Navy Awards $92.5M Drydocking Contract to Vigor Marine LLC for USS Wayne E Meyer
Contract Overview
Contract Amount: $92,542,104 ($92.5M)
Contractor: Vigor Marine LLC
Awarding Agency: Department of Defense
Start Date: 2019-12-17
End Date: 2021-01-29
Contract Duration: 409 days
Daily Burn Rate: $226.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS WAYNE E MEYER FY20 DRYDOCKING SELECTED RESTRICTED AVAILABILITY (DSRA)
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $92.5 million to VIGOR MARINE LLC for work described as: USS WAYNE E MEYER FY20 DRYDOCKING SELECTED RESTRICTED AVAILABILITY (DSRA) Key points: 1. Contract awarded to Vigor Marine LLC for $92.5M. 2. Full and open competition was utilized. 3. The contract is for drydocking and selected restricted availability. 4. The period of performance spans from December 2019 to January 2021. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $92.5M for a 409-day availability appears reasonable given the scope of drydocking and repair services for a naval vessel. Benchmarking against similar complex ship repair contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple qualified vendors can participate.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing the value of taxpayer funds for essential naval maintenance.
Public Impact
Ensures readiness of a key naval asset, the USS Wayne E Meyer. Supports the maritime industrial base through significant contract awards. Provides critical repair and maintenance services to the U.S. Navy fleet. Contributes to the economic activity in the region where Vigor Marine operates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repair issues arise.
- Dependence on a single contractor for a critical availability period.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition promotes competitive pricing.
- Clear period of performance defined.
Sector Analysis
Shipbuilding and Repair (NAICS 336611) is a critical sector for national defense, involving complex and high-value contracts. Spending benchmarks vary significantly based on vessel type, size, and scope of work.
Small Business Impact
While Vigor Marine LLC is a significant player, the contract's nature and value may limit direct participation by small businesses, though they could potentially act as subcontractors.
Oversight & Accountability
The Department of the Navy's contracting process, including full and open competition, provides a framework for oversight. Post-award monitoring would ensure adherence to contract terms and quality standards.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy (409 days).
- Potential for scope creep during availability.
- Reliance on a single prime contractor.
- Complexity of naval vessel repair.
Tags
ship-building-and-repairing, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.5 million to VIGOR MARINE LLC. USS WAYNE E MEYER FY20 DRYDOCKING SELECTED RESTRICTED AVAILABILITY (DSRA)
Who is the contractor on this award?
The obligated recipient is VIGOR MARINE 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 $92.5 million.
What is the period of performance?
Start: 2019-12-17. End: 2021-01-29.
What is the historical cost performance of Vigor Marine LLC on similar naval contracts?
Analyzing Vigor Marine LLC's past performance on comparable Department of Defense contracts, particularly those involving drydocking and extensive repairs, would provide insight into their cost control capabilities and reliability. This historical data can help assess the likelihood of the current contract staying within budget and meeting performance expectations.
Are there any specific risks associated with the 'selected restricted availability' aspect of this contract?
The 'selected restricted availability' designation suggests that while the competition was full and open, there might have been specific technical requirements or pre-qualification criteria that narrowed the field of eligible bidders. Understanding these restrictions is key to assessing if they unduly limited competition or introduced unique risks not present in standard drydocking.
How does the $92.5M cost compare to the average cost for similar naval vessel availabilities?
Benchmarking this $92.5M contract against the average cost for similar drydocking and repair availabilities for vessels of the USS Wayne E Meyer's class and complexity is crucial. A higher-than-average cost could indicate scope creep, less competitive pricing than anticipated, or unique challenges. Conversely, a lower cost might signal efficient execution or favorable market conditions.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002419R4464
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Carlyle Group Management L.L.C.
Address: 5555 N CHANNEL AVE, PORTLAND, OR, 97217
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: $92,645,922
Exercised Options: $92,542,104
Current Obligation: $92,542,104
Actual Outlays: $34,586,553
Subaward Activity
Number of Subawards: 184
Total Subaward Amount: $38,631,923
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-12-17
Current End Date: 2021-01-29
Potential End Date: 2021-01-29 00:00:00
Last Modified: 2022-02-02
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