DoD Awards $63.7M for Ship Building and Repair, Full and Open Competition
Contract Overview
Contract Amount: $63,673,421 ($63.7M)
Contractor: Vigor Works LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-16
End Date: 2026-09-30
Contract Duration: 1,840 days
Daily Burn Rate: $34.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOW RATE INITIAL PRODUCTION - 1 VESSEL
Place of Performance
Location: CLACKAMAS, CLACKAMAS County, OREGON, 97015
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $63.7 million to VIGOR WORKS LLC for work described as: LOW RATE INITIAL PRODUCTION - 1 VESSEL Key points: 1. Significant contract value for a single vessel production. 2. Full and open competition suggests potential for competitive pricing. 3. Risk associated with low rate initial production phase. 4. Shipbuilding and Repair sector is capital-intensive and complex.
Value Assessment
Rating: good
The contract value of $63.7 million for a single vessel appears reasonable given the complexity of shipbuilding. Benchmarking against similar naval vessel contracts would provide a more precise assessment.
Cost Per Unit: $63,673,420.76
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this shipbuilding effort.
Public Impact
Supports national defense capabilities through naval vessel acquisition. Potential for job creation in the shipbuilding and repair industry. Ensures readiness of naval assets for operational deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Low Rate Initial Production (LRIP) phase can carry production risks.
- Long contract duration (1840 days) increases exposure to economic fluctuations.
- Reliance on a single vessel award may limit broader industrial base engagement.
Positive Signals
- Full and open competition is a positive signal for price discovery.
- Firm Fixed Price contract type shifts cost risk to the contractor.
- Department of Defense is a reliable and experienced contracting agency.
Sector Analysis
The shipbuilding and repair sector is characterized by high capital investment, specialized labor, and long production cycles. This contract falls within the typical range for naval vessel construction, though specific vessel type is not detailed.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Further analysis would be needed to determine small business participation as subcontractors.
Oversight & Accountability
The Department of Defense has robust oversight mechanisms for shipbuilding contracts, including quality assurance and progress monitoring. The firm fixed price nature of the contract also incentivizes contractor accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Low Rate Initial Production (LRIP) phase risks
- Long contract duration
- Potential for supply chain disruptions
- Complexity of shipbuilding technology
Tags
ship-building-and-repairing, department-of-defense, or, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.7 million to VIGOR WORKS LLC. LOW RATE INITIAL PRODUCTION - 1 VESSEL
Who is the contractor on this award?
The obligated recipient is VIGOR WORKS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $63.7 million.
What is the period of performance?
Start: 2021-09-16. End: 2026-09-30.
What specific type of vessel is being procured, and how does its complexity influence the cost?
The specific vessel type is not detailed in the provided data. However, naval vessels can range from small patrol boats to large aircraft carriers, each with vastly different complexity and cost drivers. Factors like advanced systems, weaponry, and hull design significantly impact the final price. Understanding the vessel's mission and capabilities is crucial for a precise cost assessment.
What are the key risks associated with the Low Rate Initial Production (LRIP) phase for this vessel?
LRIP phases often involve risks related to refining production processes, validating manufacturing techniques, and ensuring supply chain stability for new or complex components. For this vessel, potential risks include unforeseen technical challenges, integration issues with new systems, and potential cost overruns if production efficiencies are not quickly achieved. Effective quality control and proactive risk management are essential during this phase.
How does the firm fixed price contract type impact the government's financial exposure and the contractor's performance incentives?
A firm fixed price (FFP) contract shifts the majority of cost risk to the contractor, providing the government with cost certainty. This incentivizes the contractor to manage costs efficiently and adhere to the agreed-upon price. For the government, it limits financial exposure to unforeseen cost increases. However, it can also lead contractors to potentially cut corners on quality if not adequately monitored, making robust oversight critical.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vigor Industrial LLC
Address: 9700 SE LAWNFIELD RD, CLACKAMAS, OR, 97015
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: $63,673,421
Exercised Options: $63,673,421
Current Obligation: $63,673,421
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $20,632,687
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV17D0086
IDV Type: IDC
Timeline
Start Date: 2021-09-16
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 12:09:00
Last Modified: 2025-06-11
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