Department of the Army awards $28M for 34 Bridge Electronic Boats, raising questions on competition and value

Contract Overview

Contract Amount: $27,979,890 ($28.0M)

Contractor: Birdon America Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2027-09-23

Contract Duration: 1,182 days

Daily Burn Rate: $23.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BRIDGE ELECTRON BOAT (BEB). CONTRACT TO PROCURE SYSTEMS. DELIVERY ORDER TO PROCURE 34 BEBS.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80239

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to BIRDON AMERICA INC for work described as: BRIDGE ELECTRON BOAT (BEB). CONTRACT TO PROCURE SYSTEMS. DELIVERY ORDER TO PROCURE 34 BEBS. Key points: 1. The contract's value of $27.98 million for 34 Bridge Electronic Boats (BEBs) warrants scrutiny for cost-effectiveness. 2. The sole-source nature of this award limits competitive pressure, potentially impacting pricing and innovation. 3. A lack of competition is a key risk indicator, suggesting potential overpayment or suboptimal solutions. 4. The contract duration of 1182 days indicates a significant, long-term commitment for these specialized systems. 5. The procurement falls under the Boat Building NAICS code, placing it within a niche manufacturing sector. 6. The firm-fixed-price contract type shifts cost risk to the contractor, but the absence of competition clouds value assessment.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source procurements for Bridge Electronic Boats. The firm-fixed-price contract type is generally favorable for cost control, but without competitive bids, it's difficult to ascertain if the $27.98 million price represents a fair market value. The per-unit cost of approximately $823,000 for each BEB requires further investigation against industry standards for similar specialized marine equipment.

Cost Per Unit: Approximately $823,000 per unit.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, BIRDON AMERICA INC, was solicited. The justification for this approach is not detailed in the provided data. Sole-source awards bypass the competitive bidding process, which typically drives down prices and encourages a wider range of solutions. The lack of competition here means taxpayers did not benefit from potential cost savings or innovative alternatives that a competitive environment might have produced.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these 34 Bridge Electronic Boats, as there was no market pressure to ensure the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive 34 Bridge Electronic Boats to support its operations. These BEBs are likely intended for logistical support, riverine operations, or bridging capabilities in various operational environments. The geographic impact is not specified but could extend to any theater of operations where the Army requires such assets. The contract supports the workforce at BIRDON AMERICA INC and potentially its supply chain partners within the boat building industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may restrict access to potentially more innovative or cost-effective solutions from other manufacturers.
The significant contract value raises concerns about whether a competitive process could have yielded better value.
Absence of data on performance metrics makes it difficult to assess the long-term effectiveness and reliability of the procured systems.

Positive Signals

Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
The Department of the Army is acquiring specialized assets critical for certain operational needs.
The contract duration suggests a planned, long-term integration of these systems into Army capabilities.

Sector Analysis

The boat building industry (NAICS 336612) is a specialized sector focused on the design, manufacture, and repair of watercraft. This contract for Bridge Electronic Boats falls within the defense manufacturing segment of this industry. While specific market size data for BEBs is not readily available, the broader defense shipbuilding and repair market is substantial. This procurement represents a significant investment in a niche capability, and its value should be benchmarked against other specialized military marine equipment procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting plans for small businesses (sb: false). This suggests that the primary award went to a large business, BIRDON AMERICA INC. Consequently, there may be limited direct opportunities for small businesses to participate in the prime contract. However, the contractor may still engage small businesses for components or services, but this is not guaranteed or specified in the provided information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the contract implies that financial oversight will focus on ensuring deliverables meet specifications. Transparency is limited by the sole-source award, as the justification and negotiation details are not public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

Military Watercraft Procurement
Naval Systems Contracts
Defense Logistics Support Systems
Army Engineering Equipment
Specialized Marine Vessel Acquisition

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency
Uncertain value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to BIRDON AMERICA INC. BRIDGE ELECTRON BOAT (BEB). CONTRACT TO PROCURE SYSTEMS. DELIVERY ORDER TO PROCURE 34 BEBS.

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 $28.0 million.

What is the period of performance?

Start: 2024-06-28. End: 2027-09-23.

What is the specific operational purpose and technical capability of these Bridge Electronic Boats (BEBs)?

Bridge Electronic Boats (BEBs) are specialized marine vessels designed to provide tactical bridging capabilities. Their primary function is to facilitate the crossing of water obstacles, such as rivers or canals, by military forces. They can be deployed individually or linked together to form a floating bridge or ferry. These boats often possess features like robust propulsion systems for maneuvering in currents, modular deck structures for rapid assembly, and the ability to carry significant loads. The specific technical capabilities, such as load capacity, speed, and environmental operating limits, would be detailed in the contract's Statement of Work (SOW) and technical specifications, which are not provided here. Their deployment is crucial for maintaining mobility and logistical support in complex terrain.

Can the $27.98 million contract value be benchmarked against similar procurements for Bridge Electronic Boats?

Benchmarking the $27.98 million contract value for 34 Bridge Electronic Boats (BEBs) is difficult without access to a broader dataset of comparable procurements. The provided data indicates a sole-source award to BIRDON AMERICA INC, which inherently limits direct comparisons. To perform a robust benchmark, one would need to identify other recent contracts for similar types of specialized military boats, considering factors like quantity, technical specifications, capabilities (e.g., load-bearing, speed, amphibious capability), and the contracting environment (e.g., competitive vs. sole-source). The per-unit cost of approximately $823,000 suggests a high degree of specialization. Without comparative data on similar sole-source or competitive awards, it is challenging to definitively state whether this price represents excellent, fair, or questionable value for money.

What are the risks associated with a sole-source procurement for critical military assets like BEBs?

Sole-source procurements, like the one for these Bridge Electronic Boats (BEBs), carry several inherent risks for the government and taxpayers. Firstly, the absence of competition means the government likely foregoes the potential for lower prices that multiple bidders might offer. This can lead to overpayment. Secondly, it limits the government's access to a wider range of technological solutions or innovations that other potential suppliers might bring to the table. Thirdly, there's a risk that the sole-source contractor may not be as incentivized to maintain high quality or efficient delivery schedules, as there is no immediate threat of losing future business to competitors. Finally, sole-source awards can sometimes indicate a lack of market research or planning, potentially resulting in suboptimal choices or higher long-term sustainment costs if the chosen system is not widely supported.

What is the track record of BIRDON AMERICA INC in delivering similar military marine systems?

Information regarding the specific track record of BIRDON AMERICA INC in delivering similar military marine systems, particularly Bridge Electronic Boats (BEBs), is not provided in the data summary. To assess their track record, one would need to examine past performance on government contracts, including factors such as on-time delivery, adherence to technical specifications, quality of work, and any history of contract disputes or terminations. A review of contract databases and performance reports (like Contractor Performance Assessment Reporting System - CPARS) would be necessary to evaluate their reliability and capability in fulfilling complex military procurements. Without this information, it is difficult to gauge the level of risk associated with relying solely on this contractor for these critical assets.

How does the $27.98 million spending on BEBs compare to overall Department of the Army spending on marine assets?

Comparing the $27.98 million spent on these 34 Bridge Electronic Boats (BEBs) to the overall Department of the Army's spending on marine assets requires access to comprehensive historical budget and expenditure data for the Army's various maritime programs. The Army operates a diverse fleet, including logistics vessels, patrol craft, landing craft, and specialized bridging equipment. This $28 million represents a specific investment in a niche capability. To contextualize it, one would need to analyze the Army's total annual or multi-year spending on all marine assets, identify the proportion allocated to specialized bridging or riverine capabilities, and understand the strategic importance and lifecycle costs associated with BEBs relative to other marine platforms. Without this broader financial picture, it's difficult to determine if this spending level is typical, high, or low within the Army's overall marine procurement strategy.

What are the potential long-term sustainment and maintenance costs associated with these BEBs?

The provided data does not include information on the long-term sustainment and maintenance costs associated with the 34 Bridge Electronic Boats (BEBs). However, for specialized military equipment, sustainment costs can often be substantial, potentially equaling or exceeding the initial procurement cost over the system's lifecycle. These costs typically include spare parts, depot-level maintenance, technical support, training for operators and maintainers, and potential upgrades. Given the sole-source nature of the procurement, the terms for sustainment and maintenance services, including pricing and availability of parts, would be critical factors to scrutinize. A comprehensive lifecycle cost analysis should ideally be conducted to understand the total ownership cost, not just the acquisition price, to ensure long-term affordability and operational readiness.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

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: $27,979,890

Exercised Options: $27,979,890

Current Obligation: $27,979,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV19D0093

IDV Type: IDC

Timeline