Commerce Department awards $2.36M for dockside repairs to NOAA ship Oscar Elton Sette

Contract Overview

Contract Amount: $2,359,747 ($2.4M)

Contractor: Confluence Corp

Awarding Agency: Department of Commerce

Start Date: 2023-09-14

End Date: 2024-02-23

Contract Duration: 162 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOCKSIDE REPAIRS TO NOAA SHIP OSCAR ELTON SETTE.

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

Department of Commerce obligated $2.4 million to CONFLUENCE CORP for work described as: DOCKSIDE REPAIRS TO NOAA SHIP OSCAR ELTON SETTE. Key points: 1. Value for money appears reasonable given the specialized nature of marine vessel repair. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include schedule delays or unforeseen repair complexities common in maritime projects. 4. Performance context is specific to the maintenance needs of a NOAA research vessel. 5. This contract falls within the Ship Building and Repairing sector, a niche but essential industry.

Value Assessment

Rating: good

The contract value of approximately $2.36 million for dockside repairs to a NOAA research vessel is within a typical range for such specialized maritime services. Benchmarking against similar contracts for vessel maintenance and repair indicates that the pricing is competitive, especially considering the specific requirements for the Oscar Elton Sette. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition, which is generally sufficient to drive reasonable pricing and ensure a fair market outcome.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiary is the National Oceanic and Atmospheric Administration (NOAA), ensuring the operational readiness of its research vessel. Services delivered include essential dockside repairs, maintaining the structural integrity and functionality of the Oscar Elton Sette. The geographic impact is focused on Hawaii, where the vessel is likely based or undergoing repairs. Workforce implications include employment for skilled tradespeople in the maritime repair industry in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs.
Dependence on specialized labor and parts could lead to delays.
Ensuring compliance with environmental regulations during repair work.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition, indicating market validation.
Specific focus on maintaining a critical scientific asset for NOAA.

Sector Analysis

The Ship Building and Repairing sector (NAICS 336611) is a specialized industrial segment focused on the construction, repair, and conversion of ships and boats. This contract represents a small but vital component of this sector, supporting the operational needs of government research fleets. Comparable spending in this sector can vary widely based on the size and complexity of the vessels, but maintenance and repair contracts are a consistent requirement for maritime organizations.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, nor is there information on subcontracting plans. Given the specialized nature of the work, it is possible that larger, established firms in the maritime repair industry were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's procurement and financial management offices, with specific oversight from NOAA. The firm-fixed-price contract type provides a degree of accountability by fixing the total cost. Transparency is generally maintained through federal procurement databases, though detailed inspection reports are usually internal.

Related Government Programs

NOAA Vessel Maintenance Contracts
Federal Maritime Repair Services
Department of Commerce Procurement
Ship Building and Repairing Industry Spending

Risk Flags

Potential for schedule delays
Risk of unforeseen repair complexities
Dependence on specialized labor and parts

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.4 million to CONFLUENCE CORP. DOCKSIDE REPAIRS TO NOAA SHIP OSCAR ELTON SETTE.

Who is the contractor on this award?

The obligated recipient is CONFLUENCE CORP.

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 $2.4 million.

What is the period of performance?

Start: 2023-09-14. End: 2024-02-23.

What is the track record of Confluence Corp in performing similar maritime repair services for federal agencies?

A review of federal procurement data would be necessary to fully assess Confluence Corp's track record. However, the award of this contract suggests they possess the necessary qualifications and experience to perform dockside repairs on NOAA vessels. Further investigation into past performance evaluations, any past disputes, or contract modifications on similar projects would provide a more comprehensive understanding of their reliability and expertise in this specialized field. Examining their history with other government agencies, particularly those with maritime assets, would also be informative.

How does the awarded price compare to the original estimated cost or budget for these repairs?

The provided data indicates an awarded amount of $2,359,746.92. Without access to the original contract solicitation or pre-award estimates, it is difficult to definitively compare this to the initial budget. However, the fact that it was awarded under full and open competition suggests that the price achieved is likely reflective of market conditions and the bidders' assessments of the required work. If the awarded price is significantly lower than any pre-solicitation estimates, it could indicate effective competition or a more favorable market than anticipated. Conversely, if it aligns closely or exceeds estimates, it might suggest the initial budgeting was accurate or potentially underestimated.

What are the primary risks associated with the 'Ship Building and Repairing' sector for federal contracts?

The 'Ship Building and Repairing' sector presents several inherent risks for federal contracts. These include the potential for unforeseen structural issues discovered during repairs, which can lead to significant cost overruns and schedule delays, especially with older vessels. The reliance on specialized materials and skilled labor can also create vulnerabilities to supply chain disruptions and workforce shortages. Furthermore, stringent environmental and safety regulations add complexity and potential for compliance-related issues. For government contracts, ensuring adherence to specific military or scientific operational standards adds another layer of risk. The long lead times and complex interdependencies in repair projects also increase the likelihood of schedule slippage.

What is the historical spending pattern for dockside repairs and maintenance of NOAA vessels?

Analyzing historical spending for NOAA vessel repairs requires access to detailed federal procurement databases over multiple fiscal years. Generally, NOAA, like other agencies operating significant fleets, would have recurring expenditures for vessel maintenance, dry-docking, and repairs. The frequency and cost of these repairs are influenced by the age of the vessels, their operational tempo, and the specific environmental conditions they operate in. Spending can fluctuate year-to-year based on major overhaul cycles versus routine maintenance. Contracts for specialized repairs, like those for the Oscar Elton Sette, are often awarded through competitive processes, but the total annual outlay for NOAA's fleet maintenance would represent a consistent, albeit variable, budget item.

What does the 'Delivery Order' contract type imply about the overall program and this specific award?

A 'Delivery Order' typically signifies that this award is a task order issued against a larger, pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. This implies that a broader scope of services or a range of products was previously competed and awarded to one or more contractors. This specific delivery order then defines the particular work (dockside repairs for the Oscar Elton Sette), quantity, price, and delivery schedule for this instance. This contracting approach allows agencies to procure necessary goods or services efficiently over a period, leveraging pre-competed agreements while tailoring individual orders to specific needs.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 653 MAPUNAPUNA ST STE A, HONOLULU, HI, 96819

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,359,747

Exercised Options: $2,359,747

Current Obligation: $2,359,747

Actual Outlays: $2,359,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M218DNMAN0024

IDV Type: IDC

Timeline