DoD's $26.3M contract for USNS Guadalupe maintenance awarded to Vigor Marine LLC

Contract Overview

Contract Amount: $26,269,175 ($26.3M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2020-04-24

End Date: 2020-08-14

Contract Duration: 112 days

Daily Burn Rate: $234.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CARTER, N104-A1 PM1 USNS GUADALUPE (T-AO 200) FY20 ROH/DD

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to VIGOR MARINE LLC for work described as: CARTER, N104-A1 PM1 USNS GUADALUPE (T-AO 200) FY20 ROH/DD Key points: 1. Contract value represents a significant investment in naval readiness and vessel upkeep. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide predictability. 4. Short performance duration of 112 days indicates a focused scope of work. 5. The contract falls within the broader shipbuilding and repairing sector, crucial for national defense. 6. Vessel maintenance is a recurring need, highlighting ongoing operational demands.

Value Assessment

Rating: good

The contract value of approximately $26.3 million for the FY20 ROH/DD of the USNS GUADALUPE (T-AO 200) appears reasonable given the scope of major ship repair and modernization. Benchmarking against similar naval vessel maintenance contracts of this complexity suggests that the pricing is within expected ranges. The firm fixed-price structure further supports cost control, indicating that the government has secured a defined cost for the services rendered, which is a positive indicator of value for money.

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 presence of multiple bidders, though the exact number is not specified in the provided data, generally leads to more competitive pricing and a wider range of technical solutions. This level of competition is ideal for ensuring the government receives the best possible value and that taxpayer dollars are used efficiently.

Taxpayer Impact: Full and open competition maximizes the chances of securing the most cost-effective solution for taxpayers, as multiple companies vie to win the contract by offering competitive prices and superior technical proposals.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, ensuring the operational readiness of a critical fleet support vessel. The services delivered include scheduled overhaul and dry-docking, essential for maintaining the structural integrity and operational capabilities of the USNS GUADALUPE. The geographic impact is centered around the contractor's facility in Oregon, supporting regional economic activity and employment in the maritime industry. Workforce implications include skilled labor in shipbuilding, repair, and maritime trades at Vigor Marine LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the overhaul, despite the fixed-price nature.
Dependence on a single contractor for a critical maintenance task could pose a risk if performance issues emerge.
The specific details of the 'ROH/DD' scope are not fully elaborated, leaving room for potential scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Vigor Marine LLC, is an established entity in the shipbuilding and repair sector.
The contract duration is clearly defined, allowing for focused project management.

Sector Analysis

The shipbuilding and repairing sector is a vital component of the U.S. industrial base, particularly for national defense. This contract falls under NAICS code 336611, which encompasses establishments primarily engaged in building and repairing ships and boats. Spending in this sector is often characterized by large, complex projects with long lead times and significant capital investment. Comparable spending benchmarks would involve other major overhauls and repairs of naval vessels, where costs can range from tens to hundreds of millions of dollars depending on the vessel class and scope of work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Vigor Marine LLC, may engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services required for the overhaul and dry-docking.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officer and program management personnel responsible for vessel maintenance and readiness. Accountability measures are embedded within the firm fixed-price contract terms, which stipulate deliverables and performance standards. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction is not detailed here, the DoD IG typically oversees major defense contracts for waste, fraud, and abuse.

Related Government Programs

Naval Vessel Maintenance Contracts
Shipbuilding and Repair Services
Fleet Readiness Programs
Department of Defense Procurement
Maritime Industry Support

Risk Flags

Potential for unforeseen repair needs impacting cost and schedule.
Contractor performance risk on complex overhaul projects.
Dependence on specific maritime repair facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to VIGOR MARINE LLC. CARTER, N104-A1 PM1 USNS GUADALUPE (T-AO 200) FY20 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 $26.3 million.

What is the period of performance?

Start: 2020-04-24. End: 2020-08-14.

What is the track record of Vigor Marine LLC in performing similar naval vessel overhaul and dry-docking contracts?

Vigor Marine LLC has a significant track record in the maritime industry, specializing in shipbuilding, conversion, and repair. They have previously undertaken contracts for various U.S. government agencies, including the Navy, Coast Guard, and Military Sealift Command. Their experience often involves complex projects such as major overhauls, conversions, and new construction. Specific to naval vessels, they have performed work on a range of ship classes, demonstrating capability in handling the technical requirements and stringent quality standards associated with military shipbuilding and repair. Reviewing their past performance on similar contracts, particularly those involving vessels of the T-AO 200 class or similar auxiliary ships, would provide further insight into their reliability, quality of work, and ability to meet deadlines and budget constraints.

How does the awarded amount of $26.3 million compare to the estimated cost or budget for this specific overhaul and dry-docking?

The provided data indicates the awarded amount is $26,269,175.26. Without access to the government's initial cost estimates or budget allocation for this specific FY20 ROH/DD of the USNS GUADALUPE (T-AO 200), a direct comparison is challenging. However, the fact that it was awarded under 'FULL AND OPEN COMPETITION' suggests that the bidding process likely resulted in a price that was deemed competitive and acceptable by the contracting authority. If the bids received were significantly lower than the government's estimate, it could indicate efficient market pricing or potentially underestimated government cost projections. Conversely, if the bids were close to or exceeded the estimate, it might suggest market conditions or the complexity of the work aligned with the government's expectations. Further analysis would require access to the government's independent cost estimate.

What are the primary risks associated with this firm fixed-price contract for vessel maintenance?

While firm fixed-price contracts are designed to provide cost certainty, they do carry specific risks, particularly for complex projects like ship overhauls. The primary risk for the contractor is the potential for cost overruns if unforeseen issues arise during the dry-docking and overhaul process. For example, discovering significant structural damage, outdated systems requiring unexpected upgrades, or material shortages could lead to expenses exceeding the fixed price. For the government, the risk is that the contractor might cut corners on quality or scope to maintain profitability if costs escalate, potentially impacting the vessel's long-term reliability or safety. Effective oversight and clear contract specifications are crucial to mitigate these risks.

What is the historical spending pattern for the USNS GUADALUPE (T-AO 200) for maintenance and repair?

The provided data snippet focuses on a single contract for FY20 ROH/DD. To understand the historical spending pattern for the USNS GUADALUPE (T-AO 200), a broader dataset encompassing previous years' maintenance and repair contracts would be necessary. This would include tracking the frequency and cost of similar overhauls, routine maintenance, and any emergent repair work. Analyzing this historical data would reveal trends in spending, identify potential increases or decreases in maintenance needs over the vessel's lifecycle, and help assess whether the current contract's value aligns with past expenditures or reflects changes in operational tempo, vessel age, or repair requirements. Without this broader context, it's difficult to establish a definitive historical spending pattern.

How does the competition level (full and open) for this contract potentially influence the final price paid by the government?

A 'FULL AND OPEN COMPETITION' award, as indicated for this contract, generally has a positive influence on the final price paid by the government. This procurement approach allows any responsible source to submit an offer, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as bidders strive to offer the most attractive combination of cost and technical merit to win the award. The presence of multiple bidders increases the likelihood that the government will receive proposals reflecting fair market value. Furthermore, it provides the government with a broader range of options and reduces the risk of being locked into a single supplier's pricing structure, ultimately benefiting taxpayer interests through potentially lower costs and better value.

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: N3220520R4005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Carlyle Group L P (UEI: 175406842)

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: $26,695,175

Exercised Options: $26,269,175

Current Obligation: $26,269,175

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline