DoD Awards $39.8M Contract to Vigor Marine for USNS Pecos Overhaul
Contract Overview
Contract Amount: $39,838,158 ($39.8M)
Contractor: Vigor Marine LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-19
End Date: 2023-11-20
Contract Duration: 185 days
Daily Burn Rate: $215.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: N104A1 / PM1 / R. VANCE / FY23 USNS PECOS REGULAR OVERHAUL/ DRY DOCK
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $39.8 million to VIGOR MARINE LLC for work described as: N104A1 / PM1 / R. VANCE / FY23 USNS PECOS REGULAR OVERHAUL/ DRY DOCK Key points: 1. The contract value of $39.8M is significant for ship repair. 2. Vigor Marine LLC secured the award through full and open competition. 3. The firm-fixed-price contract type aims to control costs. 4. This award falls within the Ship Building and Repairing sector.
Value Assessment
Rating: good
The $39.8M award appears reasonable for a regular overhaul and dry dock of a naval vessel. Benchmarking against similar complex ship repair contracts would provide further validation.
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 more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this essential naval maintenance.
Public Impact
Ensures readiness of the USNS Pecos for naval operations. Supports maritime infrastructure and the shipbuilding/repair industry. Provides critical maintenance for a government-owned, contractor-operated vessel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repairs are needed beyond the scope.
- Dependence on a single contractor for a critical maintenance task.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Clear period of performance.
Sector Analysis
This contract is within the shipbuilding and repairing sector, which is vital for maintaining the operational capacity of the U.S. Navy's fleet. Spending in this sector can fluctuate based on fleet age and modernization needs.
Small Business Impact
While Vigor Marine LLC is the prime contractor, the extent of small business subcontracting is not detailed in this award notice. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, indicating established oversight mechanisms. Contract performance will be monitored to ensure adherence to terms and conditions.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep and cost increases.
- Reliance on a single contractor for a critical service.
- Complexity of ship repair can lead to unforeseen issues.
- Ensuring timely completion to maintain fleet readiness.
Tags
ship-building-and-repairing, department-of-defense, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.8 million to VIGOR MARINE LLC. N104A1 / PM1 / R. VANCE / FY23 USNS PECOS REGULAR OVERHAUL/ DRY DOCK
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 $39.8 million.
What is the period of performance?
Start: 2023-05-19. End: 2023-11-20.
What is the historical performance of Vigor Marine LLC on similar naval overhaul contracts?
Assessing Vigor Marine LLC's past performance on comparable contracts is crucial. Reviewing their track record for on-time delivery, adherence to budget, and quality of work on previous naval overhauls will provide insight into their capability and reliability for this specific project. This historical data can help predict potential risks and ensure successful project execution.
How does the benchmarked cost for this overhaul compare to similar vessels or previous overhauls?
Comparing the $39.8M cost to industry benchmarks for similar vessel classes and overhaul scopes is essential for value assessment. Analyzing costs from previous, comparable overhauls of the USNS Pecos or similar T-AKE class ships can reveal if this contract represents a fair and reasonable price. Significant deviations may warrant further investigation into the scope or market conditions.
What are the key performance indicators (KPIs) being used to measure the success of this overhaul contract?
Understanding the specific KPIs for this contract is vital for evaluating its effectiveness. These might include adherence to the dry-docking schedule, completion of all specified repair and maintenance tasks, quality of workmanship, and meeting environmental and safety standards. Tracking these metrics will determine if the contract achieves its intended operational and readiness objectives for the USNS Pecos.
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: N3220523R4211
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: $40,836,720
Exercised Options: $39,838,158
Current Obligation: $39,838,158
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $7,644,614
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-05-19
Current End Date: 2023-11-20
Potential End Date: 2023-11-20 00:00:00
Last Modified: 2024-09-06
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