DoD awards $7.36M for ship repair to Pacific Shipyards International, LLC, with 3 bidders

Contract Overview

Contract Amount: $7,364,368 ($7.4M)

Contractor: Pacific Shipyards International, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-10-15

Contract Duration: 1,111 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SHIP REPAIR

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC for work described as: SHIP REPAIR Key points: 1. Contract value of $7.36M for ship repair services. 2. Awarded to Pacific Shipyards International, LLC. 3. Competition involved 3 bidders, indicating moderate market interest. 4. Contract type is a Definitive Contract with Firm Fixed Price. 5. Performance period spans from September 30, 2022, to October 15, 2025. 6. Geographic location of performance is Hawaii. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $7.36M for ship repair appears reasonable given the duration and scope of services. Benchmarking against similar naval ship repair contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost risks are largely borne by the contractor, which can incentivize efficiency. However, without detailed service breakdowns or historical cost data for this specific vessel class, a definitive value assessment is challenging.

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 open, specific sources may have been excluded for defined reasons. With 3 bidders, the competition level suggests a healthy, though not extensive, market response. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing, though a higher number of bidders could potentially drive prices lower.

Taxpayer Impact: The presence of multiple bidders helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that discourages inflated pricing.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring operational readiness of naval vessels. Services delivered include essential ship repair and maintenance. Geographic impact is concentrated in Hawaii, supporting local maritime industry and infrastructure. Workforce implications include employment opportunities for skilled trades in the shipbuilding and repair sector in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repair complexities arise, despite fixed-price terms.
Dependence on a single contractor for critical repair services in a specific region.
Risk of schedule delays impacting naval operational readiness if contractor performance falters.

Positive Signals

Firm fixed-price contract structure limits cost uncertainty for the government.
Multiple bidders indicate a competitive market, potentially leading to better pricing.
Long-term performance period allows for sustained support and relationship building.

Sector Analysis

The shipbuilding and repair sector is a critical component of the defense industrial base, supporting naval operations and national security. This contract falls within the broader manufacturing and repair services industry, specifically focusing on specialized maritime maintenance. Comparable spending benchmarks in this sector are highly variable, depending on vessel type, size, and complexity of repairs. The market is characterized by specialized facilities and skilled labor requirements.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb: false'. The prime contractor, Pacific Shipyards International, LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. The absence of a small business set-aside suggests that the primary focus was on securing the most capable and competitive offer, rather than specifically promoting small business participation in this instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful completion of work. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Shipbuilding and Repair Services
Department of Defense Procurement
Maritime Industry Support
Defense Logistics Agency Contracts

Risk Flags

Potential for schedule slippage impacting operational readiness.
Risk of contractor cost overruns impacting long-term viability.
Dependence on a single provider in a specific geographic region.
Quality control and assurance for complex repair work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC. SHIP REPAIR

Who is the contractor on this award?

The obligated recipient is PACIFIC SHIPYARDS INTERNATIONAL, 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 $7.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-10-15.

What is the track record of Pacific Shipyards International, LLC with the Department of Defense?

Pacific Shipyards International, LLC has a history of contracts with the Department of Defense, primarily focused on ship repair and maintenance services. Analyzing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, is crucial for assessing their reliability. Reviewing contract award data and performance evaluations, where available, can provide insights into their capabilities and potential risks. Their experience with specific vessel classes and the complexity of repairs they have handled previously would be key indicators of their suitability for this current award.

How does the awarded price compare to similar ship repair contracts?

Benchmarking the $7.36 million award against similar ship repair contracts requires detailed comparison parameters, such as vessel class, age, size, type of repairs (e.g., routine maintenance vs. major overhaul), and geographic location. Without access to a comprehensive database of comparable contracts with detailed cost breakdowns, a precise comparison is difficult. However, the firm fixed-price nature of this contract suggests a degree of cost certainty for the government. The number of bidders (3) indicates a competitive process that likely influenced the final price, suggesting it is within a reasonable market range, though potentially not the absolute lowest possible price achievable with more bidders.

What are the primary risks associated with this contract?

Key risks include potential schedule delays impacting naval readiness, especially given the extended performance period (over 3 years). Unforeseen complexities in ship repair can lead to cost increases for the contractor, potentially impacting their financial stability or willingness to perform future work. There's also a risk related to the concentration of critical repair services in Hawaii, making the Navy reliant on a single provider in that region. Ensuring the contractor maintains adequate skilled labor and adheres to stringent quality standards throughout the contract duration are ongoing risk management considerations.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of contract?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific needs that might preclude certain vendors. For ship repair, this could be relevant if specific technical capabilities, security clearances, or facility access are required, leading to the exclusion of some potential bidders. While it allows for competition among eligible sources, the exclusion aspect means the government might not be considering the entire market. The effectiveness hinges on whether the exclusions were justified and if the remaining pool of bidders provided sufficient competition to ensure fair pricing and optimal value for the taxpayer.

What is the historical spending trend for ship repair by the Department of the Navy?

Historical spending by the Department of the Navy on ship repair and maintenance is substantial, reflecting the continuous need to maintain a large and complex fleet. Annual expenditures can fluctuate based on fleet size, operational tempo, and the lifecycle of naval vessels requiring major overhauls or modernization. Trends often show significant investment in maintaining readiness, with specific budget allocations for routine maintenance, dry-docking, and emergent repairs. Analyzing multi-year spending patterns can reveal strategic priorities and potential areas for cost optimization or increased investment.

What are the implications of the firm fixed-price (FFP) contract type for this award?

The Firm Fixed-Price (FFP) contract type places the majority of the cost risk on the contractor, Pacific Shipyards International, LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage costs efficiently and avoid overruns. For the Department of the Navy, it provides cost certainty, making budgeting more predictable. However, it also means that if the contractor encounters unexpected difficulties that significantly increase their costs, they may absorb losses, potentially impacting their long-term viability or future bidding behavior.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3225322R0016

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 705 N NIMITZ HWY, HONOLULU, HI, 96817

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,364,368

Exercised Options: $7,364,368

Current Obligation: $7,364,368

Actual Outlays: $2,609,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline