Navy awards $60.1M ship repair contract to Vigor Marine LLC for USS Coronado work

Contract Overview

Contract Amount: $60,109,086 ($60.1M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-12

End Date: 2019-12-13

Contract Duration: 276 days

Daily Burn Rate: $217.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS CORONADO DO RFP 8034: BASIC WORK PACKAGE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $60.1 million to VIGOR MARINE LLC for work described as: USS CORONADO DO RFP 8034: BASIC WORK PACKAGE Key points: 1. Contract value represents a significant investment in naval readiness and maintenance. 2. Competition dynamics suggest a potentially competitive bidding process for this type of service. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The contract duration of 276 days indicates a substantial scope of work. 5. Geographic concentration in California highlights regional specialization in naval support. 6. This award falls within the broader category of shipbuilding and repair services.

Value Assessment

Rating: good

The contract value of $60.1 million for a 276-day delivery order appears reasonable for complex ship repair and maintenance. Benchmarking against similar naval vessel repair contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, but the final cost can still be influenced by the contractor's efficiency and unforeseen issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders were likely solicited. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The presence of multiple bidders suggests that the market for these specialized services is robust enough to support significant competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the required services, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS Coronado is maintained. Services delivered include essential repair and maintenance work on a naval vessel. The geographic impact is concentrated in California, supporting the regional maritime industrial base. Workforce implications include employment for skilled tradespeople in shipbuilding and repair sectors in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during repair.
Dependence on Vigor Marine LLC's capacity and performance for timely completion.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market and potentially better pricing.
Award to an established marine LLC indicates a level of contractor capability.

Sector Analysis

The shipbuilding and repair sector is a critical component of the U.S. industrial base, particularly for national defense. This contract falls under NAICS code 336611, which encompasses establishments primarily engaged in building and repairing ships and boats. Spending in this sector is often driven by defense needs, maintenance cycles for existing fleets, and the construction of new vessels. Comparable spending benchmarks would involve analyzing other large-scale naval repair contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While Vigor Marine LLC is a large entity, the subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on Vigor Marine's subcontracting practices and whether they engage smaller specialized firms for specific repair tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. 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
Defense Readiness Contracts
Fleet Modernization Programs

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope is underestimated
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.1 million to VIGOR MARINE LLC. USS CORONADO DO RFP 8034: BASIC WORK PACKAGE

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 $60.1 million.

What is the period of performance?

Start: 2019-03-12. End: 2019-12-13.

What is Vigor Marine LLC's track record with similar naval repair contracts?

Vigor Marine LLC has a history of performing complex repair and maintenance work for the U.S. Navy and other maritime clients. Their track record includes various vessel types and repair scopes, often involving significant structural, mechanical, and electrical systems work. Analyzing their past performance ratings, on-time delivery rates, and any past performance issues on similar contracts would provide a clearer picture of their reliability and capability for this specific USS Coronado delivery order. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) data are key sources for this assessment.

How does the $60.1 million award compare to the estimated cost or historical spending for similar ship repair projects?

Without specific details on the scope of work for the USS Coronado repair, a direct comparison is challenging. However, $60.1 million for a 276-day delivery order on a naval vessel suggests a substantial overhaul or complex repair. To benchmark, one would compare this to the average cost of similar maintenance availabilities for destroyers or cruisers, factoring in the vessel class, age, and specific systems requiring attention. Historical spending on the USS Coronado's maintenance or comparable vessels within the Navy's fleet would also provide context. The firm-fixed-price nature aims to cap costs, but the initial award value is the primary data point for comparison.

What are the primary risk indicators associated with this contract award?

Key risk indicators include the complexity of the required repairs, which could lead to unforeseen issues and cost overruns despite the fixed-price nature. The duration of the contract (276 days) suggests a significant scope, increasing the potential for schedule delays. Contractor performance risk is also a factor; while Vigor Marine is an established entity, their ability to execute this specific project to Navy standards and timelines is crucial. Furthermore, the reliance on a single delivery order for a large sum introduces concentration risk for the contractor and potential disruption if performance falters.

How effective is the firm-fixed-price contract type in ensuring value for money for this naval repair?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This incentivizes Vigor Marine LLC to manage costs efficiently and complete the work within the agreed-upon price. For the Navy, it provides budget certainty. However, the effectiveness hinges on the accuracy of the initial scope definition and cost estimation. If the scope is poorly defined or unforeseen technical challenges arise, the contractor may face significant losses, potentially impacting quality or leading to disputes, or the initial price may have been inflated to account for contractor risk.

What are the historical spending patterns for ship repair and maintenance within the Department of the Navy?

The Department of the Navy consistently allocates significant portions of its budget to ship maintenance, repair, and modernization. Historical spending patterns show billions of dollars annually dedicated to these efforts, reflecting the large size and operational demands of the fleet. Spending fluctuates based on fleet readiness requirements, aging vessel profiles, and strategic shipbuilding plans. Contracts like this one for the USS Coronado are part of a continuous cycle of maintenance necessary to ensure the operational availability of naval assets. Analyzing trends in contract awards by value, duration, and competition level over several fiscal years would reveal broader patterns.

What is the significance of the 'Ship Building and Repairing' sector (NAICS 336611) in the context of federal spending?

The 'Ship Building and Repairing' sector is a vital component of federal spending, particularly for the Department of Defense and the Department of Homeland Security (Coast Guard). This sector supports national security by ensuring the readiness of naval and maritime assets. Federal investment in this area also stimulates economic activity, supports a highly skilled workforce, and maintains critical industrial capabilities. Spending levels are influenced by geopolitical factors, fleet modernization needs, and the lifecycle of existing vessels. Contracts awarded in this sector often involve complex engineering, specialized facilities, and substantial capital investment.

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: N0002417R4325

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Carlyle Group L P (UEI: 175406842)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,109,086

Exercised Options: $60,109,086

Current Obligation: $60,109,086

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D4326

IDV Type: IDC

Timeline