Navy Awards $33.4M Contract for T. Hale Usns Miguel Keith (tesb 5) PSA to Vigor Marine LLC

Contract Overview

Contract Amount: $33,382,018 ($33.4M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-05

End Date: 2020-12-20

Contract Duration: 198 days

Daily Burn Rate: $168.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N104A2 PM3 T. HALE USNS MIGUEL KEITH (TESB 5) PSA

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to VIGOR MARINE LLC for work described as: N104A2 PM3 T. HALE USNS MIGUEL KEITH (TESB 5) PSA Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. The duration of 198 days suggests a focused scope of work for the vessel's service life. 4. The award to VIGOR MARINE LLC, a single entity, implies a specific capability was sought. 5. The contract falls under Ship Building and Repairing, a critical sector for naval readiness.

Value Assessment

Rating: fair

The contract value of $33.4 million for the T. HALE USNS MIGUEL KEITH (TESB 5) PSA appears to be a specific allocation for a defined service. Benchmarking against similar vessel support contracts would be necessary for a comprehensive value assessment. Without comparative data on the scope of work and market rates for similar services, it is difficult to definitively assess if this represents excellent or questionable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offering. The open competition suggests that the Navy sought to leverage market forces to obtain competitive pricing and technical solutions.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service quality that can arise from a competitive bidding environment.

Public Impact

The primary beneficiary is the U.S. Navy, which receives essential services for the T. HALE USNS MIGUEL KEITH (TESB 5). The services delivered likely involve maintenance, repair, or modification of the vessel to ensure operational readiness. The geographic impact is centered around the vessel's operational area and the contractor's facilities. The contract supports the maritime defense industrial base, potentially involving skilled labor in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to assess the full value proposition.
The firm-fixed-price nature, while providing cost certainty, could lead to contractor profit if costs are lower than anticipated.
Limited information on the number of bidders restricts a deeper analysis of competitive intensity.

Positive Signals

Awarded through full and open competition, indicating a commitment to market-based pricing.
Firm-fixed-price contract provides cost predictability for the government.
The contract supports a specific, named vessel, suggesting a targeted and necessary acquisition.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense, involving specialized facilities and skilled labor. Contracts in this area can range from new construction to extensive overhauls and maintenance. The market is often characterized by a limited number of large, capable firms due to the significant capital investment and technical expertise required. This contract for a specific vessel service likely fits within the broader category of fleet readiness and sustainment spending.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While VIGOR MARINE LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further investigation into subcontracting goals and actual performance would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports may not be publicly available.

Related Government Programs

Naval Vessel Repair Contracts
Shipbuilding and Repair Services
Defense Logistics Agency Contracts
Maritime Administration Contracts

Risk Flags

Potential for scope creep if unforeseen issues arise during vessel availability.
Reliance on specific contractor capabilities may limit future competition.
Limited public information on detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to VIGOR MARINE LLC. N104A2 PM3 T. HALE USNS MIGUEL KEITH (TESB 5) PSA

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 $33.4 million.

What is the period of performance?

Start: 2020-06-05. End: 2020-12-20.

What is the specific scope of work covered by this contract for the T. HALE USNS MIGUEL KEITH (TESB 5) PSA?

The provided data abbreviates the contract description as 'N104A2 PM3 T. HALE USNS MIGUEL KEITH (TESB 5) PSA'. The 'PSA' likely refers to a 'Program Support Activity' or 'Post-Shakedown Availability', which are periods of maintenance, repair, and modernization for naval vessels after initial deployment or construction. The specific tasks would encompass a range of technical services, potentially including hull maintenance, system diagnostics and repair, equipment upgrades, and habitability improvements, all aimed at ensuring the vessel's operational readiness and extending its service life. A detailed statement of work (SOW) would outline the precise requirements, deliverables, and performance standards.

How does the $33.4 million award compare to historical spending on similar vessel support contracts by the Department of the Navy?

To compare this $33.4 million award, one would need to analyze historical contract data for similar vessel classes (e.g., T-AKE, T-ESB) and similar types of availabilities (e.g., PSA, Post-Shakedown Availability, Major Maintenance Availability). Factors such as the vessel's age, size, complexity of systems, and the specific scope of work defined in the Statement of Work are crucial for a meaningful comparison. Without access to a comprehensive database of past contracts and their detailed scopes, a direct benchmark is challenging. However, for a vessel of this type and a comprehensive availability, $33.4 million could be within a typical range, though potentially on the higher end if extensive modernization is included.

What are the key performance indicators (KPIs) used to assess the success of this contract?

Key performance indicators for a contract like this would likely focus on schedule adherence, cost control (though less critical for firm-fixed-price unless there are change orders), quality of work, and overall vessel readiness post-availability. Specific KPIs might include: completion of all required maintenance and repair tasks within the 198-day period; adherence to technical specifications and quality standards during repairs; successful completion of sea trials and system testing post-availability; and minimal or no significant deficiencies identified during final inspections. The ultimate measure of success is the vessel's return to operational status meeting all performance requirements.

What is VIGOR MARINE LLC's track record with the Department of the Navy for similar services?

VIGOR MARINE LLC has a history of performing contracts with the Department of the Navy, particularly in the areas of ship repair, maintenance, and conversion. Analyzing their past performance on similar vessel types and availabilities would provide insight into their capabilities, reliability, and adherence to contract terms. This would involve reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. A strong track record with the Navy suggests a higher likelihood of successful contract execution for this award.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include unforeseen technical challenges discovered during the availability, which could lead to scope creep and cost overruns if not managed properly through contract modifications. Schedule delays due to supply chain issues or labor shortages are also a risk. Mitigation strategies typically involve robust project management by both the contractor and the government, clear communication channels, a well-defined Statement of Work, and contingency planning. The firm-fixed-price nature incentivizes the contractor to manage costs, while the government's oversight ensures quality and adherence to the schedule. The relatively short duration (198 days) may also limit the window for significant unforeseen issues to derail the project.

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: N3220520R4037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

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: $33,566,493

Exercised Options: $33,382,019

Current Obligation: $33,382,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline