Navy Awards $97.6M Ship Building Contract to Bollinger Mississippi Shipbuilding
Contract Overview
Contract Amount: $97,587,905 ($97.6M)
Contractor: Bollinger Mississippi Shipbuilding, LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-22
End Date: 2019-09-30
Contract Duration: 3,569 days
Daily Burn Rate: $27.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-AGS 66 DETAIL DESIGN AND CONSTRUCTION
Place of Performance
Location: MOSS POINT, JACKSON County, MISSISSIPPI, 39562
Plain-Language Summary
Department of Defense obligated $97.6 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: T-AGS 66 DETAIL DESIGN AND CONSTRUCTION Key points: 1. Contract awarded for detail design and construction of T-AGS 66. 2. Bollinger Mississippi Shipbuilding is the sole awardee. 3. The contract is a firm fixed price definitive contract. 4. This award falls under the Ship Building and Repairing sector.
Value Assessment
Rating: fair
The contract value of $97.6 million for a ship design and construction project appears within a reasonable range for this type of specialized work. However, without specific details on the ship's complexity and features, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the T-AGS 66 detail design and construction.
Public Impact
Naval shipbuilding capabilities are maintained through this contract. The project supports jobs in Mississippi's shipbuilding industry. The T-AGS 66 will contribute to the Navy's operational fleet. Long-term maintenance and support implications for the vessel are not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration (9 years) increases risk of cost overruns or scope creep.
- Lack of small business participation noted.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Award to a specific shipyard supports regional economic development.
Sector Analysis
The Ship Building and Repairing sector is characterized by high capital investment, specialized labor, and long project timelines. Government contracts, particularly for defense, are significant drivers of activity, often involving complex technical requirements and substantial budgets.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This suggests that the prime contractor, Bollinger Mississippi Shipbuilding, is likely a large business, and subcontracting opportunities for small businesses were not a stated focus.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Robust oversight would be necessary to monitor performance and manage potential risks throughout the extended contract duration.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration increases risk.
- No small business participation.
- Potential for cost overruns despite fixed price.
- Lack of transparency in price discovery.
Tags
ship-building-and-repairing, department-of-defense, ms, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.6 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. T-AGS 66 DETAIL DESIGN AND CONSTRUCTION
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 $97.6 million.
What is the period of performance?
Start: 2009-12-22. End: 2019-09-30.
What specific capabilities will the T-AGS 66 provide to the Navy, and how do these capabilities justify the sole-source award and associated cost?
The T-AGS 66 is a Naval Oceanographic Survey Ship, crucial for gathering vital data supporting naval operations, including hydrographic surveys, oceanographic measurements, and acoustic monitoring. While specific capabilities are classified or proprietary, the specialized nature of its design and construction, potentially involving unique technologies or integration requirements, may have led the Navy to determine that only Bollinger Mississippi Shipbuilding possessed the necessary expertise and facilities for this particular vessel, thus justifying a sole-source award to ensure timely delivery of critical assets.
Given the 9-year duration and sole-source nature, what mechanisms are in place to mitigate cost escalation and ensure the government receives fair value?
Although the contract is firm fixed price, the extended duration presents inherent risks. Mitigation strategies would typically involve stringent contract management, including detailed milestone reviews, performance monitoring, and change order controls. The government's procurement team would need to actively manage the contract, ensuring that any proposed changes are thoroughly vetted for necessity and cost-effectiveness. Regular market research and cost analysis, even for sole-source contracts, can help identify potential areas for savings or validate the overall pricing.
How does the lack of competition in this award impact the overall shipbuilding industrial base and future government procurement strategies?
Sole-source awards, while sometimes necessary for unique requirements, can stifle competition within the shipbuilding industrial base over time. If consistently used, it may reduce the incentive for shipyards to invest in innovation or cost-saving measures, knowing they can secure contracts without competitive pressure. This can also limit the government's options in future procurements, potentially leading to higher prices and reduced access to a diverse range of capabilities. A balanced approach, prioritizing competition where feasible, is generally beneficial for maintaining a robust and cost-effective industrial base.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002409R2239
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Singapore Technologies Engineering Ltd (UEI: 595933904)
Address: 900 BAYOU CASOTTE PKWY, PASCAGOULA, MS, 39581
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,588,125
Exercised Options: $97,588,125
Current Obligation: $97,587,905
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-22
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2019-07-29
More Contracts from Bollinger Mississippi Shipbuilding, LLC
- Polar Security Cutter #1 (formerly Hpib) Detail Design and Construction — $2.0B (Department of Defense)
- Egyptian Fast Missle Craft - Functional Design — $711.3M (Department of Defense)
- Apl(s) Craft NO. 1 — $336.5M (Department of Defense)
- 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! ! — $208.5M (Department of Defense)
- T-Ags 67 — $166.5M (Department of Defense)
View all Bollinger Mississippi Shipbuilding, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)