely resulted in higher prices than could have been achieved through an open market process, impacting price discovery.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure, as the government did not explore alternative vendors or pricing structures.
Public Impact
National security implications due to the acquisition of advanced naval assets. Potential for taxpayer funds to be used inefficiently without competitive oversight. Impact on the shipbuilding industry, potentially favoring incumbent contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Limited small business participation
Positive Signals
- Firm fixed price contract type
- Definitive contract award
Sector Analysis
The Department of Defense's spending in the shipbuilding and repair sector is crucial for maintaining naval capabilities. Benchmarks for similar naval vessel contracts are essential for evaluating cost-effectiveness, especially when competition is limited.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities within the shipbuilding and repair sector.
Oversight & Accountability
The long duration and lack of competition warrant closer oversight to ensure the contract remained aligned with evolving defense needs and that costs were managed effectively. Accountability for the procurement process is key.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- Long contract performance period (over 11 years)
- Limited transparency on justification for non-competition
- No reported small business participation
Tags
ship-building-and-repairing, department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $711.3 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. EGYPTIAN FAST MISSLE CRAFT - FUNCTIONAL DESIGN
Who is the contractor on this award?
The obligated recipient is BOLLINGER MISSISSIPPI SHIPBUILDING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $711.3 million.
What is the period of performance?
Start: 2005-11-30. End: 2017-03-10.
What was the justification for awarding this contract on a limited/non-competitive basis?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by federal acquisition regulations, outlining specific reasons such as unique capabilities, urgent need, or lack of qualified sources. Without this justification, it's impossible to fully assess the necessity of the limited competition.
How did the final cost compare to initial projections, given the firm fixed price structure?
While the contract was firm fixed price, the total award amount was $711,305,769.63. Without access to initial projections or cost breakdowns, it's difficult to definitively state how the final cost compared. However, the lack of competition raises concerns that the initial price might not have been as optimized as it could have been.
What is the operational effectiveness and strategic value of these fast missile craft for the Navy?
Fast missile craft are designed for rapid deployment and engagement of enemy vessels with standoff missile capabilities. Their strategic value lies in providing a mobile, offensive platform that can project power and deter adversaries. The effectiveness would depend on their specific armament, survivability, and integration into broader naval operations.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002405R2215
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Singapore Technologies Engineering Ltd
Address: 900 BAYOU CASOTTE PARKWAY, PASCAGOULA, MS, 39581
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $985,000,244
Exercised Options: $810,198,472
Current Obligation: $711,305,770
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-11-30
Current End Date: 2017-03-10
Potential End Date: 2017-03-10 00:00:00
Last Modified: 2022-11-03
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