Navy awards $18.8M contract for USNS GRASP overhaul, with JAG Alaska Inc. securing the bid

Contract Overview

Contract Amount: $18,822,977 ($18.8M)

Contractor: JAG Alaska Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-29

End Date: 2025-06-20

Contract Duration: 173 days

Daily Burn Rate: $108.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS GRASP REGULAR OVERHAUL DRY DOCKING FISCAL YEAR 2025

Place of Performance

Location: SEWARD, KENAI PENINSULA County, ALASKA, 99664

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to JAG ALASKA INC. for work described as: USNS GRASP REGULAR OVERHAUL DRY DOCKING FISCAL YEAR 2025 Key points: 1. The contract value represents a significant investment in maintaining naval readiness. 2. Competition dynamics for this specialized repair work are crucial for ensuring fair pricing. 3. Performance risks are mitigated by the firm-fixed-price contract type. 4. The duration of the overhaul is a key factor in assessing operational impact. 5. This contract falls within the broader shipbuilding and repairing sector, vital for national defense. 6. The award to JAG Alaska Inc. highlights the role of established maritime service providers.

Value Assessment

Rating: good

The awarded amount of $18.8 million for the USNS GRASP overhaul appears reasonable given the scope of work, which includes dry docking and regular repairs. Benchmarking against similar naval vessel overhauls suggests that costs can vary significantly based on the vessel's class, age, and the complexity of required maintenance. While specific comparable contract data is not provided, the firm-fixed-price nature of this award indicates a defined cost ceiling, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific criteria or exclusions were applied, potentially narrowing the field to qualified bidders. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such competitive solicitations. A robust competition level typically leads to better price discovery and more favorable terms for the contracting agency.

Taxpayer Impact: A full and open competition, even with exclusions, aims to leverage market forces to secure the best value for taxpayer funds. This process helps ensure that the awarded price reflects a competitive market rate for the specialized services required.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of the USNS GRASP. The services delivered include essential maintenance, repair, and dry docking to extend the vessel's service life. The geographic impact is centered in Alaska, where the contractor JAG Alaska Inc. is based and where the work will likely be performed. The contract supports skilled labor within the maritime repair and shipbuilding industry in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting naval operational timelines.
Risk of unforeseen repair requirements escalating costs beyond the fixed price, though mitigated by contract type.
Dependence on a single contractor for a critical maintenance task.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor with likely relevant experience.
Defined period of performance with clear start and end dates.

Sector Analysis

The shipbuilding and repairing sector is a critical component of the defense industrial base, supporting both naval and commercial fleets. This contract falls under NAICS code 336611, which encompasses establishments primarily engaged in building and repairing ships and other marine vessels. Spending in this sector is often driven by military readiness requirements, vessel modernization programs, and the need to maintain aging fleets. Comparable spending benchmarks would typically involve analyzing the costs of similar overhauls for other vessels within the Navy's Military Sealift Command or other government agencies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the overall competition. While there is no direct small business set-aside, the prime contractor, JAG Alaska Inc., may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem within the maritime industry.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy. Accountability measures are embedded within the contract terms, including the firm-fixed-price structure and the defined period of performance. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract execution.

Related Government Programs

Navy Ship Maintenance Contracts
Military Sealift Command Vessel Overhauls
Shipbuilding and Repair Services
Defense Contract Awards

Risk Flags

Potential for schedule slippage
Unforeseen repair requirements
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to JAG ALASKA INC.. USNS GRASP REGULAR OVERHAUL DRY DOCKING FISCAL YEAR 2025

Who is the contractor on this award?

The obligated recipient is JAG ALASKA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2024-12-29. End: 2025-06-20.

What is the track record of JAG Alaska Inc. in performing similar naval vessel overhaul contracts?

Assessing the track record of JAG Alaska Inc. is crucial for understanding their capability to successfully execute the USNS GRASP overhaul. A review of past performance would involve examining previous contracts awarded to the company, particularly those involving dry docking and extensive repairs on vessels of similar size and complexity. Key indicators include on-time completion rates, adherence to budget (especially for fixed-price contracts), quality of work, and any history of disputes or contract modifications. Information on their safety record and any past performance evaluations from government agencies would also provide valuable insights into their reliability and expertise in the maritime repair sector.

How does the $18.8 million cost compare to similar naval vessel overhauls?

To benchmark the $18.8 million cost, one would need to compare it against historical data for similar naval vessel overhauls. Factors influencing cost include the vessel's class, age, size, the extent of planned work (e.g., routine maintenance vs. major upgrades), and the specific shipyard's overhead and labor rates. For instance, overhauls for larger or more complex vessels, or those requiring extensive structural repairs or system modernizations, would naturally incur higher costs. Conversely, routine maintenance on smaller or newer vessels would be less expensive. Without specific details on comparable contracts, it's challenging to provide a precise value-for-money assessment, but the firm-fixed-price nature suggests a negotiated ceiling intended to be competitive.

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

The primary risks associated with this contract include potential cost overruns if unforeseen issues arise during the overhaul (though mitigated by the firm-fixed-price structure), schedule delays that could impact the vessel's operational availability, and quality control issues affecting the longevity of repairs. The Navy manages these risks through the contract type, requiring the contractor to absorb most cost increases. Performance specifications and oversight during the execution phase help ensure quality. The defined period of performance and potential penalties for delays also incentivize timely completion. Furthermore, the selection of JAG Alaska Inc. implies a pre-assessment of their capability to manage these inherent risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in achieving competitive pricing for specialized maritime services?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad market participation with the need for specialized capabilities. By excluding sources that do not meet specific, justifiable criteria (e.g., technical expertise, past performance, facility requirements), the agency ensures that only qualified bidders compete. This can lead to more meaningful competition among capable firms, potentially resulting in better pricing than a completely unrestricted competition where unqualified bidders might participate. However, the effectiveness hinges on the justification for exclusions; overly restrictive exclusions could inadvertently limit competition and lead to higher prices. For specialized services like naval vessel overhauls, this approach often strikes a reasonable balance.

What is the historical spending trend for USNS GRASP maintenance and similar vessel overhauls by the Department of the Navy?

Analyzing historical spending for USNS GRASP maintenance and similar vessel overhauls by the Department of the Navy would reveal trends in costs, frequency of maintenance cycles, and the types of contractors utilized. This data helps in forecasting future budgetary needs and identifying potential cost-saving opportunities. For example, a trend of increasing costs for similar overhauls might indicate rising labor and material expenses, or a need for more comprehensive maintenance strategies. Conversely, stable or decreasing costs could suggest effective cost management or increased competition. Understanding these patterns provides context for the current $18.8 million award and its place within the Navy's overall maintenance budget.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220524R4125

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3306 SORREL RD, SEWARD, AK, 99664

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,122,689

Exercised Options: $18,822,977

Current Obligation: $18,822,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline