DoD's $140.8M Bridge Erection Boat contract awarded to Birdon America Inc. for boat building

Contract Overview

Contract Amount: $140,797,044 ($140.8M)

Contractor: Birdon America Inc

Awarding Agency: Department of Defense

Start Date: 2013-11-18

End Date: 2020-09-30

Contract Duration: 2,508 days

Daily Burn Rate: $56.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRODUCTION OF BRIDGE ERECTION BOATS (BEB)

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70112

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $140.8 million to BIRDON AMERICA INC for work described as: PRODUCTION OF BRIDGE ERECTION BOATS (BEB) Key points: 1. The contract value of $140.8 million represents a significant investment in specialized marine construction equipment. 2. Awarded under full and open competition, this contract suggests a competitive bidding process for the BEB production. 3. The firm-fixed-price nature of the contract shifts performance risk to the contractor, Birdon America Inc. 4. The contract duration of approximately 2508 days indicates a long-term production requirement for these specialized vessels. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited. 6. The North American Industry Classification System (NAICS) code 336612 points to the specific industry segment of boat building.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the BEB's capabilities and features. However, the total award of $140.8 million over a multi-year period suggests a substantial investment. The firm-fixed-price contract type implies that the contractor bears the cost overruns, which can be a positive indicator of value if the price is competitive. Further analysis would require comparing the per-unit cost of these specialized boats against similar custom-built vessels or previous government procurements of comparable equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders participating, this suggests a reasonable level of competition for the production of Bridge Erection Boats. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives the best possible value for its investment. It also promotes a more robust and innovative defense industrial base.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers and other Department of Defense entities requiring rapid deployment of bridging capabilities. The contract delivers specialized Bridge Erection Boats (BEBs) essential for constructing temporary bridges in various operational environments. The geographic impact is national, with production likely occurring in Louisiana, but the deployed assets will support military operations globally. The contract supports jobs within the boat building and defense manufacturing sectors, contributing to the skilled workforce in these industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all production complexities.
Risk of schedule delays impacting the availability of critical bridging assets for military operations.
Dependence on a single contractor for the production of specialized and potentially unique equipment.
Limited visibility into the specific performance metrics and quality control processes of the contractor.
Potential for price increases in future procurements if market conditions or contractor costs escalate significantly.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Award under full and open competition suggests a competitive pricing environment at the time of award.
Long contract duration allows for economies of scale in production and potential for process optimization.
The contractor, Birdon America Inc., likely possesses specialized expertise in marine vessel construction.
The contract addresses a critical military capability requirement, ensuring readiness and operational flexibility.

Sector Analysis

The boat building industry, classified under NAICS code 336612, is a segment of the broader manufacturing sector. This contract for Bridge Erection Boats falls within the defense industrial base, specifically supporting military engineering and logistics capabilities. The market for specialized defense vessels can be niche, with a limited number of manufacturers possessing the required expertise and facilities. Comparable spending benchmarks would involve analyzing other government contracts for similar specialized marine craft or large-scale construction equipment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the specialized capabilities required for BEB production from a larger, potentially more experienced, prime contractor. The impact on the small business ecosystem would likely be indirect, through potential subcontracting opportunities if the prime contractor chooses to engage them, or through competition for future, smaller-scale related contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, which hold the contractor responsible for delivering the specified boats within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Engineering Equipment Procurement
Naval Vessel Construction Contracts
Defense Logistics Support
Army Corps of Engineers Projects
Specialized Marine Craft Acquisition

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Firm-fixed-price contract requires careful oversight to ensure quality.
Limited information on small business subcontracting impacts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.8 million to BIRDON AMERICA INC. PRODUCTION OF BRIDGE ERECTION BOATS (BEB)

Who is the contractor on this award?

The obligated recipient is BIRDON AMERICA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $140.8 million.

What is the period of performance?

Start: 2013-11-18. End: 2020-09-30.

What is the specific capability and intended operational use of the Bridge Erection Boats (BEBs) procured under this contract?

The Bridge Erection Boats (BEBs) procured under this contract are specialized marine vessels designed to support military engineering operations, primarily for the rapid construction and deployment of bridges. Their key function is to transport and position bridge sections, facilitating the creation of temporary crossing points over water obstacles, ravines, or other terrain impediments. These boats are crucial for maintaining mobility and logistical support for ground forces in diverse operational environments, enabling them to overcome geographical challenges and sustain offensive or defensive operations. The specific capabilities, such as towing capacity, maneuverability in various water conditions, and compatibility with different bridge systems, are tailored to meet the demanding requirements of military engineering.

How does the per-unit cost of these BEBs compare to similar specialized marine vessels procured by the government or in the commercial market?

Determining the precise per-unit cost of the Bridge Erection Boats (BEBs) is not possible with the provided data, as the total award amount of $140.8 million is for the production of an unspecified number of boats. However, given the specialized nature of military-grade engineering equipment, it is reasonable to assume that the per-unit cost would be substantial. To conduct a meaningful comparison, one would need to identify the total quantity of BEBs procured under this contract and then divide the total award by that quantity. Subsequently, this figure could be benchmarked against publicly available contract awards for similar specialized marine craft, such as pontoon boats, ferry craft, or other military engineering support vessels, considering factors like size, complexity, and technological features. Without the quantity, direct per-unit cost comparison is not feasible.

What is Birdon America Inc.'s track record with Department of Defense contracts, particularly for marine construction or specialized vessel production?

Birdon America Inc. has a history of securing contracts with the Department of Defense, including those related to marine vessels and support equipment. While specific details of their entire contract portfolio are not provided here, their successful bid for this significant $140.8 million contract for Bridge Erection Boats suggests a demonstrated capability and experience relevant to military engineering needs. Companies that win large-scale defense contracts typically undergo rigorous vetting processes, including assessments of their past performance, technical expertise, financial stability, and compliance history. Further investigation into their contract history, including performance reviews and any past issues or commendations, would provide a more comprehensive understanding of their track record in delivering complex defense-related marine assets.

What are the potential risks associated with a firm-fixed-price contract for complex equipment like BEBs, and how are they mitigated?

A firm-fixed-price (FFP) contract, while beneficial for budget certainty, carries inherent risks for both the government and the contractor when procuring complex equipment like Bridge Erection Boats (BEBs). For the government, the primary risk is that the contractor might cut corners on quality or performance to maximize profit if unforeseen production challenges arise, potentially leading to a less capable or durable end product. For the contractor, the risk is absorbing cost overruns if production expenses exceed the fixed price due to design issues, material cost increases, or labor inefficiencies. Mitigation strategies employed by the government often include stringent technical specifications, robust quality assurance and inspection protocols throughout the production process, performance-based milestones, and clear contractual remedies for non-compliance. The contractor mitigates risks through thorough planning, accurate cost estimation, efficient production processes, and potentially by incorporating contingency into their pricing.

How does the duration of this contract (approx. 2508 days) impact the overall value and strategic implications for the Department of Defense?

The extended duration of approximately 2508 days (roughly 7 years) for the production of Bridge Erection Boats (BEBs) has several strategic implications for the Department of Defense (DoD). Firstly, it allows for a sustained production rate, potentially leading to economies of scale and more predictable unit costs over time compared to short-term, high-volume orders. This long-term commitment also signals stability to the contractor, encouraging investment in specialized tooling and workforce development. Strategically, it ensures a consistent supply of critical bridging assets, aligning with long-term military readiness and operational planning requirements. However, a long duration also introduces risks related to technological obsolescence, potential changes in military requirements, and the contractor's sustained financial health and operational capacity over an extended period. The DoD must actively manage these risks through contract oversight and potential contract modifications if necessary.

What is the historical spending pattern for Bridge Erection Boats or similar military engineering equipment by the Department of Defense?

Analyzing the historical spending patterns for Bridge Erection Boats (BEBs) or similar military engineering equipment by the Department of Defense (DoD) requires access to comprehensive procurement databases. This specific contract award of $140.8 million represents a significant single investment. Generally, the DoD procures such specialized equipment periodically, driven by modernization needs, fleet replacement cycles, and operational demands. Spending in this category can fluctuate based on geopolitical conditions, budget allocations for military engineering, and the phasing of major acquisition programs. Without access to historical data on prior BEB procurements or comparable systems, it's difficult to establish a precise spending trend. However, it is understood that the DoD consistently invests in engineering and construction equipment to maintain its global operational capabilities, with significant sums allocated annually to various categories of military hardware and support systems.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 909 POYDRAS ST STE 1400, NEW ORLEANS, LA, 70112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $141,525,354

Exercised Options: $140,797,044

Current Obligation: $140,797,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline