DoD awards $133.8M contract for Navy surface ship support barge dismantling and disposal

Contract Overview

Contract Amount: $133,766,996 ($133.8M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-09

End Date: 2023-08-21

Contract Duration: 1,168 days

Daily Burn Rate: $114.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DISMANTLEMENT AND DISPOSAL OF NAVY SURFACE SHIP SUPPORT BARGE (SSSB) CURRENTLY LOCATED IN HAMPTON ROADS, VA AREA

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70809

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $133.8 million to APTIM FEDERAL SERVICES, LLC for work described as: DISMANTLEMENT AND DISPOSAL OF NAVY SURFACE SHIP SUPPORT BARGE (SSSB) CURRENTLY LOCATED IN HAMPTON ROADS, VA AREA Key points: 1. Contract awarded to APTIM FEDERAL SERVICES, LLC for dismantling and disposal services. 2. The contract duration spans over 3 years, indicating a significant project. 3. The contract type is a Firm Fixed Price, which sets a clear cost expectation. 4. The award was made under Full and Open Competition, suggesting a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repairing. 6. The contract's value is substantial, reflecting the complexity of naval asset disposal.

Value Assessment

Rating: good

The contract value of approximately $133.8 million for the dismantling and disposal of a Navy surface ship support barge appears reasonable given the scope of work. While direct comparisons are difficult without specific details on the barge's condition and size, similar large-scale maritime asset decommissioning projects can incur significant costs due to environmental regulations, specialized labor, and disposal requirements. The firm fixed-price nature of the contract suggests that the government has a clear understanding of the total cost, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award process generally leads to better price discovery and potentially more favorable terms for the government. This approach aims to ensure that the most capable and cost-effective solution is selected.

Taxpayer Impact: A full and open competition process for this contract helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and encourages innovation among potential bidders.

Public Impact

The primary beneficiaries are the Department of Defense and the Navy, which will have a retired asset safely and compliantly removed. The service delivered is the dismantling and disposal of a Navy surface ship support barge. The geographic impact is centered around the Hampton Roads, VA area, where the barge is currently located. The contract supports specialized labor in the maritime dismantling and disposal sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental hazards are discovered during dismantling.
Ensuring compliance with all environmental regulations throughout the disposal process.
Logistical challenges in transporting and disposing of hazardous materials.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition likely secured a competitive rate.
Contractor's experience in federal services suggests capability.

Sector Analysis

The maritime defense sector involves the maintenance, repair, and disposal of naval vessels and support equipment. This contract falls within the broader shipbuilding and repairing industry (NAICS 336611), which includes services related to the construction, repair, and conversion of ships and boats. The market for specialized dismantling and disposal services for aging naval assets is driven by defense budgets and environmental regulations. Comparable spending benchmarks for such services can vary widely based on the size, type, and condition of the asset being decommissioned.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award to APTIM FEDERAL SERVICES, LLC, a large federal contractor, suggests that the primary focus was on capability and capacity for this complex task. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the firm fixed-price contract type, which places the financial risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of the dismantling process may be proprietary or sensitive.

Related Government Programs

Naval Vessel Decommissioning
Shipbreaking Services
Environmental Remediation Services
Defense Logistics Services
Maritime Asset Disposal

Risk Flags

Environmental Compliance Risk
Logistical Complexity
Potential for Unforeseen Hazards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $133.8 million to APTIM FEDERAL SERVICES, LLC. DISMANTLEMENT AND DISPOSAL OF NAVY SURFACE SHIP SUPPORT BARGE (SSSB) CURRENTLY LOCATED IN HAMPTON ROADS, VA AREA

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $133.8 million.

What is the period of performance?

Start: 2020-06-09. End: 2023-08-21.

What is the track record of APTIM FEDERAL SERVICES, LLC in handling similar large-scale defense dismantling contracts?

APTIM FEDERAL SERVICES, LLC has a significant history of performing complex federal contracts, including those involving environmental services, demolition, and infrastructure support. While specific details on their past performance with naval vessel dismantling are not provided in this data, their extensive experience with the Department of Defense and other federal agencies suggests a strong capability in managing large, technically demanding projects. Their portfolio often includes hazardous material abatement, site remediation, and construction, which are relevant skill sets for barge dismantling. A deeper dive into their contract history, past performance reviews, and any reported issues would provide a more comprehensive understanding of their suitability for this specific task.

How does the $133.8 million cost compare to similar Navy surface ship support barge dismantling projects?

Direct cost comparisons for dismantling and disposal of Navy surface ship support barges are challenging due to the unique nature of each vessel (size, material composition, environmental hazards) and the varying scope of work (e.g., full dismantling vs. partial, disposal methods). However, $133.8 million represents a substantial investment, suggesting a complex or large-scale operation. Projects involving the decommissioning of larger naval vessels or platforms with significant hazardous materials can easily run into tens or hundreds of millions of dollars. Without specific benchmarks for similar barges, it's difficult to definitively state if this cost is high or low, but it aligns with the expected expenditure for significant defense asset disposal.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include unforeseen environmental hazards (e.g., asbestos, PCBs, fuel residues) requiring specialized handling and disposal, potential delays due to logistical challenges or regulatory hurdles, and the possibility of cost overruns if the firm fixed-price contract doesn't adequately account for all eventualities. Mitigation strategies likely involve thorough pre-award site assessments, robust environmental compliance plans, detailed project management by APTIM FEDERAL SERVICES, LLC, and oversight from the DCMA. The firm fixed-price structure itself is a risk mitigation tool for the government, transferring much of the cost overrun risk to the contractor.

What is the expected effectiveness of this contract in achieving the Navy's asset disposal goals?

The effectiveness of this contract hinges on APTIM FEDERAL SERVICES, LLC's ability to execute the dismantling and disposal safely, compliantly, and within the agreed-upon timeframe and budget. Assuming the contractor possesses the necessary expertise and resources, the contract is expected to effectively remove an aging or obsolete asset from the Navy's inventory, freeing up berthing space and eliminating maintenance costs. Successful completion will contribute to the Navy's overall readiness and asset management strategy by ensuring proper disposition of retired equipment.

What are the historical spending patterns for dismantling and disposal of Navy support barges?

Historical spending data for the dismantling and disposal of Navy surface ship support barges is not readily available in the public domain and would likely require detailed analysis of specific decommissioning projects over time. Spending patterns are influenced by factors such as the number of barges retired annually, their condition, the prevailing environmental regulations at the time of disposal, and the competitive landscape for disposal services. It's probable that spending has increased over the years due to stricter environmental standards and the aging of the fleet, necessitating more complex and costly disposal procedures.

What specific environmental considerations are likely involved in dismantling and disposing of a Navy surface ship support barge?

Dismantling and disposing of a Navy surface ship support barge likely involves significant environmental considerations. These can include the management and disposal of residual fuels, oils, and lubricants; identification and removal of hazardous materials such as asbestos, lead paint, and polychlorinated biphenyls (PCBs); proper handling of scrap metals and other recyclable materials; and ensuring that wastewater and debris generated during the process do not contaminate surrounding waters or land. Compliance with EPA and state environmental regulations is paramount throughout the entire lifecycle of the project.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002418R4339

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,766,996

Exercised Options: $133,766,996

Current Obligation: $133,766,996

Actual Outlays: $12,917,417

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $34,475,574

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline