DoD's $20.5M IGF Support Contract Awarded to George G. Sharp, Inc. for Shipbuilding and Repair

Contract Overview

Contract Amount: $20,472,052 ($20.5M)

Contractor: George G. Sharp, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-08-01

End Date: 2018-05-31

Contract Duration: 1,764 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF SUPPORT COSTS

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to GEORGE G. SHARP, INC. for work described as: IGF::CT::IGF SUPPORT COSTS Key points: 1. Contract value represents a significant investment in specialized shipbuilding and repair support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1764 days) indicates a long-term need for these services. 4. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs without an additional fee. 5. The North American Industry Classification System (NAICS) code 336611 points to a focus on shipbuilding and repair infrastructure. 6. The contract's performance period spans across multiple fiscal years, requiring sustained budget allocation. 7. The award was managed by the Defense Contract Management Agency, indicating a focus on defense-related procurement.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for 'IGF SUPPORT COSTS' within the shipbuilding and repair sector. The 'COST NO FEE' structure implies that the government bears the direct cost of services, with the contractor's profit margin not explicitly defined in the award amount. Further analysis would require understanding the specific services rendered and their market rates to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the competition was generally open, certain sources were excluded. This suggests a potentially limited but still competitive bidding environment. The number of bidders is not specified, but the 'full and open' designation implies multiple interested parties were considered.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging lower prices and better service offerings compared to sole-source awards. However, the specific impact depends on the degree of competition and the nature of the excluded sources.

Public Impact

The primary beneficiaries are the Department of Defense and its various shipbuilding and repair operations. The contract delivers essential support services crucial for maintaining and enhancing naval assets. Geographic impact is likely concentrated around naval shipyards and relevant defense contracting hubs. Workforce implications include employment opportunities for skilled labor in shipbuilding, engineering, and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes lead to less incentive for cost control by the contractor if not rigorously overseen.
The exclusion of certain sources in an otherwise 'full and open' competition warrants further investigation into the rationale.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The long contract duration could present risks related to evolving technological needs or changing operational requirements.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair procurement process.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight protocols.
The duration of the contract implies a stable and predictable need for these critical support services.
George G. Sharp, Inc. has a history of providing services within this sector, suggesting relevant expertise.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense and maritime infrastructure. This contract falls within the broader defense industrial base, specifically supporting naval fleet readiness. Comparable spending benchmarks are difficult to establish without more granular data on the specific 'IGF SUPPORT COSTS' but represent a segment of the substantial government investment in maintaining and modernizing its fleet.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, George G. Sharp, Inc., but are not explicitly mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures would be embedded in the contract's reporting requirements and performance evaluations. Transparency is facilitated by the contract being awarded under full and open competition, with details available through federal procurement databases.

Related Government Programs

Naval Ship Maintenance and Repair Contracts
Defense Logistics Support Services
Shipbuilding and Conversion Contracts
Defense Contract Management Agency Services

Risk Flags

Potential for cost creep in 'COST NO FEE' contracts without rigorous oversight.
Limited competition due to exclusion of sources.
Risk of technological obsolescence over the contract's long duration.
Uncertainty regarding the specific nature and necessity of 'IGF SUPPORT COSTS'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to GEORGE G. SHARP, INC.. IGF::CT::IGF SUPPORT COSTS

Who is the contractor on this award?

The obligated recipient is GEORGE G. SHARP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2013-08-01. End: 2018-05-31.

What specific 'IGF SUPPORT COSTS' are covered under this contract?

The provided data abbreviates the contract description as 'IGF::CT::IGF SUPPORT COSTS'. 'IGF' likely refers to Intermediate Government Furnished equipment or a similar designation, while 'CT' could indicate 'Contract Type' or 'Cost Type'. 'IGF SUPPORT COSTS' would therefore encompass expenses related to the support, maintenance, or management of government-furnished equipment or resources essential for the shipbuilding and repair activities. Without further details from the contract's statement of work, the precise nature of these costs (e.g., labor, materials, overhead, specialized services) remains unspecified but is critical for a full understanding of the contract's scope and value.

How does the 'COST NO FEE' contract type impact contractor incentives and government oversight?

A 'COST NO FEE' (CNF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This structure is typically used when the scope of work is uncertain or when the government wants to ensure maximum effort without the contractor bearing financial risk. For the government, it means direct cost control is paramount, requiring robust oversight to ensure costs are reasonable, allocable, and allowable. For the contractor, the primary incentive is to perform the work diligently to meet the contract objectives, as their profit is not tied to cost savings or efficiency gains beyond what is necessary to fulfill the contract requirements. This necessitates strong government auditing and monitoring to prevent cost overruns and ensure performance.

What is the significance of the NAICS code 336611 in relation to this contract?

The North American Industry Classification System (NAICS) code 336611 specifically identifies establishments primarily engaged in building and repairing ships and boats. This code confirms that George G. Sharp, Inc. is operating within the core shipbuilding and repair industry. For this contract, it signifies that the services provided by the contractor are directly related to the construction, conversion, repair, and alteration of vessels, including naval ships. This specialization is crucial for the Department of Defense, which relies on a robust industrial base capable of maintaining and upgrading its fleet to ensure operational readiness and national security.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process?

This procurement method indicates a deviation from standard 'full and open competition.' While the solicitation was made available to all responsible sources, certain potential bidders were explicitly excluded. The reasons for exclusion must be documented and justified, often relating to national security, proprietary information, or specific capabilities required that only a limited set of firms possess. This suggests that while competition was sought, it was within a constrained pool of eligible contractors. The implication for taxpayers is that the exclusion might limit the breadth of competitive pricing, although the remaining competition could still yield favorable terms if robust.

What is the historical spending pattern for 'IGF SUPPORT COSTS' within the Department of Defense?

Analyzing historical spending patterns for 'IGF SUPPORT COSTS' requires access to detailed historical contract data beyond the single award provided. Typically, support costs for government-furnished equipment in large sectors like shipbuilding and repair can fluctuate based on fleet modernization programs, maintenance cycles, and the introduction of new technologies. Consistent spending might indicate ongoing needs, while significant increases or decreases could signal shifts in defense strategy or budget priorities. Without a broader dataset, it's impossible to establish a trend or benchmark for this specific contract's value against past expenditures.

What are the potential risks associated with a contract duration of 1764 days?

A contract duration of 1764 days (approximately 4.8 years) presents several potential risks. Firstly, the technological landscape in shipbuilding and repair can evolve rapidly; a long-term contract might not adequately account for advancements in materials, processes, or digital integration. Secondly, operational requirements for naval assets can change due to geopolitical shifts or strategic reorientations, potentially making the contracted services less relevant or requiring costly modifications. Thirdly, economic conditions and inflation over such a long period can impact the cost of labor and materials, potentially straining a 'COST NO FEE' arrangement if not properly managed. Finally, long-term reliance on a single contractor could reduce flexibility and hinder the adoption of innovative solutions from other market players.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6554012R0018

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 5041 CORP WODS DR STE 100, VIRGINIA BEACH, VA, 23462

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,472,052

Exercised Options: $20,472,052

Current Obligation: $20,472,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6554013D0007

IDV Type: IDC

Timeline