Dod Awards $173.8M for Boat Building to Safe Boats International LLC
Contract Overview
Contract Amount: $173,877,215 ($173.9M)
Contractor: Safe Boats International LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-31
End Date: 2027-12-16
Contract Duration: 2,541 days
Daily Burn Rate: $68.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MSI-DS DS30 CANNONS
Place of Performance
Location: BREMERTON, KITSAP County, WASHINGTON, 98312
Plain-Language Summary
Department of Defense obligated $173.9 million to SAFE BOATS INTERNATIONAL LLC for work described as: MSI-DS DS30 CANNONS Key points: 1. Significant contract value of $173.8 million. 2. Sole-source award to SAFE BOATS INTERNATIONAL LLC. 3. Potential risk due to lack of competition. 4. Boat building sector with long-term duration.
Value Assessment
Rating: questionable
The contract value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar boat building services.
Cost Per Unit: N/A
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.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these boats.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the contract. Limited visibility into the justification for not competing the award. Potential impact on the broader boat building industry if competition is consistently avoided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Definitive contract awarded
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the boat building sector, a niche within the broader manufacturing and defense industries. Benchmarks for similar sole-source contracts are difficult to establish without competitive data.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The justification for this sole-source award and the process followed require scrutiny to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Boat Building
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to lack of price discovery.
- Limited transparency on justification for sole-sourcing.
- Long contract duration increases long-term financial exposure.
Tags
boat-building, department-of-defense, wa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $173.9 million to SAFE BOATS INTERNATIONAL LLC. MSI-DS DS30 CANNONS
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 $173.9 million.
What is the period of performance?
Start: 2020-12-31. End: 2027-12-16.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation from the Department of Defense, the exact reason remains unclear, but it warrants review to ensure it aligns with federal procurement regulations.
What is the risk associated with a sole-source contract of this magnitude?
The primary risk of a sole-source contract of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. It also raises concerns about whether the government is obtaining the best value and whether alternative solutions or suppliers were adequately considered. This can lead to inefficient use of taxpayer funds and may stifle innovation within the industry.
How effective is a sole-source award in meeting the Department of Defense's needs for these boats?
While a sole-source award can be effective in quickly meeting specific needs, especially if the contractor possesses unique expertise or technology, its long-term effectiveness in terms of cost and value is questionable. The lack of competition means there's no external validation of the price or performance against potential alternatives, which could impact overall program effectiveness and budget adherence.
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: N0002421R2200
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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $211,950,635
Exercised Options: $173,877,215
Current Obligation: $173,877,215
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-31
Current End Date: 2027-12-16
Potential End Date: 2027-12-16 00:00:00
Last Modified: 2026-01-07
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