DoD Awards $110M Contract for Bahrain Ship Transfer Phase 1 to VSE Corporation
Contract Overview
Contract Amount: $109,615,198 ($109.6M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2021-02-11
End Date: 2024-04-30
Contract Duration: 1,174 days
Daily Burn Rate: $93.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BAHRAIN SHIP TRANSFER PHASE 1 - SHIPYARD AND TOWING SELECTION, FINALIZE WORK PACKAGES AND VARIOUS SUPPORT TASKS
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $109.6 million to VSE CORPORATION for work described as: BAHRAIN SHIP TRANSFER PHASE 1 - SHIPYARD AND TOWING SELECTION, FINALIZE WORK PACKAGES AND VARIOUS SUPPORT TASKS Key points: 1. The contract focuses on shipyard and towing selection, work package finalization, and support tasks for a Bahrain ship transfer. 2. VSE Corporation, the contractor, is a key player in defense logistics and sustainment. 3. The award method was 'Full and Open Competition', suggesting a competitive bidding process. 4. The contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure requires close monitoring to ensure costs remain reasonable. Benchmarking against similar complex maritime support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing, though the specific cost discovery mechanisms for a Cost Plus Fixed Fee contract are crucial.
Taxpayer Impact: Taxpayer funds are being used for critical naval support operations abroad. The competitive award process aims to ensure value, but the cost-plus nature warrants vigilance.
Public Impact
Ensures continued operational readiness for naval assets in the Bahrain region. Supports critical infrastructure and logistics for U.S. Navy operations. Provides employment opportunities within the shipbuilding and repair sector. Contributes to geopolitical stability through sustained military presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Potential for scope creep in 'various support tasks'.
- Geopolitical risks associated with operations in the Middle East.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
- Long-term contract duration suggests sustained need.
Sector Analysis
This contract falls within the Shipbuilding and Repairing sector, a critical component of national defense and maritime logistics. Spending in this sector is often project-specific and influenced by geopolitical needs and fleet modernization efforts.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The contract's duration and complexity necessitate robust oversight to manage costs and ensure performance objectives are met.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for undefined scope in 'various support tasks'.
- Geopolitical risks in the operational area.
- Complexity of international maritime operations.
- Reliance on a single prime contractor (VSE Corporation).
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.6 million to VSE CORPORATION. BAHRAIN SHIP TRANSFER PHASE 1 - SHIPYARD AND TOWING SELECTION, FINALIZE WORK PACKAGES AND VARIOUS SUPPORT TASKS
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $109.6 million.
What is the period of performance?
Start: 2021-02-11. End: 2024-04-30.
What specific metrics are used to assess the 'fixed fee' component of this Cost Plus Fixed Fee contract to ensure it remains fair and reasonable?
The fixed fee in a CPFF contract is typically negotiated based on the estimated cost of the work and the contractor's expected profit. Metrics for fairness often include comparison to similar contracts, the complexity and risk involved, and the contractor's historical performance. The government's contracting officer is responsible for ensuring this fee is reasonable at the time of award and throughout the contract lifecycle.
How does the 'Ship Building and Repairing' sector benchmark against other defense procurement categories in terms of cost efficiency and risk?
The shipbuilding and repair sector is generally considered high-cost and high-risk due to the complexity of projects, long lead times, specialized labor, and material requirements. Benchmarking against other defense procurement categories like IT or services often shows higher per-unit costs and longer durations. Risks include technological obsolescence, environmental regulations, and the volatile nature of global supply chains.
What are the primary mechanisms in place to ensure the effectiveness of the 'various support tasks' beyond shipyard and towing, given their potentially broad scope?
Effectiveness for 'various support tasks' is typically ensured through detailed performance work statements (PWS), clearly defined deliverables, key performance indicators (KPIs), and regular progress reviews. The contracting officer's representative (COR) plays a crucial role in monitoring performance and ensuring tasks align with the overall mission objectives. Milestone payments and acceptance criteria also drive effectiveness.
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: N0002410R4204
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6348 WALKER LANE, ALEXANDRIA, VA, 22310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,120,941
Exercised Options: $111,120,941
Current Obligation: $109,615,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002411D4229
IDV Type: IDC
Timeline
Start Date: 2021-02-11
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2024-07-19
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