NOAA Awards $307M Firm Fixed Price Contract for Class B Vessel Construction to Thoma-Sea Marine Constructors

Contract Overview

Contract Amount: $306,952,023 ($307.0M)

Contractor: Thoma-Sea Marine Constructors, L.L.C.

Awarding Agency: Department of Commerce

Start Date: 2023-06-23

End Date: 2031-12-30

Contract Duration: 3,112 days

Daily Burn Rate: $98.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETAIL DESIGN AND CONSTRUCTION OF CLASS B VESSELS - NOAA

Place of Performance

Location: HOUMA, TERREBONNE County, LOUISIANA, 70363

State: Louisiana Government Spending

Plain-Language Summary

Department of Commerce obligated $307.0 million to THOMA-SEA MARINE CONSTRUCTORS, L.L.C. for work described as: DETAIL DESIGN AND CONSTRUCTION OF CLASS B VESSELS - NOAA Key points: 1. Significant investment in NOAA's vessel fleet, impacting maritime operations. 2. Thoma-Sea Marine Constructors secures a large contract, indicating strong market position. 3. Potential risks include project delays and cost overruns in long-term construction. 4. Spending falls within the Ship Building and Repairing sector.

Value Assessment

Rating: good

The contract value of $306,952,023.39 is substantial for vessel construction. Benchmarking against similar large-scale shipbuilding contracts would be necessary for a precise value assessment, but the firm fixed price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices and encourage innovation from multiple bidders.

Taxpayer Impact: Taxpayers benefit from a competitive process likely leading to a more efficient use of funds for critical NOAA infrastructure.

Public Impact

Enhances NOAA's capacity for scientific research and operational missions at sea. Supports the shipbuilding industry and associated supply chains. Ensures the availability of modern, reliable vessels for critical environmental monitoring and data collection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long project duration (over 8 years) increases risk of scope creep or unforeseen cost increases.
  • Dependence on a single contractor for a large project.
  • Potential for supply chain disruptions impacting material availability and delivery timelines.

Positive Signals

  • Firm Fixed Price contract provides cost certainty for the government.
  • Full and open competition suggests a robust selection process.
  • Contract awarded to a domestic shipyard, supporting U.S. maritime industry.

Sector Analysis

This contract falls within the Ship Building and Repairing sector (NAICS 336611). Spending in this sector is often project-driven and can be influenced by government procurement needs for defense, research, and infrastructure.

Small Business Impact

While the primary contractor is Thoma-Sea Marine Constructors, the scale of this project likely involves numerous subcontracts. Opportunities for small businesses may exist within the supply chain for components, materials, and specialized services.

Oversight & Accountability

The definitive contract structure implies detailed oversight from NOAA. Regular progress reports, milestone reviews, and quality assurance checks will be crucial for ensuring successful project completion and accountability.

Related Government Programs

  • Ship Building and Repairing
  • Department of Commerce Contracting
  • National Oceanic and Atmospheric Administration Programs

Risk Flags

  • Long-term project duration increases risk exposure.
  • Potential for supply chain disruptions.
  • Contractor performance risk over an extended period.
  • Complexity of managing large-scale shipbuilding projects.

Tags

ship-building-and-repairing, department-of-commerce, la, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $307.0 million to THOMA-SEA MARINE CONSTRUCTORS, L.L.C.. DETAIL DESIGN AND CONSTRUCTION OF CLASS B VESSELS - NOAA

Who is the contractor on this award?

The obligated recipient is THOMA-SEA MARINE CONSTRUCTORS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $307.0 million.

What is the period of performance?

Start: 2023-06-23. End: 2031-12-30.

What specific capabilities will the new Class B vessels provide to NOAA's mission?

The new Class B vessels are expected to significantly enhance NOAA's operational capabilities, likely supporting advanced scientific research, data collection, and environmental monitoring. Their specific design will dictate their suitability for tasks such as hydrographic surveys, fisheries research, or atmospheric studies, ultimately improving NOAA's ability to fulfill its mandate.

What are the primary risks associated with the long duration of this construction contract?

The extended timeline presents risks including potential inflation impacting material and labor costs, technological obsolescence of vessel systems by completion, and the possibility of contractor performance degradation over time. Furthermore, shifts in government priorities or budget constraints could necessitate contract modifications, adding complexity and potential delays.

How effectively does the firm fixed price structure mitigate cost overruns for NOAA?

The firm fixed price (FFP) structure is designed to transfer most of the cost overrun risk to the contractor. NOAA is obligated to pay the agreed-upon price unless changes are formally directed. This provides significant cost certainty, but it relies on the contractor's accurate initial cost estimation and efficient project management.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1305M222RNMAN00157

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 137 BARRY BELANGER ST, HOUMA, LA, 70363

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $625,784,253

Exercised Options: $306,952,023

Current Obligation: $306,952,023

Actual Outlays: $117,592,575

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-06-23

Current End Date: 2031-12-30

Potential End Date: 2031-12-30 00:00:00

Last Modified: 2026-01-30

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