Navy awards $48M for USNS GUADALUPE overhaul, Vigor Marine LLC to perform work

Contract Overview

Contract Amount: $48,066,011 ($48.1M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-26

End Date: 2026-02-01

Contract Duration: 159 days

Daily Burn Rate: $302.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS GUADALUPE FISCAL YEAR 2025 REGULAR OVERHAUL AND DRY-DOCKING AVAILABILITY

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $48.1 million to VIGOR MARINE LLC for work described as: USNS GUADALUPE FISCAL YEAR 2025 REGULAR OVERHAUL AND DRY-DOCKING AVAILABILITY Key points: 1. The contract value represents a significant investment in maintaining naval readiness. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The firm-fixed-price structure shifts cost risk to the contractor, incentivizing efficient execution. 4. This availability is crucial for ensuring the operational readiness of the USNS GUADALUPE. 5. The contract duration of 159 days indicates a substantial scope of work for the overhaul. 6. The North American Industry Classification System (NAICS) code 336611 points to specialized shipbuilding and repair services.

Value Assessment

Rating: good

The contract value of approximately $48 million for a regular overhaul and dry-docking of the USNS GUADALUPE appears reasonable given the scope of work. While direct comparisons are difficult without specific details on the vessel's condition and the exact services required, major ship overhauls are complex and costly. The firm-fixed-price contract type suggests that the government has a clear understanding of the expected costs, and the contractor bears the risk of cost overruns. Benchmarking against similar naval vessel overhauls would provide a more precise value assessment, but the amount is within the expected range for such a critical maintenance task.

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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly suggests that the Navy sought the best value from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring that the government receives the most advantageous pricing.

Public Impact

The primary beneficiary is the U.S. Navy, which will have a fully operational USNS GUADALUPE ready for its missions. The services delivered include a regular overhaul and dry-docking, encompassing essential maintenance and repair work. The geographic impact is likely concentrated around the contractor's facility in Oregon, where the overhaul will take place. This contract supports skilled labor within the shipbuilding and repair industry, particularly in the Pacific Northwest.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting naval operational readiness if the overhaul is not completed on time.
Risk of unforeseen technical issues arising during the overhaul that could increase costs or extend the timeline.
Dependence on a single contractor, Vigor Marine LLC, for the successful execution of this critical maintenance.

Positive Signals

The firm-fixed-price contract incentivizes the contractor to complete the work efficiently and within budget.
Awarding to a single, presumably experienced, contractor can streamline project management and execution.
The full and open competition process suggests a thorough vetting of potential contractors and their capabilities.

Sector Analysis

The shipbuilding and repairing industry (NAICS 336611) is a specialized sector focused on the construction, repair, and conversion of ships and marine vessels. This contract falls within the defense industrial base, where government contracts are crucial for maintaining fleet readiness and supporting national security objectives. The market for naval ship repair is competitive, with a limited number of highly specialized firms capable of undertaking complex overhauls and dry-docking operations. Spending in this sector is often driven by fleet modernization, maintenance schedules, and geopolitical demands.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Vigor Marine LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized components or services. The extent of small business subcontracting will depend on Vigor Marine's own supply chain and subcontracting plans, which are not detailed in the provided data. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Accountability measures are embedded in the firm-fixed-price structure, which holds the contractor responsible for delivering the specified services within the agreed-upon price. Transparency is generally maintained through contract award announcements and reporting requirements, though specific details of the oversight process and Inspector General jurisdiction would require further investigation into the contract's terms and conditions.

Related Government Programs

Naval Vessel Maintenance Contracts
Ship Repair and Overhaul Services
Defense Logistics Agency Contracts
Military Sealift Command Vessel Support

Risk Flags

Potential for cost overruns if unforeseen issues arise during overhaul.
Risk of schedule delays impacting operational readiness.
Dependence on contractor's technical expertise and capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.1 million to VIGOR MARINE LLC. USNS GUADALUPE FISCAL YEAR 2025 REGULAR OVERHAUL AND DRY-DOCKING 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 $48.1 million.

What is the period of performance?

Start: 2025-08-26. End: 2026-02-01.

What is the track record of Vigor Marine LLC in performing similar naval vessel overhauls?

Vigor Marine LLC has a history of performing complex marine repair and overhaul services for various clients, including the U.S. Navy. Their experience typically includes dry-docking, structural repairs, propulsion system maintenance, and habitability upgrades. Assessing their specific track record for similar vessel classes and overhaul scopes would involve reviewing past performance evaluations and contract histories. A review of their past performance on definitive contracts and their ability to meet schedule and budget requirements on previous Navy projects would provide insight into their reliability for this specific USNS GUADALUPE overhaul. Their capacity to handle the scale and technical demands of this $48 million contract is a key factor in evaluating their suitability.

How does the awarded amount compare to historical spending on similar USNS GUADALUPE maintenance or overhauls?

To accurately compare the $48 million award for the USNS GUADALUPE's FY2025 overhaul, historical spending data for its previous maintenance availabilities would be necessary. Factors such as inflation, the scope of work (e.g., routine vs. major overhaul), and the specific condition of the vessel at the time of each maintenance period significantly influence costs. Without access to prior contract values for the USNS GUADALUPE or comparable vessels within the Military Sealift Command (MSC) fleet, a precise historical benchmark is not feasible. However, major overhauls for vessels of this size and type typically represent substantial investments, and the current award should be evaluated in the context of the specific work required and prevailing market rates for shipyard services.

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

The primary risk for the Navy with a firm-fixed-price (FFP) contract is that the contractor, Vigor Marine LLC, may cut corners on quality or scope to maximize profit if unforeseen issues arise or if their initial cost estimates were too low. While FFP shifts cost risk to the contractor, it can also lead to disputes if the contractor claims unforeseen conditions necessitate additional funding or schedule extensions, potentially leading to costly litigation. Another risk is that the contractor might not have the necessary expertise or resources to handle unexpected complexities, leading to delays that impact the vessel's operational readiness. The Navy's robust oversight and inspection processes are critical to mitigating these risks.

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

The 'full and open competition' process is generally effective in ensuring value for specialized repair contracts like this overhaul, as it allows a wider pool of qualified contractors to bid. This broad competition typically drives down prices and encourages innovation as companies vie for the award. For complex services such as ship repair, where technical expertise and specialized facilities are paramount, this process helps identify the contractor offering the best combination of technical capability and price. However, the effectiveness is contingent on the clarity of the solicitation requirements and the government's ability to accurately evaluate the technical proposals alongside the price. If the solicitation is poorly defined, it could lead to bids that do not fully meet the Navy's needs, or if the evaluation criteria are not well-balanced, the lowest price might not represent the best overall value.

What are the potential implications of the contract duration (159 days) on naval operational readiness?

A contract duration of 159 days for the overhaul and dry-docking of the USNS GUADALUPE signifies a significant period where the vessel will be out of service. This extended downtime directly impacts naval operational readiness, as the ship cannot perform its assigned duties during this period. The Navy must strategically schedule such availabilities to minimize disruption to fleet operations and mission requirements. Delays in the completion of this overhaul could have cascading effects, potentially impacting deployment schedules or the availability of logistical support. Therefore, adherence to the 159-day timeline is critical for maintaining the readiness and operational tempo of the relevant naval components.

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: N3220525R2148

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

Address: 5555 N CHANNEL AVE BLDG 71, 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: $48,713,996

Exercised Options: $48,066,011

Current Obligation: $48,066,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline