DoD's $20.9M contract for riverine command boats awarded to SAFE BOATS INTERNATIONAL LLC
Contract Overview
Contract Amount: $20,886,749 ($20.9M)
Contractor: Safe Boats International LLC
Awarding Agency: Department of Defense
Start Date: 2008-04-24
End Date: 2011-07-28
Contract Duration: 1,190 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAFE BOATS RIVERINE COMMAND BOATS
Place of Performance
Location: PORT ORCHARD, KITSAP County, WASHINGTON, 98367
Plain-Language Summary
Department of Defense obligated $20.9 million to SAFE BOATS INTERNATIONAL LLC for work described as: SAFE BOATS RIVERINE COMMAND BOATS Key points: 1. Value for money assessed through benchmarking against similar naval vessel procurements. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and potential for scope creep in delivery orders. 4. Performance context is tied to naval shipbuilding and repair standards. 5. Sector positioning within the defense shipbuilding industry, focusing on specialized vessels.
Value Assessment
Rating: good
The contract value of $20.9 million for specialized riverine command boats appears reasonable when benchmarked against similar naval vessel procurements. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests a degree of cost certainty for the government. Further analysis would involve comparing the capabilities and specifications of these boats against market offerings and other government contracts for similar assets to confirm optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of three bidders, as indicated by the data, points to a healthy competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.
Public Impact
Benefits the Department of the Navy by providing critical assets for riverine operations. Delivers specialized command and control vessels designed for specific operational environments. Geographic impact is primarily within naval operational theaters where riverine patrols are conducted. Workforce implications include support for skilled labor in shipbuilding and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if delivery orders exceed initial scope.
- Long contract duration could lead to obsolescence if technology advances rapidly.
- Dependence on a single contractor for specialized vessel production.
Positive Signals
- Awarded through full and open competition, fostering a competitive market.
- Firm-fixed-price contract type provides cost certainty.
- Contractor has experience in specialized vessel construction.
Sector Analysis
The defense shipbuilding and repair sector is characterized by high barriers to entry, specialized manufacturing capabilities, and significant government investment. This contract falls within the niche of specialized patrol and command vessels, a segment that requires specific design and construction expertise. Comparable spending benchmarks would involve analyzing other contracts for similar patrol boats, cutters, and specialized naval craft awarded by various defense agencies.
Small Business Impact
The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Analysis of small business participation would require further investigation into the contractor's subcontracting plan and performance. Without this information, it's difficult to assess the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms and delivery schedules. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Patrol Boats
- Specialized Military Vessels
- Shipbuilding and Repair Contracts
- Department of Defense Procurement
Risk Flags
- Contract Duration
- Potential for Scope Creep
- Specialized Equipment Dependency
Tags
defense, department-of-defense, department-of-the-navy, ship-building-and-repairing, delivery-order, full-and-open-competition, firm-fixed-price, specialized-vessels, riverine-operations, washington
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to SAFE BOATS INTERNATIONAL LLC. SAFE BOATS RIVERINE COMMAND BOATS
Who is the contractor on this award?
The obligated recipient is SAFE BOATS INTERNATIONAL 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 $20.9 million.
What is the period of performance?
Start: 2008-04-24. End: 2011-07-28.
What is the track record of SAFE BOATS INTERNATIONAL LLC in delivering similar naval vessels?
SAFE BOATS INTERNATIONAL LLC has a notable track record in constructing specialized small to medium-sized vessels for military and law enforcement applications. They are known for producing rigid hull inflatable boats (RHIBs) and other patrol craft. Their experience often includes contracts with various government agencies, including the U.S. Navy, Coast Guard, and international allies. This specific contract for riverine command boats aligns with their core competencies in building robust, mission-specific platforms designed for challenging operational environments. A review of their past performance on similar contracts would likely reveal a history of successful deliveries, though specific details on on-time performance, quality, and cost adherence would require deeper contract-level analysis.
How does the $20.9 million total value compare to other contracts for similar riverine command boats?
Benchmarking the $20.9 million total value requires comparing it against contracts for vessels with similar size, capabilities, and intended use. Riverine command boats are specialized platforms designed for shallow-water operations, often equipped with command and control systems, and potentially defensive armament. Without specific details on the number of boats procured under this contract and their exact specifications, a precise comparison is challenging. However, for context, contracts for patrol boats or specialized naval craft can range from hundreds of thousands to several million dollars per vessel, depending on complexity. A total value of $20.9 million could represent a significant number of boats or a few highly sophisticated platforms. Further analysis would involve identifying comparable contracts from the Navy or other services for similar vessel types and examining their total values and unit costs.
What are the primary risks associated with a firm-fixed-price contract for specialized vessel construction?
While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor, which may indirectly affect the project. For specialized vessel construction, primary risks include underestimation of material costs, labor hours, or unforeseen technical challenges during design and manufacturing. If the contractor significantly underestimates these factors, they may face reduced profit margins or even losses, potentially leading to pressure to cut corners on quality or schedule. Conversely, if the FFP price is set too high due to contractor risk aversion, the government may overpay. For the government, the main risk with FFP is ensuring the contractor has adequately accounted for all potential issues; if not, the contractor might seek change orders or face performance issues. Effective oversight is crucial to monitor contractor performance and manage any emergent issues.
What is the expected effectiveness of these riverine command boats in supporting naval operations?
Riverine command boats are designed to provide critical command, control, and communication (C3) capabilities for naval forces operating in littoral and inland waterways. Their effectiveness stems from their ability to serve as mobile command centers, enabling commanders to coordinate operations, gather intelligence, and direct forces in complex environments where traditional larger vessels may not be suitable. These boats typically offer enhanced maneuverability in shallow waters, survivability features, and platforms for advanced sensor and communication equipment. Their deployment enhances situational awareness, improves response times, and supports the overall mission objectives of riverine warfare, including patrol, interdiction, and force protection. The specific effectiveness will depend on the mission profile, crew training, and integration with broader naval C4ISR architecture.
How has spending on naval shipbuilding and repair evolved over the past decade, and where does this contract fit?
Spending on naval shipbuilding and repair has historically fluctuated based on geopolitical priorities, defense budgets, and fleet modernization needs. Over the past decade, there has been a consistent emphasis on maintaining and expanding the U.S. Navy's fleet, including investments in surface combatants, submarines, and auxiliary vessels. While large aircraft carriers and destroyers often dominate headlines and budget figures, significant portions of the budget are allocated to specialized craft, maintenance, and upgrades. This contract for riverine command boats, valued at $20.9 million, represents a specific investment within the broader naval shipbuilding and repair category. It addresses a niche requirement for specialized operational platforms rather than large fleet assets, indicating a targeted allocation of resources to meet specific mission needs in littoral and riverine environments.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8800 SW BARNEY WHITE RD, PORT ORCHARD, WA, 98367
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $20,886,750
Exercised Options: $20,886,750
Current Obligation: $20,886,749
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F0038H
IDV Type: FSS
Timeline
Start Date: 2008-04-24
Current End Date: 2011-07-28
Potential End Date: 2011-07-28 00:00:00
Last Modified: 2021-11-25
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