DoD awards $42.7M for MK VI PB, with 3 delivery orders under firm fixed price contract
Contract Overview
Contract Amount: $42,755,221 ($42.8M)
Contractor: Safe Boats International LLC
Awarding Agency: Department of Defense
Start Date: 2012-05-14
End Date: 2016-06-30
Contract Duration: 1,508 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK VI PB
Place of Performance
Location: BREMERTON, KITSAP County, WASHINGTON, 98312
Plain-Language Summary
Department of Defense obligated $42.8 million to SAFE BOATS INTERNATIONAL LLC for work described as: MK VI PB Key points: 1. The contract value is $42.7 million, awarded to SAFE BOATS INTERNATIONAL LLC. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. The sector is Ship Building and Repairing, a critical defense industry.
Value Assessment
Rating: good
The contract was awarded under a firm fixed price structure, which is generally favorable for the government in managing cost certainty. The total award value of $42.7 million for 3 delivery orders over a 1508-day duration suggests a reasonable unit price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple bidders had the opportunity to compete. This method typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, driving down prices and ensuring value for money.
Public Impact
Ensures the availability of specialized patrol boats for naval operations. Supports the shipbuilding and repair industry, contributing to economic activity. The firm fixed price contract provides cost predictability for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1508 days).
- Limited information on specific performance metrics.
- Potential for cost overruns if scope changes significantly.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Awarded to a single, established contractor.
Sector Analysis
The shipbuilding and repairing sector is capital-intensive and requires specialized expertise. Benchmarks for similar patrol boat contracts would be necessary for a precise comparison, but the award value appears within a reasonable range for complex naval vessels.
Small Business Impact
There is no indication that small businesses were involved as prime contractors or significant subcontractors in this award. Further analysis would be needed to determine if small business goals were met through subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms. The use of delivery orders under a larger contract structure allows for phased execution and monitoring.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Potential for scope creep.
- Limited visibility into specific performance metrics.
- No explicit mention of small business participation.
Tags
ship-building-and-repairing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to SAFE BOATS INTERNATIONAL LLC. MK VI PB
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 $42.8 million.
What is the period of performance?
Start: 2012-05-14. End: 2016-06-30.
What was the specific capability or purpose of the MK VI PB, and how does its cost align with similar naval assets?
The MK VI PB likely refers to a specific class of patrol boat used by the Navy for various missions, potentially including coastal defense, interdiction, or force protection. Without detailed specifications and comparisons to other naval vessels of similar size and capability, it's difficult to definitively assess its cost-effectiveness. However, the $42.7 million award for three units over several years suggests a significant investment per vessel.
What are the primary risks associated with a long-duration, firm fixed-price contract for shipbuilding, and how were they mitigated?
The primary risks include potential contractor underestimation of costs, material price fluctuations, and unforeseen technical challenges over the 1508-day period. Mitigation strategies could involve detailed contract specifications, performance incentives, robust quality assurance, and contingency planning within the contractor's bid. The firm fixed price shifts cost overrun risk to the contractor, but could lead to reduced quality if not managed properly.
How effectively did the full and open competition process ensure the best value for the taxpayer in this shipbuilding contract?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best prices and technical solutions. The effectiveness in this case depends on the number of bids received and the competitiveness of those bids. If multiple qualified shipbuilders participated and the winning bid was significantly lower than others, it indicates good value. Conversely, if only a few bids were received, the competitive pressure might have been limited.
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 BARNEY WHITE RD, BREMERTON, WA, 98312
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,755,221
Exercised Options: $42,755,221
Current Obligation: $42,755,221
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS07F0038H
IDV Type: FSS
Timeline
Start Date: 2012-05-14
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2021-11-25
More Contracts from Safe Boats International LLC
- Msi-Ds DS30 Cannons — $173.9M (Department of Defense)
- MK VI Patrol Boats — $58.2M (Department of Defense)
- Combined Foreign Military Sales Purchase With Safe Boats International (SBI) for the Countries of Costa Rica, Tunisia, Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Uzbekistan, Liberia, Chile, and the Ivory Coast, AS Well AS the Regional Security System in the East Caribbean — $22.9M (Department of Homeland Security)
- Safe Boats Riverine Command Boats — $20.9M (Department of Defense)
- This IS a Commercial Firm-Fixed Price Contract in Support of Foreign Military Sales Case NO. Ci-P-Sab With the Government of Chile for the Acquisition, Manufacture, and Delivery of Twelve (12) 44' Arch Angel Class Boats (TEN (10) With Self-Righting Configuration and TWO (2) With Standard Configuration) With TWO (2) Trailers, TEN (10) Non-Rolling Chocks, ONE (1) Training Package, ONE 25' Defender Class Boat With Trailer, Asscociated Packaging (including Shrink Wrapping Hulls), and Crane Service — $19.9M (Department of Homeland Security)
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)