Dod's $58.2M MK VI Patrol Boat Contract Awarded to Safe Boats International LLC
Contract Overview
Contract Amount: $58,219,421 ($58.2M)
Contractor: Safe Boats International LLC
Awarding Agency: Department of Defense
Start Date: 2014-07-02
End Date: 2019-03-28
Contract Duration: 1,730 days
Daily Burn Rate: $33.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK VI PATROL BOATS
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98421
Plain-Language Summary
Department of Defense obligated $58.2 million to SAFE BOATS INTERNATIONAL LLC for work described as: MK VI PATROL BOATS Key points: 1. The Department of the Navy awarded a $58.2 million contract for MK VI Patrol Boats. 2. SAFE BOATS INTERNATIONAL LLC is the sole awardee, raising questions about competition. 3. The contract spans nearly five years, indicating a significant investment. 4. The sector is Boat Building, with a PSC code of 336612. 5. The contract type is Firm Fixed Price, offering cost certainty.
Value Assessment
Rating: fair
The contract value of $58.2 million for 1 unit of MK VI Patrol Boats appears high without further context on specifications and capabilities. Benchmarking against similar specialized naval vessel procurements would be necessary for a precise assessment.
Cost Per Unit: $58,219,421.13
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Naval readiness and operational capability are directly impacted by the acquisition of these patrol boats. The investment in specialized maritime assets supports national security objectives. The contract duration suggests a long-term need for these vessels within the Navy's fleet. Potential for follow-on contracts or sustainment services exists, impacting future spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High per-unit cost without clear justification.
- Long contract duration may not reflect evolving needs.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Award to a single vendor may indicate specialized capabilities.
- Supports critical naval asset acquisition.
Sector Analysis
The Boat Building sector, particularly for specialized naval vessels like patrol boats, often involves complex engineering and high manufacturing costs. Benchmarks for similar custom-built vessels are crucial for evaluating value.
Small Business Impact
Information regarding small business participation is not provided in the data. The sole-source nature of the award may limit opportunities for small businesses to participate as prime contractors or subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The contract's sole-source nature warrants close scrutiny to ensure fair pricing and adherence to requirements.
Related Government Programs
- Boat Building
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award raises concerns about competition and price.
- High per-unit cost requires further justification.
- Contract duration may exceed actual needs.
- Lack of transparency on small business participation.
- Potential for cost overruns due to lack of competition.
Tags
boat-building, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.2 million to SAFE BOATS INTERNATIONAL LLC. MK VI PATROL 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 $58.2 million.
What is the period of performance?
Start: 2014-07-02. End: 2019-03-28.
What specific capabilities and features of the MK VI Patrol Boats justify the high per-unit cost, and how do these compare to commercially available or previously procured similar vessels?
The justification for the high per-unit cost of the MK VI Patrol Boats likely lies in their specialized design for naval operations, including advanced navigation, communication, and potentially defensive systems. These are not standard commercial features. A detailed comparison with similar military-grade patrol vessels, considering factors like speed, range, payload, and survivability, would be necessary to fully assess value. Without this, the $58.2 million per unit remains a significant expenditure.
Given the sole-source nature of this award, what measures were in place to ensure fair and reasonable pricing, and what is the potential risk of cost overruns or inflated prices?
In sole-source procurements, agencies typically rely on cost realism analyses, price proposals, and sometimes independent government cost estimates to ensure fair and reasonable pricing. However, the inherent lack of competition means the government lacks the leverage of competing bids. The primary risk is that SAFE BOATS INTERNATIONAL LLC may have charged a premium due to the absence of competitive pressure, potentially leading to higher costs for taxpayers than a competed contract.
How effective are the MK VI Patrol Boats in meeting the Navy's operational requirements, and what is the long-term strategic value of this acquisition in the current geopolitical landscape?
The effectiveness of the MK VI Patrol Boats is determined by their performance in real-world naval operations, such as coastal defense, interdiction, and force protection. Their strategic value is tied to the Navy's evolving mission requirements, particularly in littoral zones and areas where larger vessels may be less suitable. The long-term value depends on their adaptability to future threats and integration with broader naval strategies.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Boat Building
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002414R2230
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8800 BARNEY WHITE RD, BREMERTON, WA, 98312
Business Categories: Category Business, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,219,421
Exercised Options: $58,219,421
Current Obligation: $58,219,421
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-02
Current End Date: 2019-03-28
Potential End Date: 2019-03-28 00:00:00
Last Modified: 2018-07-13
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