DOD awards $46.4M for Bridge Erection Boat production, a sole-source contract for specialized marine equipment

Contract Overview

Contract Amount: $46,437,971 ($46.4M)

Contractor: Birdon America Inc

Awarding Agency: Department of Defense

Start Date: 2019-12-09

End Date: 2021-04-30

Contract Duration: 508 days

Daily Burn Rate: $91.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRIDGE ERECTION BOAT (BEB) AND CREW PROTECTION KIT (CPK) PRODUCTION. THIS IS A HARDWARE DELIVERY ORDER.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $46.4 million to BIRDON AMERICA INC for work described as: BRIDGE ERECTION BOAT (BEB) AND CREW PROTECTION KIT (CPK) PRODUCTION. THIS IS A HARDWARE DELIVERY ORDER. Key points: 1. The contract value of $46.4 million represents a significant investment in specialized marine assets. 2. Sole-source procurement raises questions about potential price overruns and limited market engagement. 3. The duration of 508 days suggests a complex manufacturing or delivery process for the boats. 4. The absence of competition may indicate a lack of readily available alternative suppliers for this niche equipment. 5. Focus on hardware delivery highlights the tangible nature of this defense procurement. 6. The contract's classification as a Delivery Order indicates it's part of a larger, potentially existing, framework agreement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized equipment. Without competitive bids, it's difficult to ascertain if the $46.4 million price reflects fair market value. The unit cost, derived from the total award and an assumed number of boats (not provided), would be a key metric for comparison. However, the lack of transparency inherent in sole-source awards makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Birdon America Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. This could translate to a higher overall expenditure for this specialized equipment.

Public Impact

The primary beneficiaries are the U.S. Army Corps of Engineers, who will utilize the Bridge Erection Boats and Crew Protection Kits for critical infrastructure projects and military operations. The services delivered include the production and delivery of specialized marine hardware essential for bridging operations in various environments. The geographic impact is likely national, supporting military readiness and disaster response capabilities across the United States and potentially overseas deployments. Workforce implications may include job creation within Birdon America Inc. and its supply chain, particularly in manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Lack of transparency in pricing due to no competitive bids.
Potential for vendor lock-in if this is a unique capability.
Limited public data on the specific technical requirements and performance metrics.

Positive Signals

Addresses a critical military need for specialized marine equipment.
Contract awarded to a single, potentially capable, supplier.
Firm Fixed Price contract type can provide cost certainty if well-defined.

Sector Analysis

The marine vessel construction industry is a specialized sector within manufacturing. The Department of Defense is a significant consumer of specialized vessels for various operational needs, including logistics, troop transport, and engineering support. The market for Bridge Erection Boats is likely niche, with a limited number of manufacturers possessing the specific expertise and certifications required. Comparable spending benchmarks would typically involve other large vessel procurements or specialized military equipment contracts, but direct comparisons are difficult due to the unique nature of BEBs.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Birdon America Inc., is responsible for fulfilling the contract, and any subcontracting decisions would be at their discretion, without a specific set-aside requirement driving participation from small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Delivery Order under a larger framework, existing oversight mechanisms for that framework would likely apply. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Military Engineering Equipment
Naval Vessel Construction
Amphibious Assault Craft
Logistics Support Vessels
Army Corps of Engineers Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.4 million to BIRDON AMERICA INC. BRIDGE ERECTION BOAT (BEB) AND CREW PROTECTION KIT (CPK) PRODUCTION. THIS IS A HARDWARE DELIVERY ORDER.

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 $46.4 million.

What is the period of performance?

Start: 2019-12-09. End: 2021-04-30.

What is the specific technical capability of the Bridge Erection Boat (BEB) and Crew Protection Kit (CPK)?

The provided data does not detail the specific technical capabilities of the Bridge Erection Boat (BEB) and Crew Protection Kit (CPK). However, based on their names and the procuring agency (Department of the Army), it can be inferred that BEBs are designed for the rapid construction and deployment of bridges, likely in military or disaster relief scenarios. They are specialized marine vessels that facilitate the assembly and placement of bridge components. Crew Protection Kits (CPKs) likely refer to safety and survival equipment for the personnel operating these boats, ensuring their well-being in potentially hazardous operational environments. Further details would typically be found in the contract's Statement of Work (SOW) or technical specifications, which are not publicly available in this dataset.

Why was this contract awarded on a sole-source basis, and what are the implications for cost?

The data indicates this contract was 'NOT COMPETED' and is 'sole-source'. The specific justification for this sole-source award is not provided in the dataset. Common reasons for sole-source procurement include the existence of only one responsible source, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed contract where only the original contractor can provide the necessary services or supplies. The implication for cost is significant: without competition, the government loses the benefit of price negotiation and comparison that multiple bids would provide. This can lead to higher prices than might be achieved in a competitive environment, potentially resulting in less value for taxpayer money.

What is the historical spending pattern for Bridge Erection Boats and Crew Protection Kits by the Department of Defense?

The provided data only includes a single contract award for the 'BRIDGE ERECTION BOAT (BEB) AND CREW PROTECTION KIT (CPK) PRODUCTION' valued at $46.4 million. This dataset does not offer historical spending patterns for these specific items. To understand historical spending, one would need to access broader contract databases and search for previous awards related to BEBs and CPKs, potentially across different fiscal years and military branches. Analyzing such data would reveal trends in procurement volume, average contract values, and the prevalence of competitive versus sole-source awards for this type of equipment over time.

How does the $46.4 million award compare to other Department of the Army marine vessel procurements?

Without access to a comprehensive database of all Department of the Army marine vessel procurements, a direct comparison of the $46.4 million award is difficult. However, this figure represents a substantial investment for specialized marine hardware. The 'Boat Building' North American Industry Classification System (NAICS) code (336612) encompasses a range of vessel construction activities. The value of this contract suggests it is for a significant number of units or highly specialized, large vessels, rather than smaller, more common craft. To provide a meaningful comparison, one would need to identify similar procurements for military-specific vessels, such as landing craft, patrol boats, or other engineering support vessels, and analyze their award values and contract types.

What are the potential risks associated with a sole-source contract for critical defense equipment?

Sole-source contracts for critical defense equipment carry several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it can result in reduced innovation, as there is less incentive for the contractor to invest in improving their product or processes when they are guaranteed the business. Thirdly, it can create vendor lock-in, making it difficult and costly to switch to a different supplier in the future, even if performance issues arise. Finally, sole-source awards can sometimes be perceived as lacking transparency, potentially raising concerns about fairness and the prudent use of public funds, although they are often justified by specific circumstances like unique technical requirements or urgent needs.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4965 KINGSTON ST, DENVER, CO, 80239

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $46,437,971

Exercised Options: $46,437,971

Current Obligation: $46,437,971

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV19D0093

IDV Type: IDC

Timeline