DoD awards $32.3M for USNS John Lewis work, with Vigor Marine LLC securing the contract

Contract Overview

Contract Amount: $32,317,960 ($32.3M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2024-05-15

Contract Duration: 257 days

Daily Burn Rate: $125.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JONES N1041A PM1 CATEGORY 'A" WORK ITEM & AGR/ODC FUNDING FOR USNS JOHN LEWIS PSA

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to VIGOR MARINE LLC for work described as: JONES N1041A PM1 CATEGORY 'A" WORK ITEM & AGR/ODC FUNDING FOR USNS JOHN LEWIS PSA Key points: 1. Contract value appears reasonable given the scope of shipbuilding and repair work. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of 257 days indicates a focused, project-specific engagement. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award falls within the broader shipbuilding and repair sector for the Navy. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $32.3 million for shipbuilding and repair services for the USNS John Lewis is within a typical range for such specialized work. Benchmarking against similar naval vessel maintenance or construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive.

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 data does not specify the number of bidders, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price. This approach generally leads to a wider range of proposals and innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging efficiency among contractors, ultimately leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring the operational readiness of the USNS John Lewis. Services delivered include shipbuilding and repair work, crucial for maintaining naval assets. The geographic impact is likely centered around the contractor's facilities in Oregon. Workforce implications include employment opportunities for skilled labor in the shipbuilding and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, though mitigated by fixed-price.
Dependence on a single contractor for critical repair and maintenance services.
Market concentration in shipbuilding and repair could limit future competition.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type transfers risk to the contractor.
Contract supports a specific naval vessel, contributing to national defense readiness.

Sector Analysis

The shipbuilding and repair sector is a critical component of the defense industrial base, supporting naval fleet maintenance and construction. This contract falls within the broader North American Industry Classification System (NAICS) code 336611 (Ship Building and Repairing). Spending in this sector is often characterized by large, complex projects with long lead times and significant capital investment. Comparable spending benchmarks would involve analyzing other contracts for naval vessel construction, repair, and maintenance awarded by the Department of Defense.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no specific subcontracting requirements for small businesses were mandated in this award. This suggests the primary contractor, Vigor Marine LLC, is likely a large business capable of handling the full scope of work. The absence of set-asides or explicit subcontracting goals may limit direct opportunities for small businesses on this specific contract, though Vigor Marine may engage them as part of its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under 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 specified work within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Production
Ship Maintenance and Repair
Defense Procurement
Vessel Construction Contracts

Risk Flags

Potential for schedule slippage
Contract performance risk
Market concentration in shipbuilding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to VIGOR MARINE LLC. JONES N1041A PM1 CATEGORY 'A" WORK ITEM & AGR/ODC FUNDING FOR USNS JOHN LEWIS 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 $32.3 million.

What is the period of performance?

Start: 2023-09-01. End: 2024-05-15.

What is Vigor Marine LLC's track record with similar naval shipbuilding and repair contracts?

Vigor Marine LLC has a significant history in shipbuilding and repair, particularly with government contracts. They have been involved in constructing and repairing various vessels for the U.S. Navy and other maritime agencies. Their experience often includes complex projects requiring specialized skills and adherence to stringent quality and safety standards. Analyzing their past performance on contracts of similar size and scope, including any past performance issues or commendations, would provide further insight into their capability to execute this specific award successfully. Publicly available contract databases and contractor performance assessment reporting (CPARs) can offer details on their historical performance.

How does the awarded amount of $32.3 million compare to the estimated cost or market rates for similar vessel repair work?

Without specific details on the scope of work beyond 'CATEGORY 'A" WORK ITEM & AGR/ODC FUNDING FOR USNS JOHN LEWIS PSA', a precise comparison is challenging. However, $32.3 million for significant repair or modification work on a naval vessel is within a plausible range, considering the complexity, specialized labor, materials, and overhead involved in maritime repair. To benchmark effectively, one would need to compare this contract's value against recent awards for similar classes of ships, the extent of work (e.g., dry-docking, major system overhauls, hull repairs), and prevailing labor and material costs in the region where the work is performed. The firm fixed-price nature suggests the government sought a defined cost, but the initial bid competitiveness is key.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks for this contract include potential schedule delays due to unforeseen technical issues during repair or modification, cost overruns (though mitigated by the firm fixed-price structure), and performance quality. Given it's a firm fixed-price contract, the risk of cost overruns is largely transferred to Vigor Marine LLC. Schedule delays remain a concern, as complex repairs can encounter unexpected challenges. Risk management would involve detailed project planning, robust quality assurance processes by both the contractor and the Navy's quality assurance representatives, and clear communication channels. The contract's duration (257 days) also suggests a defined scope, which helps in managing risks.

What is the expected effectiveness of this contract in ensuring the operational readiness of the USNS John Lewis?

The effectiveness of this contract hinges on the successful completion of the specified work items ('CATEGORY 'A" WORK ITEM') within the agreed timeframe and budget. Assuming the work addresses critical maintenance, repair, or upgrade needs for the USNS John Lewis, its completion should directly contribute to the vessel's operational readiness. The USNS John Lewis is part of the John Lewis-class replenishment oilers, vital for supporting naval fleet operations. Therefore, timely and quality execution of this contract is crucial for maintaining the logistical capabilities of the U.S. Navy.

How does historical spending on shipbuilding and repair for the USNS John Lewis or similar vessels compare to this award?

Historical spending data for the USNS John Lewis and its sister ships would provide context for this $32.3 million award. Replenishment oilers, like the John Lewis class, require ongoing maintenance and periodic major repairs throughout their service life. The frequency and cost of these interventions can vary based on operational tempo, environmental factors, and the specific systems onboard. Analyzing past repair contracts for this vessel or comparable ships within the Military Sealift Command (MSC) inventory would reveal trends in spending, identify common repair needs, and help assess whether this current award is consistent with historical investment patterns for maintaining such assets.

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: N3220523R4212

Offers Received: 2

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: $33,273,736

Exercised Options: $32,317,960

Current Obligation: $32,317,960

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $7,989,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline