DoD's $79.5M LCS-10 Repair Contract Awarded to Vigor Marine LLC Under Full and Open Competition

Contract Overview

Contract Amount: $79,519,650 ($79.5M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-18

End Date: 2022-07-02

Contract Duration: 410 days

Daily Burn Rate: $193.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C480, USS GABRIELLE GIFFORDS (LCS-10) FY21 DSRA, SSP: TPPC-LCS10-SSSD21-CNO1, BASE DELIVERY ORDER

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $79.5 million to VIGOR MARINE LLC for work described as: C480, USS GABRIELLE GIFFORDS (LCS-10) FY21 DSRA, SSP: TPPC-LCS10-SSSD21-CNO1, BASE DELIVERY ORDER Key points: 1. The contract is for a Dry-docking, Special Maintenance, Availability, and Repair (DSRA) for the USS Gabrielle Giffords (LCS-10). 2. Awarded to Vigor Marine LLC, this represents a significant investment in naval vessel maintenance. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm fixed-price contract type aims to control costs for the Department of the Navy.

Value Assessment

Rating: good

The award amount of $79.5M for a DSRA is substantial. Benchmarking against similar complex naval vessel repair contracts is necessary to fully assess value, but the firm fixed-price structure and competitive award are positive indicators.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary costs to taxpayers for essential naval maintenance.

Public Impact

Ensures the operational readiness of a key Littoral Combat Ship (LCS). Supports critical naval infrastructure and maintenance capabilities. Contributes to the economic activity within the shipbuilding and repair sector. Highlights the importance of maintaining advanced naval assets for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs.
Dependence on a single contractor for a critical maintenance task.
Scope creep could increase the final cost beyond the initial award.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.
Focus on maintaining a modern naval asset.
Contract awarded to a known entity in the marine repair industry.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a critical component of the defense industrial base. Spending in this area is essential for maintaining fleet readiness and national security, with significant capital investment typically required for complex vessel overhauls.

Small Business Impact

While the primary award went to Vigor Marine LLC, the extent of small business participation through subcontracting is not detailed in this award notice. Further investigation would be needed to determine the impact on small businesses.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. The firm fixed-price nature provides some cost control, but diligent oversight will be crucial to manage the scope and ensure quality of repairs.

Related Government Programs

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

Risk Flags

Potential for schedule delays due to complexity of repairs.
Risk of unforeseen structural or mechanical issues discovered during overhaul.
Dependence on a single contractor for a critical maintenance task.
Ensuring long-term cost-effectiveness of the repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.5 million to VIGOR MARINE LLC. C480, USS GABRIELLE GIFFORDS (LCS-10) FY21 DSRA, SSP: TPPC-LCS10-SSSD21-CNO1, BASE DELIVERY ORDER

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 $79.5 million.

What is the period of performance?

Start: 2021-05-18. End: 2022-07-02.

What is the historical performance of Vigor Marine LLC on similar naval repair contracts?

Assessing Vigor Marine LLC's past performance on comparable contracts is crucial for understanding their capability and reliability in executing complex naval repairs. Reviewing their track record regarding schedule adherence, quality of work, and budget management on previous Department of Defense or similar projects will provide valuable insights into the likelihood of successful contract completion and potential risks.

How does the awarded price compare to independent cost estimates for this type of repair?

Comparing the $79.5 million award to independent government or industry cost estimates is vital for validating the fairness of the price. If the award is significantly higher than estimates, it could indicate a lack of sufficient competition or potential inefficiencies. Conversely, a price below estimates might raise concerns about the scope or quality of work.

What are the specific performance metrics and quality assurance measures included in the contract?

Understanding the contract's performance metrics and quality assurance protocols is key to evaluating effectiveness. Detailed specifications on required repairs, acceptance criteria, inspection schedules, and remedies for non-compliance will ensure the work meets naval standards and taxpayer expectations. This information helps gauge the government's ability to enforce quality and timely completion.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carlyle Group Management L.L.C.

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: $79,519,650

Exercised Options: $79,519,650

Current Obligation: $79,519,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D4326

IDV Type: IDC

Timeline