DoD awards $61.3M for USS Tulsa (LCS-16) FY22 DSRA, with Vigor Marine LLC securing the delivery order

Contract Overview

Contract Amount: $61,347,688 ($61.3M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-06

End Date: 2023-10-17

Contract Duration: 468 days

Daily Burn Rate: $131.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C420A, USS TULSA (LCS-16) FY22 DSRA DELIVERY ORDER

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $61.3 million to VIGOR MARINE LLC for work described as: C420A, USS TULSA (LCS-16) FY22 DSRA DELIVERY ORDER Key points: 1. The contract represents a significant investment in maintaining naval readiness and the operational capability of the USS Tulsa. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The firm fixed-price contract type shifts performance risk to the contractor, Vigor Marine LLC. 4. The duration of 468 days indicates a substantial scope of work for the Dry-docking, Selected Restricted Availability (DSRA). 5. The contract's value should be benchmarked against similar DSRA contracts for Littoral Combat Ships to assess value for money. 6. The geographic location of the award in Oregon may have implications for regional shipbuilding and repair capabilities.

Value Assessment

Rating: fair

The award of $61.3 million for the USS Tulsa's FY22 DSRA appears to be within a typical range for major ship repair availabilities. However, a precise value-for-money assessment requires comparison with similar DSRA contracts for Littoral Combat Ships (LCS) and other vessels of comparable size and complexity. Benchmarking against historical spending for LCS availabilities and industry standards for dry-docking, maintenance, and repair services would provide a clearer picture of whether this price reflects competitive market rates or if there are opportunities for cost savings in future procurements.

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 presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While multiple bidders are positive, the actual level of competition and its impact on pricing depend on the specific capabilities required and the number of qualified firms capable of performing such a specialized availability.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS Tulsa is maintained in a seaworthy condition. The services delivered include extensive maintenance, repair, and modernization activities critical for the ship's lifecycle. The geographic impact is concentrated in Oregon, supporting the regional maritime industrial base and associated workforce. The contract supports skilled labor within the shipbuilding and repair sector, including engineers, technicians, and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive repair work, despite the firm fixed-price structure.
Dependence on Vigor Marine LLC's capacity and performance, as they are the sole awardee for this specific delivery order.
The complexity of LCS maintenance may present unique challenges impacting schedule and cost.
Ensuring adequate quality control and oversight throughout the 468-day availability period.

Positive Signals

Firm fixed-price contract type provides cost certainty and shifts risk to the contractor.
Awarded under full and open competition, suggesting a robust bidding process.
Vigor Marine LLC's experience in ship repair is a positive indicator for successful execution.
The contract duration allows for comprehensive work to be completed, enhancing the ship's long-term readiness.

Sector Analysis

The shipbuilding and repairing industry (NAICS 336611) is a critical sector for national defense and maritime commerce. This contract falls within the naval ship maintenance and repair sub-sector, which is characterized by specialized facilities, skilled labor, and stringent quality requirements. The market size for naval ship repair is substantial, driven by the U.S. Navy's extensive fleet. Comparable spending benchmarks for similar availabilities on Littoral Combat Ships or other naval vessels would provide context for the $61.3 million award.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Vigor Marine LLC is the prime contractor, the extent of small business subcontracting opportunities is not detailed in the provided data. Future analysis could explore subcontracting plans and performance to assess the impact on the small business ecosystem within the maritime repair industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring Vigor Marine LLC to deliver the specified work within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics and inspection reports may not be publicly available. The Inspector General's office may conduct audits or investigations if performance issues or fraud are suspected.

Related Government Programs

Littoral Combat Ship (LCS) Program
Naval Ship Maintenance and Repair Contracts
Defense Readiness and Sustainment Programs
Shipbuilding and Repair Industry Contracts

Risk Flags

Potential for schedule slippage impacting fleet readiness.
Risk of unforeseen technical issues during extensive repairs.
Contractor performance quality concerns.
Adequacy of competition for specialized naval repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.3 million to VIGOR MARINE LLC. C420A, USS TULSA (LCS-16) FY22 DSRA 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 $61.3 million.

What is the period of performance?

Start: 2022-07-06. End: 2023-10-17.

What is Vigor Marine LLC's track record with similar naval repair contracts, particularly for Littoral Combat Ships?

Vigor Marine LLC has a history of performing complex repair and maintenance work for various naval vessels. While specific details on their past performance with Littoral Combat Ships (LCS) are not provided in this data snippet, their experience in ship repair is a key factor in their selection. A deeper dive into their contract history with the Navy, including past performance reviews and any reported issues on similar projects, would offer a more comprehensive understanding of their capabilities and reliability for this specific DSRA. Assessing their success in meeting cost, schedule, and quality requirements on prior naval contracts is crucial for evaluating the risk associated with this $61.3 million award.

How does the $61.3 million cost compare to other Dry-docking, Selected Restricted Availabilities (DSRA) for Littoral Combat Ships?

Benchmarking the $61.3 million award against other DSRA contracts for Littoral Combat Ships is essential for assessing value for money. The provided data indicates 3 bidders, suggesting some level of competition. However, without comparative data on the scope of work, duration, and specific maintenance tasks performed on other LCS DSRA contracts, it's difficult to definitively state if this price is high or low. Factors such as the specific availability period (FY22), the ship's condition, and the complexity of required repairs can significantly influence costs. A comprehensive analysis would involve reviewing historical contract awards for similar LCS availabilities to establish a reliable cost range and identify potential outliers.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns due to unforeseen repair issues, schedule delays impacting naval readiness, and performance deficiencies by the contractor. The firm fixed-price (FFP) contract structure mitigates cost overrun risk for the government by shifting financial responsibility to Vigor Marine LLC. However, this can incentivize the contractor to cut corners if not properly overseen. Schedule risk is managed through the defined contract duration (468 days) and performance milestones. Mitigation strategies typically involve robust government oversight, quality assurance inspections, and clear communication channels between the Navy and the contractor to address issues proactively and ensure timely completion.

What is the expected impact of this contract on the operational readiness of the USS Tulsa and the U.S. Navy's fleet?

This contract is critical for maintaining and enhancing the operational readiness of the USS Tulsa (LCS-16). The Dry-docking, Selected Restricted Availability (DSRA) involves extensive maintenance, repair, and potentially modernization activities necessary to ensure the ship is fully capable of performing its assigned missions. By completing this availability, the Navy ensures the USS Tulsa can return to operational status, contributing to the overall readiness of the Littoral Combat Ship class and the broader naval fleet. The timely and successful execution of this contract directly supports the Navy's ability to deploy assets effectively for national security objectives.

How has spending on Littoral Combat Ship maintenance and repair evolved over recent fiscal years?

Analyzing historical spending patterns for Littoral Combat Ship (LCS) maintenance and repair provides crucial context for the $61.3 million award. While this specific data point is for FY22, understanding the trend of LCS sustainment costs over several fiscal years (e.g., FY19-FY23) can reveal patterns of increasing or decreasing expenditures, identify periods of higher or lower maintenance activity, and highlight any significant shifts in contract values. Such an analysis would help determine if the current award is consistent with historical spending or represents a deviation, potentially indicating changes in maintenance needs, fleet age, or contracting strategies.

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: 3

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,870,208

Exercised Options: $61,347,688

Current Obligation: $61,347,688

Actual Outlays: $51,397,995

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