Navy Awards $220M Ship Repair Contract to Vigor Marine LLC, Sole Source

Contract Overview

Contract Amount: $220,324,242 ($220.3M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-05

End Date: 2025-10-16

Contract Duration: 619 days

Daily Burn Rate: $355.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TYCOM BASE WORK ITEMS

Place of Performance

Location: EVERETT, SNOHOMISH County, WASHINGTON, 98207

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $220.3 million to VIGOR MARINE LLC for work described as: TYCOM BASE WORK ITEMS Key points: 1. Significant contract value of $220M for ship building and repair. 2. Sole-source award to Vigor Marine LLC raises competition concerns. 3. Contract duration of 619 days indicates a substantial project. 4. Focus on ship repair within the Department of the Navy.

Value Assessment

Rating: questionable

The contract value of $220M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar ship repair contracts. Benchmarking against industry standards for comparable services is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Vigor Marine LLC. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple bids were solicited.

Taxpayer Impact: The absence of competition for a $220M contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The long contract duration suggests a critical need for these services. Potential for reduced innovation and service quality without competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Clear contract award
Defined scope of work

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a critical area for national defense. Spending benchmarks in this sector can vary widely based on the complexity and type of vessel.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further analysis would be needed to determine potential impacts on small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Accountability for performance and cost management will be critical throughout the contract's duration.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in price discovery.
Potential for contractor to leverage monopoly position.
Risk of cost overruns without competitive pressure.
Need for strong government oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $220.3 million to VIGOR MARINE LLC. TYCOM BASE WORK ITEMS

Who is the contractor on this award?

The obligated recipient is VIGOR MARINE 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 $220.3 million.

What is the period of performance?

Start: 2024-02-05. End: 2025-10-16.

What justification was provided for the sole-source award, and does it align with federal procurement regulations for non-competitive contracts?

Federal regulations allow for sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why competition was not feasible or advantageous, potentially citing unique capabilities, urgent needs, or specific technical requirements that only Vigor Marine LLC could meet. This justification is crucial for ensuring the award was appropriate and not simply a missed opportunity for competition.

How does the per-unit cost or overall pricing of this contract compare to historical data for similar ship repair services performed by the Navy or other agencies?

Without competitive bids, direct price comparison is challenging. However, the government should benchmark this contract's pricing against historical data for similar ship repair work, considering factors like vessel type, age, and scope of repairs. Analyzing the cost breakdown and comparing it to industry averages for labor, materials, and overhead can help identify potential overpricing. If significant deviations are found, it may indicate a need for stronger negotiation or future competitive strategies.

What performance metrics and oversight mechanisms are in place to ensure Vigor Marine LLC delivers high-quality services within the $220M budget and by the October 2025 deadline?

Robust performance metrics and stringent oversight are essential for a sole-source contract of this magnitude. The Department of the Navy should establish clear deliverables, quality standards, and key performance indicators (KPIs) tied to the contract. Regular progress reviews, site inspections, and financial audits will be necessary to monitor performance, manage risks, and ensure accountability. A dedicated contracting officer's representative (COR) should actively oversee the contract's execution to ensure taxpayer funds are used effectively and efficiently.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N4523A23R0551

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

Address: 5555 N CHANNEL AVE, PORTLAND, OR, 97217

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $220,324,242

Exercised Options: $220,324,242

Current Obligation: $220,324,242

Actual Outlays: $36,036,603

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $64,983,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline