Navy awards $166.5M contract for shipbuilding and repair to Bollinger Mississippi Shipbuilding, LLC

Contract Overview

Contract Amount: $166,455,007 ($166.5M)

Contractor: Bollinger Mississippi Shipbuilding, LLC

Awarding Agency: Department of Defense

Start Date: 2018-11-16

End Date: 2025-12-31

Contract Duration: 2,602 days

Daily Burn Rate: $64.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-AGS 67

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39581

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $166.5 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC for work described as: T-AGS 67 Key points: 1. Contract awarded for shipbuilding and repair services. 2. Bollinger Mississippi Shipbuilding, LLC is the sole contractor. 3. The contract has a long duration, spanning over 2600 days. 4. The contract is a firm-fixed-price type, indicating price certainty. 5. The contract is not a small business set-aside. 6. The contract is for a significant dollar amount, exceeding $166 million.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable contracts. The firm-fixed-price structure provides cost certainty for the government, but the total value of $166.5 million over its duration suggests a substantial investment. Further analysis would require understanding the scope of work, the specific vessels or repairs involved, and market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This raises questions about whether alternative contractors were considered or if there were specific justifications for not competing the award. Without a competitive process, it is difficult to ascertain if the government secured the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition may reduce pressure on the contractor to offer the most competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential shipbuilding and repair services. The contract supports the maintenance and readiness of naval assets. The geographic impact is concentrated in Mississippi, where Bollinger Mississippi Shipbuilding, LLC is located. The contract likely supports a significant workforce in the shipbuilding and repair sector in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Long contract duration could lead to scope creep or evolving needs not fully captured in initial pricing.
Sole-source awards can limit opportunities for other qualified businesses.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a specific shipyard suggests a strategic decision for specialized capabilities or existing relationships.
Long-term award may indicate a stable, ongoing need for these services.

Sector Analysis

The shipbuilding and repair industry is a critical component of the defense industrial base, supporting naval readiness and national security. This contract falls within the broader manufacturing sector, specifically focused on heavy industrial equipment and services. The North American Industry Classification System (NAICS) code 336611, 'Ship Building and Repairing,' encompasses establishments primarily engaged in building and repairing ships and other marine vessels. Spending in this sector can be substantial, driven by defense procurement and commercial shipping needs.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be necessary to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Transparency is limited by the sole-source nature of the award. Accountability measures would be defined within the contract terms and conditions, including performance standards and payment schedules. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval shipbuilding programs
Ship repair and maintenance contracts
Defense industrial base support

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Lack of detailed scope of work makes value assessment difficult.
Long contract duration requires careful monitoring for scope creep and evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $166.5 million to BOLLINGER MISSISSIPPI SHIPBUILDING, LLC. T-AGS 67

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 $166.5 million.

What is the period of performance?

Start: 2018-11-16. End: 2025-12-31.

What is the historical spending pattern for shipbuilding and repair services by the Department of the Navy?

The Department of the Navy consistently allocates significant portions of its budget to shipbuilding and repair. Historical data reveals multi-billion dollar annual expenditures in this category, driven by the need to maintain a modern and capable fleet. Spending fluctuates based on new construction programs, modernization efforts, and routine maintenance cycles. Analyzing trends over the past decade would show periods of increased investment during major shipbuilding initiatives and periods of steady spending for sustainment. Factors such as geopolitical events, technological advancements, and budget appropriations all influence these patterns. For instance, periods of heightened global tension often correlate with increased shipbuilding budgets to bolster naval capacity. Conversely, budget constraints can lead to deferrals in maintenance or slower acquisition of new vessels.

What are the specific services covered under this $166.5 million contract?

The provided data indicates the contract is for 'Ship Building and Repairing' (NAICS 336611) awarded to Bollinger Mississippi Shipbuilding, LLC. However, the specific services are not detailed. This could encompass a wide range of activities, from routine maintenance and repair of existing naval vessels to more complex structural modifications, upgrades, or even new construction of smaller specialized vessels. Given the long duration (over 2600 days) and substantial value, it is likely to cover a significant scope of work. Without access to the contract's statement of work (SOW), it is impossible to determine the precise nature of the shipbuilding and repair activities, such as the types of vessels involved, the extent of repairs, or if any new construction is included. This lack of specificity is a common challenge in analyzing federal contracts based solely on summary data.

How does the firm-fixed-price contract type impact risk for the government and the contractor?

A firm-fixed-price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor agrees to a set price for the work, regardless of the actual costs incurred. This shifts the primary cost risk to the contractor. If the contractor's expenses exceed the agreed-upon price, their profit margin decreases or they may incur a loss. Conversely, if they manage costs effectively and complete the work for less than the fixed price, their profit increases. For the government, the main benefit is predictability in budgeting. However, the risk for the government is that the contractor may build in a higher contingency into the price to cover potential cost overruns, potentially leading to a higher initial price compared to other contract types. For complex or long-duration projects, the FFP structure can sometimes disincentivize innovation or lead to disputes if unforeseen issues arise that were not adequately addressed in the initial scope.

What is Bollinger Mississippi Shipbuilding, LLC's track record with federal contracts, particularly with the Department of Defense?

Information on Bollinger Mississippi Shipbuilding, LLC's track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data. To assess their performance, one would need to examine their contract history, including past awards, performance reviews (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A thorough review would involve searching federal procurement databases and performance assessment systems. A positive track record with on-time delivery, quality work, and adherence to budget would indicate reliability, while a history of issues might raise concerns. Without this specific data, it's difficult to provide a definitive assessment of their past performance.

Are there any comparable shipbuilding and repair contracts awarded by the Navy that can be used for benchmarking?

Benchmarking this $166.5 million contract requires identifying comparable contracts for shipbuilding and repair services awarded by the Department of the Navy. This would involve searching for contracts with similar scope, vessel types, duration, and complexity. Key metrics for comparison would include the price per vessel, price per repair hour, or price per ton of displacement, depending on the nature of the work. However, finding directly comparable contracts can be challenging due to the specialized nature of naval shipbuilding and repair, unique vessel requirements, and varying contract structures. The sole-source nature of this award further complicates benchmarking, as competitive awards typically offer a clearer indication of market-driven pricing. A comprehensive analysis would necessitate access to a broader database of historical Navy contracts and detailed information on the specific services rendered under each.

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: N0002418R2208

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $166,455,007

Exercised Options: $166,455,007

Current Obligation: $166,455,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline