DoD awards $74.4M for ship repair to Pacific Shipyards International, LLC, with a 388-day duration

Contract Overview

Contract Amount: $74,400,878 ($74.4M)

Contractor: Pacific Shipyards International, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-24

End Date: 2025-07-17

Contract Duration: 388 days

Daily Burn Rate: $191.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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 $74.4 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC for work described as: SHIP REPAIR Key points: 1. Contract value of $74.4M represents a significant investment in naval readiness. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A single delivery order was issued, indicating a specific need for services. 4. The firm fixed-price contract type shifts risk to the contractor. 5. The contract duration of 388 days suggests a substantial scope of work. 6. The award is for ship repair, a critical component of naval operations.

Value Assessment

Rating: good

The contract value of $74.4 million for ship repair services appears reasonable given the 388-day duration and the critical nature of maintaining naval vessels. Benchmarking against similar large-scale ship repair contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it caps costs.

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 fact that it was competed openly suggests a healthy market for ship repair services and likely resulted in competitive pricing. Further analysis would be needed to determine the exact number of bids received.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives the best possible value for its investment in ship repair.

Public Impact

Naval readiness and operational capability are enhanced through the repair of essential vessels. The services delivered directly support the Department of the Navy's mission. The geographic impact is primarily in Hawaii, where the contractor is located. The contract supports skilled labor in the shipbuilding and repair industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during repairs, despite the fixed-price nature.
Dependence on a single contractor for a critical service could pose a risk if performance issues emerge.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to an established entity in Hawaii may indicate local economic benefit and existing infrastructure.

Sector Analysis

The ship building and repairing sector (NAICS 336611) is a vital part of the industrial base, supporting both commercial and defense needs. Federal spending in this sector is often driven by defense procurement and maintenance requirements. Comparable spending benchmarks would typically involve analyzing historical contracts for similar vessel classes and repair scopes within the Department of Defense.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated by the public nature of federal contract awards, though specific performance details may be sensitive.

Related Government Programs

Naval Ship Maintenance Contracts
Defense Readiness Contracts
Shipbuilding and Repair Services

Risk Flags

Potential for schedule delays impacting fleet readiness.
Risk of cost escalation if unforeseen repair complexities arise.
Dependence on contractor's technical expertise and workforce availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.4 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 $74.4 million.

What is the period of performance?

Start: 2024-06-24. End: 2025-07-17.

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

A review of historical contract data for Pacific Shipyards International, LLC would be necessary to assess their performance record. This would involve examining past awards, delivery performance, any contract modifications, and any instances of disputes or terminations. Without specific historical data, it's difficult to definitively state their track record. However, being awarded a contract of this magnitude by the Department of the Navy suggests a level of capability and past performance that met the agency's requirements during the source selection process.

How does the awarded amount compare to similar ship repair contracts for vessels of comparable size and complexity?

To benchmark the $74.4 million award, one would need to compare it against contracts for similar ship classes (e.g., destroyers, cruisers, carriers) requiring comparable repair scopes (e.g., hull maintenance, propulsion system overhauls, electronic system upgrades). Analyzing the price per day or price per vessel for similar contracts awarded by the Navy or other branches over the past few years would provide a valuable comparison. Factors like geographic location, specific repair requirements, and market conditions at the time of award also influence pricing, so a direct comparison requires careful consideration of these variables.

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

The primary risk for the government in a firm fixed-price contract is that the contractor may not be incentivized to find the most cost-effective solutions if they believe they can complete the work within budget without further cost-saving efforts. Conversely, the contractor bears the risk of cost overruns if unforeseen issues arise during the extensive 388-day repair period, such as unexpected material costs, labor shortages, or discovery of more extensive damage than initially assessed. This could potentially lead to quality compromises if the contractor attempts to cut corners to maintain profitability, although quality assurance measures should mitigate this.

What is the expected impact of this contract on the operational readiness of the Navy's fleet?

This contract is crucial for maintaining and enhancing the operational readiness of the Navy's fleet. By ensuring that vessels undergo necessary repairs and maintenance, the contract directly contributes to the availability of ships for deployment and mission execution. The timely completion of these repairs, as stipulated by the 388-day duration, is vital to prevent extended periods of unavailability for the affected vessels, thereby supporting the Navy's overall force projection and national security objectives.

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

Historical spending trends for ship repair by the Department of the Navy typically show significant and consistent investment, reflecting the large size and operational demands of the fleet. Annual spending can fluctuate based on fleet modernization programs, the age of vessels, and geopolitical requirements. Analyzing multi-year spending data would reveal patterns in contract values, types of repairs prioritized, and the distribution of funds across different ship classes and repair facilities. This specific $74.4 million award fits within the broader context of substantial, ongoing naval maintenance expenditures.

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: 1

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: $74,787,966

Exercised Options: $74,400,878

Current Obligation: $74,400,878

Actual Outlays: $13,447,828

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