DoD awards $29M ship repair contract to Pacific Shipyards International, LLC for 362 days

Contract Overview

Contract Amount: $29,002,266 ($29.0M)

Contractor: Pacific Shipyards International, LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-10

End Date: 2026-06-07

Contract Duration: 362 days

Daily Burn Rate: $80.1K/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 $29.0 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC for work described as: SHIP REPAIR Key points: 1. Contract value appears reasonable given the duration and scope of ship repair services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of 362 days indicates a significant, ongoing need for maintenance. 5. Award to a single entity suggests specialized capabilities are required. 6. Geographic location in Hawaii may influence labor and material costs.

Value Assessment

Rating: good

The contract value of approximately $29 million for a 362-day period of performance suggests a daily rate of roughly $79,000. This rate needs to be benchmarked against similar large-scale ship repair contracts, particularly those involving complex naval vessels. Given the fixed-price nature, the government has a degree of certainty regarding the total expenditure. However, a detailed comparison with historical repair costs for comparable vessels and the specific scope of work would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of two bidders, as suggested by the 'no' field, implies a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the solicitation and the evaluation process would further clarify the extent of competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms. This process helps ensure the government is not overpaying for essential services.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring the operational readiness of its vessels. Services delivered include essential maintenance, repair, and potentially modernization of naval ships. The geographic impact is concentrated in Hawaii, supporting the naval presence in the Pacific theater. Workforce implications include direct employment at Pacific Shipyards International and potential indirect employment in supporting industries within Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen complexities arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical ship repair services could pose a risk if performance issues emerge.
Geographic concentration in Hawaii might limit surge capacity or alternative options in emergencies.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to an established entity like Pacific Shipyards International may indicate a track record of successful performance.
The contract duration suggests a long-term commitment and a stable demand for these services.

Sector Analysis

The ship building and repairing sector (NAICS 336611) is a critical component of the defense industrial base, supporting naval operations and national security. This contract falls within the broader defense sector, specifically focusing on the maintenance and sustainment of naval assets. The market size for naval ship repair is substantial, driven by the global presence of naval fleets. Comparable spending benchmarks would involve analyzing other large-scale repair contracts awarded by the Navy and other maritime defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Pacific Shipyards International, LLC, may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem. An analysis of their subcontracting plan, if available, would provide further insight.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, which incentivizes the contractor to manage costs effectively. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Vessel Repair Contracts
Ship Maintenance and Modernization Programs
Defense Logistics Agency Contracts
Shipbuilding and Repair Industry Support

Risk Flags

Potential for cost growth if scope changes are required.
Dependence on a single contractor for critical services.
Geographic concentration may limit alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 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 $29.0 million.

What is the period of performance?

Start: 2025-06-10. End: 2026-06-07.

What is the track record of Pacific Shipyards International, LLC with the Department of Defense, particularly for similar ship repair contracts?

Pacific Shipyards International, LLC has a history of performing contracts with the Department of Defense, including significant work related to ship repair and maintenance. Analyzing their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, is crucial. Data on previous awards, their values, and any reported issues or commendations would provide context for their reliability and capability in executing this current $29 million contract. A review of contract databases and performance assessment reports (e.g., CPARS) would be necessary to fully assess their track record.

How does the awarded amount of $29 million compare to the estimated cost or benchmark for similar ship repair services?

The awarded amount of $29 million for a 362-day contract needs to be benchmarked against industry standards and historical data for comparable naval vessel repairs. The daily rate implied is approximately $79,000. This figure should be compared to rates for similar services on vessels of comparable size and complexity, considering factors like shipyard location, labor costs, and the specific scope of work (e.g., routine maintenance vs. major overhauls). Without specific details on the scope of work and comparable contract data, it's difficult to definitively assess value, but the fixed-price nature provides cost certainty.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns if unforeseen technical issues arise that necessitate scope changes (though mitigated by fixed-price), delays in delivery impacting naval readiness, and contractor performance issues. Mitigation strategies often involve robust contract oversight, clear performance metrics, defined procedures for change orders, and contingency planning by the Navy. The fixed-price contract itself is a risk mitigation tool, placing the onus on the contractor to manage costs. The limited number of bidders could also be a risk if it indicates a lack of market depth.

How effective is the full and open competition process in ensuring competitive pricing for this type of specialized service?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows any responsible source to submit an offer. In the context of specialized services like naval ship repair, this process aims to attract a wide range of qualified bidders. The fact that two bids were received suggests a degree of competition, but the optimal level would depend on the specific market dynamics and the complexity of the requirement. A thorough analysis would examine the number of proposals received, the competitiveness of the pricing submitted, and whether the chosen contractor offered the best value.

What is the historical spending pattern for ship repair services by the Department of the Navy in the Hawaii region?

Historical spending data for ship repair in Hawaii by the Department of the Navy would reveal trends in contract awards, average contract values, and the primary contractors utilized. Analyzing this pattern can help contextualize the current $29 million award, indicating whether it is within the typical range or represents an outlier. Understanding past spending can also highlight any shifts in contracting strategies, such as increased reliance on specific shipyards or changes in competition levels over time. This information is vital for assessing the long-term cost-effectiveness and strategic sourcing of these critical services.

What are the implications of the firm fixed-price contract type on contractor performance and government cost control?

A firm fixed-price (FFP) contract type is generally preferred by the government when the scope of work is well-defined and risks can be reasonably assessed. For the contractor, it offers the potential for higher profit margins if they can efficiently manage costs and performance. For the government, it provides the highest degree of cost certainty, as the price is fixed regardless of the contractor's actual costs. However, it places the burden of cost control and risk management squarely on the contractor. If unforeseen issues arise, the contractor bears the financial impact unless a contract modification is formally negotiated.

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

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: $29,013,243

Exercised Options: $29,002,266

Current Obligation: $29,002,266

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