DoD's $30.1M contract for USNS John Lewis mid-term availability awarded to Vigor Marine LLC

Contract Overview

Contract Amount: $30,141,008 ($30.1M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-02

End Date: 2025-01-18

Contract Duration: 138 days

Daily Burn Rate: $218.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N104A1 / PM1 / B.PAGE / USNS JOHN LEWIS MID-TERM AVAILABILITY

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $30.1 million to VIGOR MARINE LLC for work described as: N104A1 / PM1 / B.PAGE / USNS JOHN LEWIS MID-TERM AVAILABILITY Key points: 1. Contract value represents a significant investment in naval readiness and sustainment. 2. Competition dynamics for this type of specialized maritime service are crucial for cost efficiency. 3. Performance risk is moderate, given the complexity of mid-term availabilities for naval vessels. 4. This contract supports the operational readiness of a key asset in the U.S. Navy fleet. 5. The shipbuilding and repair sector is characterized by high barriers to entry and specialized expertise. 6. Fixed-price contract type aims to control costs, but requires careful scope management.

Value Assessment

Rating: good

The contract value of approximately $30.1 million for a mid-term availability of the USNS John Lewis appears reasonable within the context of complex naval vessel maintenance. Benchmarking against similar availabilities for vessels of this class and size is essential for a definitive value assessment. However, given the specialized nature of the work and the fixed-price structure, the initial award price suggests a degree of confidence in cost estimation by both the contractor and the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of multiple bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: A full and open competition for this contract is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overspending and promoting efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Navy and Military Sealift Command, ensuring the operational readiness of the USNS John Lewis. The services delivered include essential maintenance, repair, and upgrades to extend the vessel's service life and operational capability. The geographic impact is centered around the awardee's facility in Oregon, supporting regional maritime industrial capacity. This contract supports skilled jobs within the maritime repair and shipbuilding sector in Oregon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex repair projects can lead to cost overruns if not managed diligently.
Dependence on specialized labor and facilities in a niche industry can create supply chain vulnerabilities.
Ensuring timely completion is critical for maintaining fleet readiness, and delays could impact operational schedules.

Positive Signals

Award under full and open competition suggests a robust bidding process and potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contract supports a key vessel within the Military Sealift Command, contributing to national security objectives.

Sector Analysis

The shipbuilding and repair sector is a critical component of the defense industrial base, characterized by high capital investment, specialized technical expertise, and stringent quality requirements. This contract falls within the broader category of defense industrial services, supporting the maintenance and sustainment of naval assets. Comparable spending in this sector often involves large, complex projects with long lead times and significant cost implications.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify a small business set-aside. While Vigor Marine LLC is a large business, the contract terms do not preclude subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation in fulfilling this requirement.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers responsible for vessel maintenance and readiness. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful completion. Transparency is generally maintained through contract award databases, though specific performance metrics may be internal.

Related Government Programs

Military Sealift Command Vessel Maintenance
Naval Ship Repair and Modernization
Defense Industrial Base Sustainment
Shipbuilding and Repair Contracts

Risk Flags

Potential for cost growth if scope is not clearly defined.
Risk of schedule delays impacting fleet readiness.
Dependence on specialized labor and facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to VIGOR MARINE LLC. N104A1 / PM1 / B.PAGE / USNS JOHN LEWIS MID-TERM AVAILABILITY

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 $30.1 million.

What is the period of performance?

Start: 2024-09-02. End: 2025-01-18.

What is Vigor Marine LLC's track record with similar naval vessel availabilities?

Vigor Marine LLC has a significant history of performing complex repair and maintenance services for various naval and commercial vessels. Their experience includes dry-docking, hull work, propulsion system overhauls, and systems upgrades. While specific details on past 'mid-term availabilities' for vessels precisely like the USNS John Lewis would require deeper analysis of their contract history, their overall portfolio suggests they possess the necessary infrastructure, certifications, and expertise to undertake such a project. Past performance evaluations from the Navy and other government agencies would provide a more granular view of their reliability, quality of work, and adherence to schedules and budgets on comparable projects.

How does the $30.1 million cost compare to similar mid-term availabilities for vessels of this class?

Benchmarking the $30.1 million cost requires comparing it to historical data for mid-term availabilities of similar vessels, such as other Lewis-class T-AKE ships or comparable logistics support vessels. Factors influencing cost include the scope of work (e.g., specific systems requiring repair or upgrade), the duration of the availability, shipyard labor rates, and material costs. Without access to proprietary data on previous availabilities for the USNS John Lewis or its sister ships, a precise comparison is challenging. However, the fixed-price nature of this contract suggests the Navy believes this amount represents a fair and reasonable cost based on their internal estimates and market research conducted during the solicitation process.

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

Key risks include potential schedule delays due to unforeseen technical issues discovered during the availability, cost overruns if the scope of work expands beyond the initial fixed-price agreement (though change orders would be required), and performance quality issues. Mitigation strategies typically involve detailed pre-award technical evaluations, robust project management by the Navy's contracting officer's representative (COR), clear contract terms defining scope and deliverables, and performance incentives or penalties. The fixed-price structure itself acts as a risk mitigation tool for the government by capping the financial exposure, provided the scope is well-defined and managed.

How effective is the 'full and open competition' process in ensuring value for this type of specialized service?

Full and open competition is generally considered the most effective method for ensuring value in government contracting, as it allows the widest possible pool of qualified contractors to bid. For specialized services like naval vessel maintenance, this means multiple shipyards can compete, driving down prices and encouraging innovation. The effectiveness hinges on the clarity of the solicitation requirements, the fairness of the evaluation criteria, and the actual number and capability of bidders. If only a few highly specialized firms can bid, the competitive pressure might be less intense than in broader markets, but it still provides a structured process for price discovery and selection based on best value.

What is the historical spending pattern for the USNS John Lewis or similar vessels' maintenance?

Historical spending patterns for the USNS John Lewis and its sister ships would reveal the frequency and cost of previous availabilities (e.g., routine maintenance, dry-docking, major overhauls). Analyzing this data helps establish a baseline for expected costs and identify any significant deviations or trends. For example, if previous availabilities were significantly cheaper or more expensive, it could indicate changes in vessel condition, market rates, or the scope of work. Understanding these patterns is crucial for budget forecasting and assessing whether the current $30.1 million award is consistent with past investments or represents a notable shift.

What are the implications of the 'firm fixed price' contract type for cost control and potential changes?

A firm fixed-price (FFP) contract is designed to provide the government with cost certainty. The contractor assumes the risk of cost overruns, and the government is obligated to pay the agreed-upon price unless the scope of work changes. For this mid-term availability, an FFP contract incentivizes Vigor Marine LLC to manage its costs efficiently. However, it also means that any necessary changes or additions to the scope of work (e.g., discovering additional repairs needed) would require formal contract modifications, potentially leading to negotiations on price and schedule adjustments. Effective management of the initial scope definition is paramount to realizing the cost control benefits of an FFP contract.

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: N3220524R4097

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,790,928

Exercised Options: $30,141,008

Current Obligation: $30,141,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline