Navy Awards $118M Contract for Specialized Barges to VT Halter Marine, Inc

Contract Overview

Contract Amount: $208,516,956 ($208.5M)

Contractor: Bollinger Mississippi Shipbuilding, LLC

Awarding Agency: Department of Defense

Start Date: 2005-11-29

End Date: 2018-11-21

Contract Duration: 4,740 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200608!FF3576!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C2215 !A!N! !N! ! !20051129!20060930!118359939!595310491!595950213!N!VT HALTER MARINE, INC !900 BAYOU CASOTTE PARKWAY !PASCAGOULA !MS!39581!55360!059!28!PASCAGOULA !JACKSON !MISS !+000000998574!N!N!000000998574!1935!BARGES AND LIGHTERS, SPECIAL PURPOSE !A3 !SHIPS !592 !T-AKE !336611!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!J!2!003!B! !Z!Y!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39581

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $208.5 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: 200608!FF3576!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C2215 !A!N! !N! ! !20051129!20060930!118359939!595310491!595950213!N!VT HALTER MARINE, INC !900 BAYOU CASOTTE PARKWAY !PASCAGOULA !MS!39581!55360!059!28!PASCAGOULA !JACK… Key points: 1. Contract awarded for specialized purpose barges, indicating a specific need within naval operations. 2. Competition was full and open, suggesting a competitive bidding process for this requirement. 3. The contract value is substantial at $118 million, reflecting the scale of the procurement. 4. The sector is Defense, specifically shipbuilding and repair, a critical area for military readiness.

Value Assessment

Rating: good

The contract value of $118,359,939 is a significant investment. Benchmarking against similar specialized barge contracts is difficult without more specific technical details, but the price appears reasonable for a custom naval requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the specialized vessels.

Public Impact

Enhances naval operational capabilities with specialized vessels. Supports shipbuilding industry jobs in Mississippi. Ensures the Navy has the necessary assets for specific logistical or operational missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex shipbuilding projects.
Long-term maintenance and operational costs not detailed.
Dependence on a single contractor for specialized construction.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type helps control costs.
Supports domestic shipbuilding and a specific region.

Sector Analysis

This contract falls within the Defense sector, specifically Ship Building and Repair. Spending in this area is crucial for national security and maintaining naval fleet capabilities. Benchmarks for specialized naval vessels vary widely based on complexity and size.

Small Business Impact

While the prime contractor is VT Halter Marine, Inc., a large business, the contract details do not specify any subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy's Naval Sea Systems Command is responsible for this procurement. Oversight would involve monitoring contract performance, adherence to specifications, and timely delivery of the specialized barges.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Complexity of specialized shipbuilding.
Potential for schedule delays.
Long-term sustainment costs.
Dependence on a single supplier for critical assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $208.5 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. 200608!FF3576!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C2215 !A!N! !N! ! !20051129!20060930!118359939!595310491!595950213!N!VT HALTER MARINE, INC !900 BAYOU CASOTTE PARKWAY !PASCAGOULA !MS!39581!55360!059!28!PASCAGOULA !JACKSON !MISS !+000000998574!N!N!000000998574!1935!BARGES AND LIGHTERS, SPECIAL PURPOSE !A3 !SHIPS !592 !T-AKE !336611!E! !3! ! ! ! ! !999

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 $208.5 million.

What is the period of performance?

Start: 2005-11-29. End: 2018-11-21.

What specific operational needs do these specialized barges fulfill for the Navy?

These specialized purpose barges likely support unique naval operations such as mobile logistics, specialized cargo transport, or potentially serving as platforms for specific equipment or systems. Their design would be tailored to meet the demanding requirements of naval deployment and mission execution, ensuring flexibility and capability enhancement for the fleet.

What are the key performance metrics and delivery timelines for these barges?

The contract specifies a performance period from November 29, 2005, to September 30, 2006, with an ultimate completion date of November 21, 2018, suggesting a phased delivery or potential for follow-on work. Key performance metrics would likely include structural integrity, load capacity, maneuverability, and compliance with naval standards.

How does the firm fixed-price structure mitigate risks for the government?

A Firm Fixed Price (FFP) contract shifts the risk of cost overruns to the contractor, VT Halter Marine, Inc. This means the government pays a set price regardless of the contractor's actual costs, providing budget certainty. However, it requires thorough initial cost estimation and specification definition to avoid disputes or inadequate performance.

Industry Classification

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

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Singapore Technologies Engineering Ltd (UEI: 595933904)

Address: 900 BAYOU CASOTTE PARKWAY, PASCAGOULA, MS, 39581

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline