NOAA awards $95.4M contract for OSCAR DYSON FSV midlife extension, focusing on ship repair

Contract Overview

Contract Amount: $95,408,666 ($95.4M)

Contractor: JAG Alaska Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-06-05

End Date: 2027-12-05

Contract Duration: 913 days

Daily Burn Rate: $104.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 1305M225C0004 - OSCAR DYSON FSV MIDLIFE EXTENSION PROGRAM

Place of Performance

Location: NEWPORT, LINCOLN County, OREGON, 97365

State: Oregon Government Spending

Plain-Language Summary

Department of Commerce obligated $95.4 million to JAG ALASKA INC. for work described as: 1305M225C0004 - OSCAR DYSON FSV MIDLIFE EXTENSION PROGRAM Key points: 1. Contract value represents a significant investment in maintaining critical NOAA research assets. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to control costs and provide predictability for the government. 4. The contract duration of over two years indicates a substantial scope of work for ship maintenance. 5. The focus on ship building and repairing highlights the specialized nature of this acquisition. 6. The contractor, JAG ALASKA INC., will be responsible for a complex midlife extension program.

Value Assessment

Rating: good

The contract value of $95.4 million for a vessel midlife extension appears reasonable given the scope of work, which typically involves extensive structural repairs, system upgrades, and modernization. Benchmarking against similar large-scale vessel refits for research or operational fleets suggests that this price falls within expected ranges. The firm-fixed-price contract type also provides a degree of cost certainty for the government, although the final cost can be influenced by unforeseen issues discovered during the extensive repair process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down prices through competitive pressure. Even with two bidders, the process aims to ensure the government receives the best value.

Public Impact

The primary beneficiaries are NOAA and the scientific community, who will have access to a modernized and operational research vessel. The contract will ensure the continued availability of the OSCAR DYSON, a key asset for marine research and data collection. The geographic impact is primarily centered in Oregon, where the ship is likely to undergo repairs and where the contractor is based. The contract will support skilled labor in the shipbuilding and repairing sector, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during the midlife extension.
Dependence on a single contractor for a critical asset's extensive overhaul.
Risk of schedule delays impacting NOAA's research timelines.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a thorough evaluation of potential contractors.
The contract duration is substantial, allowing for comprehensive work.

Sector Analysis

The ship building and repairing industry is a critical sector for national infrastructure and defense, involving specialized skills and significant capital investment. NOAA's acquisition of this midlife extension falls within the broader maritime services market, which includes maintenance, repair, and overhaul of vessels. Comparable spending benchmarks for similar vessel refits can vary widely based on vessel size, age, and the complexity of the required upgrades. This contract represents a substantial investment in maintaining a specialized research platform within this sector.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem for this particular award appears minimal, though the prime contractor may engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is generally maintained through contract award databases and public reporting, though specific oversight activities and Inspector General jurisdiction would depend on NOAA's internal policies and the nature of any potential issues.

Related Government Programs

NOAA Vessel Operations
Shipbuilding and Repair Services
Maritime Asset Maintenance
Research Vessel Modernization Programs

Risk Flags

Potential for cost growth due to unforeseen issues during extensive repairs.
Schedule slippage impacting NOAA's operational research plans.
Complexity of integrating new systems with legacy vessel infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $95.4 million to JAG ALASKA INC.. 1305M225C0004 - OSCAR DYSON FSV MIDLIFE EXTENSION PROGRAM

Who is the contractor on this award?

The obligated recipient is JAG ALASKA INC..

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 $95.4 million.

What is the period of performance?

Start: 2025-06-05. End: 2027-12-05.

What is the historical spending pattern for the OSCAR DYSON FSV midlife extension program?

The provided data pertains to a single contract award of $95.4 million for the OSCAR DYSON FSV midlife extension program, with an award date of June 5, 2025, and an expected completion date of December 5, 2027. This suggests that this is a significant, discrete project rather than a recurring expenditure. Without historical data on previous maintenance, repairs, or prior midlife extension efforts for this specific vessel, it is difficult to establish a long-term spending pattern. However, the substantial value of this contract indicates that midlife extensions are major capital investments for NOAA's fleet.

How does the cost of this midlife extension compare to similar NOAA vessel upgrades?

Comparing the $95.4 million cost of the OSCAR DYSON FSV midlife extension requires access to data on similar large-scale refits for NOAA's fleet. Midlife extensions are comprehensive overhauls that can include structural repairs, engine overhauls, system upgrades (navigation, communication, scientific equipment), and habitability improvements. The complexity and age of the vessel, along with the specific scope of work, heavily influence costs. Generally, such extensive projects for research vessels can range from tens of millions to over a hundred million dollars, depending on the vessel's size and the extent of modernization. This contract appears to be within the expected range for a significant midlife overhaul of a major research platform.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, typical performance metrics for a ship midlife extension contract would include adherence to the project schedule, quality of workmanship, compliance with technical specifications, and successful completion of sea trials. The firm-fixed-price nature of the contract implies that meeting these performance standards within the agreed-upon price is paramount. NOAA's contracting officers and technical representatives will monitor progress, conduct inspections, and review documentation to ensure the contractor, JAG ALASKA INC., meets all contractual obligations. Failure to meet these KPIs could result in penalties or withholding of payments.

What is the track record of JAG ALASKA INC. in performing similar large-scale vessel repair and extension contracts?

The provided data identifies JAG ALASKA INC. as the contractor for the OSCAR DYSON FSV midlife extension program. To assess their track record, one would need to examine their past performance on similar contracts, particularly those involving extensive vessel overhauls, midlife extensions, or complex ship repair projects for government or commercial entities. Information on their past project sizes, complexity, on-time delivery, and quality of work would be crucial. A review of federal procurement databases and past performance reviews would offer insights into their capabilities and reliability in executing such significant undertakings.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include unforeseen structural damage discovered during the overhaul, which could lead to cost overruns and schedule delays, despite the firm-fixed-price structure. Technical challenges in integrating new systems with older infrastructure, supply chain disruptions for specialized parts, and labor availability are also risks. Mitigation strategies typically involve thorough initial inspections, robust project management by both the contractor and NOAA, contingency planning, and clear communication channels. The contract's detailed specifications and phased approach to work also help manage risks by breaking down the complex project into manageable stages.

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

Solicitation ID: 1305M224R0081

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3306 SORREL RD, SEWARD, AK, 99664

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

Financial Breakdown

Contract Ceiling: $95,408,666

Exercised Options: $95,408,666

Current Obligation: $95,408,666

Actual Outlays: $9,459,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline