DoD's $26.8M FY19 Ship Repair Contract Awarded to Vigor Marine LLC Under Full and Open Competition

Contract Overview

Contract Amount: $26,881,938 ($26.9M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-02

End Date: 2019-09-21

Contract Duration: 172 days

Daily Burn Rate: $156.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N104/PM1; M. KRAUZE; USNS YUKON FY19 ROH/DD

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to VIGOR MARINE LLC for work described as: N104/PM1; M. KRAUZE; USNS YUKON FY19 ROH/DD Key points: 1. Contract awarded for ship repair services to USNS YUKON. 2. Vigor Marine LLC secured the contract through full and open competition. 3. The contract value is $26.8 million. 4. This falls under the Ship Building and Repairing sector.

Value Assessment

Rating: good

The contract value of $26.8 million for ship repair services appears reasonable given the scope of work. Benchmarking against similar large-scale vessel maintenance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: Full and open competition likely resulted in a fair price, maximizing taxpayer value by leveraging market forces.

Public Impact

Ensures operational readiness of naval assets through essential maintenance. Supports the maritime industrial base and associated jobs. Provides critical repair services for a significant naval vessel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Awarded to a single contractor for a specific vessel.

Sector Analysis

The Ship Building and Repairing sector is vital for maintaining the U.S. Navy's fleet. Spending in this area is subject to fluctuations based on fleet age, operational tempo, and modernization efforts.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.

Oversight & Accountability

The use of a definitive contract with a fixed price suggests clear terms and accountability. Oversight would focus on contract performance, adherence to specifications, and timely delivery of services.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract awarded to a single entity.
No small business award indicated.
Potential for unforeseen issues in major ship repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to VIGOR MARINE LLC. N104/PM1; M. KRAUZE; USNS YUKON FY19 ROH/DD

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 $26.9 million.

What is the period of performance?

Start: 2019-04-02. End: 2019-09-21.

What was the specific scope of work for the FY19 ROH/DD on the USNS YUKON?

The specific scope of work for the FY19 ROH/DD (Repair and Overhaul/Dry Docking) on the USNS YUKON would detail the required maintenance, repairs, and inspections. This typically includes hull maintenance, machinery overhauls, system upgrades, and safety certifications to ensure the vessel's full operational capability and compliance with maritime regulations.

What are the potential risks associated with a single definitive contract for major ship repair?

Risks with a single definitive contract for major ship repair include potential cost overruns if unforeseen issues arise, contractor performance issues impacting timelines, and limited recourse if the contractor fails to meet expectations. The fixed-price nature mitigates some cost risk for the government, but scope creep or quality deficiencies remain concerns.

How effectively does full and open competition ensure value for money in ship repair contracts?

Full and open competition generally ensures value for money by fostering a competitive environment where multiple qualified contractors submit bids. This drives down prices and encourages innovation. However, the effectiveness depends on the complexity of the requirement, the number of capable bidders, and the clarity of the solicitation to prevent misunderstandings and ensure fair evaluation.

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: N3220519R4012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

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: $27,174,843

Exercised Options: $26,881,938

Current Obligation: $26,881,938

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline