State Department awards $2.6M for marine engines and support, with 2 bidders

Contract Overview

Contract Amount: $2,612,496 ($2.6M)

Contractor: Rrds Inc

Awarding Agency: Department of State

Start Date: 2022-02-24

End Date: 2025-09-30

Contract Duration: 1,314 days

Daily Burn Rate: $2.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INL BOGOTA - MERCURY VERADO 350 HP OUTBOARDS (54 EA), RIGGING KITS (18 EA), MANUALS (21 EA), SPARE PARTS, SPECIAL TOOLING, TRAINING, AND INSTALLATION.

Plain-Language Summary

Department of State obligated $2.6 million to RRDS INC for work described as: INL BOGOTA - MERCURY VERADO 350 HP OUTBOARDS (54 EA), RIGGING KITS (18 EA), MANUALS (21 EA), SPARE PARTS, SPECIAL TOOLING, TRAINING, AND INSTALLATION. Key points: 1. The contract value appears reasonable given the scope of marine engines, rigging, parts, and training. 2. Competition was limited to two bidders, suggesting potential for higher pricing than a more open process. 3. The contract duration of over three years indicates a sustained need for these specialized marine assets. 4. This award falls within the 'Other Engine Equipment Manufacturing' sector, a niche but essential area for certain government operations. 5. The firm-fixed-price structure shifts cost risk to the contractor, which is generally favorable for the government.

Value Assessment

Rating: good

The total award of $2.61 million for 54 outboard engines, rigging kits, spare parts, tooling, training, and installation seems to align with market expectations for high-performance marine equipment and associated services. While specific per-unit costs for the engines are not detailed, the overall package price appears competitive for a government procurement of this nature, especially considering the inclusion of specialized support. Benchmarking against similar large-scale marine equipment procurements for government agencies would provide further validation, but the initial assessment suggests fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), with two offers received. While SAP is designed for efficiency in procuring goods and services below certain thresholds, the limited number of bidders (two) suggests that the competition may not have been as robust as a full and open competition. This level of competition can sometimes lead to less aggressive pricing compared to scenarios with a larger pool of interested and capable vendors. The agency's justification for using SAP and the limited competition would be important to review for full transparency.

Taxpayer Impact: With only two bidders, taxpayers may have missed out on potential cost savings that could have been achieved through broader market engagement. The limited competition increases the risk of paying a premium for the goods and services procured.

Public Impact

The primary beneficiaries are likely personnel within the Department of State, potentially including those involved in maritime security, interdiction, or operational support in regions requiring robust watercraft. The contract delivers essential marine propulsion systems (outboard engines), along with critical support elements like rigging, spare parts, specialized tooling, and training. The geographic impact is not specified but is likely tied to operational needs in coastal or riverine environments where the State Department conducts its missions. The provision of training and installation services implies a focus on ensuring the effective and safe operation of the new equipment by government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have restricted price discovery and potentially increased costs for taxpayers.
The use of Simplified Acquisition Procedures (SAP) for a contract of this value warrants scrutiny to ensure adequate market research was performed.
Lack of detailed breakdown on per-unit costs for engines makes independent value assessment challenging.

Positive Signals

Firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
Inclusion of training and spare parts ensures operational readiness and reduces future unplanned expenditures.
The contractor, RRDS INC, has a track record of performing government contracts, suggesting some level of reliability.

Sector Analysis

The 'Other Engine Equipment Manufacturing' sector encompasses a wide range of specialized engine components and systems not typically categorized under broader automotive or aerospace classifications. This contract for high-performance marine outboard engines serves a specific operational need, likely for patrol, transport, or specialized missions in maritime environments. Comparable spending benchmarks would typically involve analyzing procurements of similar engine types (e.g., commercial or military-grade outboards) by agencies like the Coast Guard, Navy, or Customs and Border Protection, considering factors like horsepower, quantity, and included support services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false) and does not mention any small business subcontracting requirements (sb: false). Therefore, this procurement does not appear to directly benefit the small business ecosystem through set-asides. The prime contractor, RRDS INC, is not identified by size, but the nature of the procurement suggests it may be a larger entity or one capable of handling significant equipment and support packages. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officer and program managers. As a purchase order issued under SAP, the oversight might be less formalized than for larger, more complex contracts. Accountability is established through the firm-fixed-price terms, requiring delivery of specified goods and services. Transparency is generally facilitated by public contract databases, though detailed performance metrics and internal oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State - Marine Vessel Procurement
Department of Homeland Security - Maritime Patrol Equipment
U.S. Coast Guard - Small Boat Acquisition
Department of Defense - Naval Support Equipment

Risk Flags

Limited Competition
Potential for Price Inflation
SAP Threshold Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.6 million to RRDS INC. INL BOGOTA - MERCURY VERADO 350 HP OUTBOARDS (54 EA), RIGGING KITS (18 EA), MANUALS (21 EA), SPARE PARTS, SPECIAL TOOLING, TRAINING, AND INSTALLATION.

Who is the contractor on this award?

The obligated recipient is RRDS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2022-02-24. End: 2025-09-30.

What is the specific performance history of RRDS INC with the Department of State and other federal agencies?

RRDS INC has a history of receiving federal contracts, primarily from agencies such as the Department of State and the Department of the Army. Analysis of past performance indicates a pattern of awards for equipment, parts, and services, including marine-related items. While specific details on past contract performance quality, timeliness, and adherence to specifications require deeper investigation into contract close-out reports and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the consistent award of contracts suggests a baseline level of capability and acceptance by federal agencies. However, a comprehensive review would be necessary to identify any significant past performance issues or commendations that could inform the risk assessment of this current award.

How does the total contract value of $2.61 million compare to similar procurements of marine engines and support by the Department of State?

Comparing the $2.61 million award to similar Department of State procurements requires access to a comprehensive database of past contracts. However, based on the description (54 high-horsepower outboard engines, rigging, parts, tooling, training, installation), this appears to be a significant investment. Typically, large orders of specialized marine equipment for government use, especially those including comprehensive support packages, can range from hundreds of thousands to several million dollars. Factors influencing the value include engine horsepower, brand, quantity, complexity of rigging, extent of spare parts, and the scope of training and installation. Without direct comparable data points for identical engine models and quantities, a precise benchmark is difficult, but the value seems commensurate with acquiring a fleet of specialized operational assets.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential cost overruns if the firm-fixed-price (FFP) structure is not adequately managed by the contractor, delivery delays impacting operational readiness, and performance issues with the engines or support services. Mitigation strategies are embedded within the contract: the FFP structure places cost risk on RRDS INC. Delivery schedules and performance specifications are defined, with potential penalties for non-compliance. The inclusion of spare parts and training aims to ensure long-term operational effectiveness and reduce the likelihood of performance degradation. Furthermore, the Department of State's oversight mechanisms, including contract administration and potential inspections, serve to monitor progress and address issues proactively.

What is the expected effectiveness of the procured marine engines and support in fulfilling the Department of State's mission requirements?

The effectiveness hinges on the suitability of the Mercury Verado 350 HP outboards for the intended operational environment and mission tasks, which are not explicitly detailed. These engines are known for their power, reliability, and advanced features, suggesting they are suitable for demanding maritime operations such as patrol, interdiction, or transport in potentially challenging conditions. The provision of rigging kits, spare parts, specialized tooling, and comprehensive training is crucial for ensuring the engines can be effectively deployed, maintained, and repaired, thereby maximizing their operational lifespan and mission capability. If the engines and support align with the specific requirements of the State Department's field operations, they should significantly enhance the agency's maritime capacity.

How has federal spending on 'Other Engine Equipment Manufacturing' or similar marine propulsion systems evolved over the past five years?

Analyzing federal spending trends in 'Other Engine Equipment Manufacturing' or specifically marine propulsion systems requires detailed data aggregation and analysis. Generally, spending in defense and security-related sectors, which often includes maritime assets, can fluctuate based on geopolitical conditions, emerging threats, and agency budget priorities. Procurements for patrol boats, support vessels, and their propulsion systems are common across agencies like the Department of Homeland Security (Coast Guard, CBP), Department of Defense (Navy, Marines), and Department of State. An upward trend might be observed if there's an increased focus on border security, counter-narcotics operations, or overseas presence requiring robust maritime capabilities. Conversely, budget constraints or shifts in strategic focus could lead to decreased spending.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM21Q0113

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12 GOODYEAR STE 100, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $2,619,603

Exercised Options: $2,619,603

Current Obligation: $2,612,496

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline