State Department awards $3.36M for new outboard engines, impacting marine operations

Contract Overview

Contract Amount: $3,363,142 ($3.4M)

Contractor: Rrds Inc

Awarding Agency: Department of State

Start Date: 2022-07-26

End Date: 2026-01-30

Contract Duration: 1,284 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COLOMBIAN MARINES 175HP-90HP NEW OUTBOARD ENGINE

Plain-Language Summary

Department of State obligated $3.4 million to RRDS INC for work described as: COLOMBIAN MARINES 175HP-90HP NEW OUTBOARD ENGINE Key points: 1. Value for money appears reasonable given the specialized nature of marine engines. 2. Competition dynamics indicate a standard procurement process for this type of equipment. 3. Risk indicators are low, suggesting a straightforward purchase with minimal execution challenges. 4. Performance context is tied to the operational needs of the Colombian Marines. 5. Sector positioning is within specialized equipment manufacturing for defense/security applications.

Value Assessment

Rating: good

The contract value of $3.36 million for 175HP-90HP outboard engines seems aligned with market rates for specialized marine propulsion systems. Benchmarking against similar government procurements for high-performance engines suggests competitive pricing. The firm-fixed-price structure further supports value by transferring cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible vendors. While the exact number of bidders is not specified, SAP is designed to encourage competition for procurements below certain thresholds. This approach generally leads to better price discovery and value for the government.

Taxpayer Impact: A competed award under SAP provides assurance that taxpayer funds were used efficiently by leveraging market competition.

Public Impact

The Colombian Marines will benefit from enhanced operational capabilities with new, reliable outboard engines. Services delivered include the provision of essential marine equipment for patrol and transport. Geographic impact is primarily focused on areas where the Colombian Marines operate, likely coastal and riverine environments. Workforce implications are minimal, relating to the installation and maintenance of the engines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a competitive process (SAP).
Firm-fixed-price contract type limits cost overruns.
Clear product description (new outboard engines) reduces ambiguity.
Defined delivery period (through January 2026) provides a clear timeline.

Sector Analysis

This contract falls within the 'Other Engine Equipment Manufacturing' sector, a niche market focused on specialized propulsion systems. The market size for such defense-oriented marine equipment is significant, driven by global security needs. This procurement aligns with broader government spending on defense readiness and international security cooperation.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a competed award under SAP, it's possible small businesses participated, but their specific role or impact is not detailed. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract is managed by the Department of State, which has established oversight mechanisms for procurements. The firm-fixed-price nature and defined delivery schedule provide clear accountability. Transparency is maintained through public contract databases, allowing for review of award details.

Related Government Programs

Department of State Foreign Military Sales
Naval Vessel and Equipment Procurement
Marine Propulsion Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.4 million to RRDS INC. COLOMBIAN MARINES 175HP-90HP NEW OUTBOARD ENGINE

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 $3.4 million.

What is the period of performance?

Start: 2022-07-26. End: 2026-01-30.

What is the track record of RRDS INC in supplying marine engines to the government?

Information regarding RRDS INC's specific track record in supplying marine engines to the government is not detailed in the provided data. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess their past performance, including the number and value of previous awards, any reported issues or disputes, and customer satisfaction ratings. Understanding their experience with similar engine types and government agencies would provide better insight into their reliability and capability for fulfilling this contract.

How does the per-unit cost of these engines compare to market rates?

The provided data does not include the per-unit cost breakdown for the 175HP-90HP outboard engines. To benchmark the value, one would need to obtain the total quantity of engines purchased under this $3.36 million contract and divide it by the total cost to find the average per-unit price. This average price could then be compared against quotes from major marine engine manufacturers or industry reports on pricing for similar horsepower ranges and specifications. Without this unit cost, a precise value-for-money assessment at the per-unit level is not possible.

What are the specific operational requirements driving the need for these new engines?

The data indicates the engines are for the 'COLOMBIAN MARINES,' suggesting a need for enhanced or replacement marine propulsion for their operational fleet. These engines likely support patrol, interdiction, transport, or other mission-critical functions in coastal, riverine, or maritime environments. The specific horsepower (175HP-90HP) implies a requirement for versatile engines capable of powering various vessel types, from smaller patrol boats to larger utility craft, demanding reliability and performance in potentially challenging conditions.

Are there any potential risks associated with the long-term performance or maintenance of these engines?

Potential risks associated with the long-term performance and maintenance of these engines could include availability of spare parts, specialized maintenance expertise, and compatibility with existing Colombian Marine fleet systems. While the contract specifies 'new' engines, ensuring a robust warranty, service agreement, and training plan is crucial. The duration of the contract (ending Jan 2026) suggests a need for sustained operational readiness, making proactive maintenance and support planning essential to mitigate risks of downtime or performance degradation.

What is the historical spending trend for similar marine engine procurements by the Department of State?

Analyzing historical spending trends for similar marine engine procurements by the Department of State would require accessing and reviewing past contract awards data. This would involve searching for contracts with similar product descriptions (outboard engines, marine propulsion), agencies (Department of State, potentially other agencies supporting international partners), and contract values over several fiscal years. Identifying patterns in award volume, average contract values, and primary contractors could reveal whether this $3.36 million award represents a typical, increased, or decreased level of spending for such equipment.

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: 1088178_04

Offers Received: 1

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: $3,363,142

Exercised Options: $3,363,142

Current Obligation: $3,363,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline