DoD Awards $33.2M Ship Repair Contract to Pacific Shipyards International, LLC
Contract Overview
Contract Amount: $33,216,339 ($33.2M)
Contractor: Pacific Shipyards International, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-06
End Date: 2025-02-05
Contract Duration: 275 days
Daily Burn Rate: $120.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
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 $33.2 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC for work described as: SHIP REPAIR Key points: 1. Contract value of $33.2 million for ship repair services. 2. Awarded by the Department of the Navy under full and open competition. 3. Potential risk associated with a single delivery order for a 275-day duration. 4. Spending falls within the Ship Building and Repairing sector (NAICS 336611).
Value Assessment
Rating: good
The contract value of $33.2 million appears reasonable for ship repair services, especially given the 275-day duration. Benchmarking against similar contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the use of a single delivery order might limit the scope of competitive pressure for specific tasks within the period.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers. The $33.2 million award is expected to reflect a fair market price.
Public Impact
Ensures operational readiness of naval vessels through essential repair services. Supports critical maritime infrastructure and the defense industrial base. Provides employment opportunities within the shipbuilding and repair sector in Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single delivery order for a long duration
- Limited visibility into specific task order pricing
Positive Signals
- Full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is crucial for national defense. Spending in this sector can fluctuate based on fleet maintenance needs and shipbuilding programs.
Small Business Impact
While the primary awardee is Pacific Shipyards International, LLC, there is potential for subcontracting opportunities for small businesses within the scope of ship repair and maintenance.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed price contract type and full and open competition provide a degree of accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost creep on a long-duration delivery order.
- Limited competition for specific tasks within the delivery order period.
- Dependence on a single contractor for critical repair services over an extended period.
Tags
ship-building-and-repairing, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 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 $33.2 million.
What is the period of performance?
Start: 2024-05-06. End: 2025-02-05.
What is the breakdown of costs within the $33.2 million award, and how does it compare to industry benchmarks for similar repair work?
A detailed cost breakdown would reveal the allocation for labor, materials, overhead, and profit. Comparing these elements to industry benchmarks for similar naval vessel repairs would offer insight into the cost-effectiveness of the award. Without this breakdown, a definitive assessment of value is challenging, though the competitive award process suggests a reasonable price.
What are the specific risks associated with a single delivery order for a 275-day period, and what mitigation strategies are in place?
A single, long-duration delivery order might limit the government's ability to re-evaluate pricing or scope if unforeseen issues arise or market conditions change. Risks include potential cost overruns if initial estimates are inaccurate or if the contractor faces unexpected challenges. Mitigation could involve robust contract clauses for change orders, performance monitoring, and clear communication channels.
How effectively does this contract contribute to the long-term readiness and modernization goals of the naval fleet?
This contract directly supports the operational readiness of naval vessels by ensuring they receive necessary repairs. Its effectiveness in contributing to long-term modernization depends on whether the repairs address obsolescence or enable upgrades. Consistent and timely execution of such repair contracts is vital for maintaining a capable and modern fleet.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002419R4442
Offers Received: 2
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: $33,392,810
Exercised Options: $33,265,526
Current Obligation: $33,216,339
Actual Outlays: $12,700,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002420D4448
IDV Type: IDC
Timeline
Start Date: 2024-05-06
Current End Date: 2025-02-05
Potential End Date: 2025-02-05 00:00:00
Last Modified: 2025-10-20
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