State Department awards $3.2M for interceptors, with no competition, raising value-for-money questions

Contract Overview

Contract Amount: $3,223,785 ($3.2M)

Contractor: Eduardono S.A.S

Awarding Agency: Department of State

Start Date: 2025-09-30

End Date: 2026-12-31

Contract Duration: 457 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERCEPTORS, INL

Plain-Language Summary

Department of State obligated $3.2 million to EDUARDONO S.A.S for work described as: INTERCEPTORS, INL Key points: 1. The contract was awarded on a 'not competed' basis, suggesting potential missed opportunities for cost savings through competitive bidding. 2. The fixed-price contract type offers cost certainty for the government, but the lack of competition may have inflated the price. 3. The duration of 457 days for a purchase order of this value warrants scrutiny regarding project scope and efficiency. 4. The specific nature of 'INTERCEPTORS, INL' suggests a critical or specialized need, but the procurement method lacks transparency. 5. Benchmarking against similar boat-building contracts is crucial to assess if the $3.2M price reflects fair market value. 6. The absence of small business involvement raises questions about broader economic impact and equitable distribution of federal funds.

Value Assessment

Rating: questionable

The contract value of $3.2 million for boat building services appears significant, especially given the lack of competitive bidding. Without comparable contract data or a clear justification for the sole-source award, it is difficult to definitively assess value for money. The firm fixed-price nature provides some cost control, but the absence of competition means the government may not have secured the most advantageous pricing. Further analysis would require understanding the specific technical requirements and market rates for such specialized vessels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not competed' procurement type, indicating that a sole-source justification was likely used. This means that only one vendor, EDUARDONO S.A.S, was solicited or considered for this requirement. While sole-source awards are permissible under specific circumstances (e.g., urgency, unique capabilities), they bypass the standard competitive process. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs, potentially leading to a higher price for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these interceptors due to the absence of a competitive bidding process. Without competing offers, there is less assurance that the selected price is the lowest achievable.

Public Impact

The primary beneficiaries are likely the entities or operations requiring the 'INTERCEPTORS, INL' services, potentially related to border security, interdiction, or law enforcement. The contract will deliver specialized boat building services, likely resulting in the construction or modification of vessels designed for specific operational roles. The geographic impact is not specified but could be domestic or international, depending on the operational deployment of the interceptors. Workforce implications may include employment opportunities within EDUARDONO S.A.S and its supply chain for skilled labor in boat manufacturing and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing and reduced value for taxpayer dollars.
The 'not competed' status requires a strong justification to ensure necessity and prevent potential abuse.
Limited transparency in the procurement process hinders public and congressional oversight.
Absence of small business participation may limit economic opportunities and diversity in contracting.

Positive Signals

Firm fixed-price contract provides cost certainty for the government once awarded.
The specific nature of the requirement might necessitate a specialized contractor, justifying a sole-source award if properly documented.
The contract duration is defined, allowing for project planning and management.

Sector Analysis

The boat building industry is a significant sector within manufacturing, encompassing the design, construction, and repair of watercraft. Federal spending in this area often supports defense, homeland security, and maritime research initiatives. The market can range from small, specialized custom builders to large industrial shipyards. This contract, valued at $3.2 million for specialized interceptors, falls within the mid-range for niche maritime procurements. Comparable spending benchmarks would depend heavily on the specific size, capabilities, and materials required for these interceptors.

Small Business Impact

The data indicates that small business participation was not a factor in this contract, as 'sb' is false and 'ss' is false. This suggests that the contract was not set aside for small businesses, nor were there explicit subcontracting goals for small businesses mentioned. The lack of small business involvement in a contract of this size could mean missed opportunities to foster growth within the small business ecosystem. Future procurements in this area should consider opportunities for small business set-asides or subcontracting plans to ensure broader economic impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General (OIG). The 'not competed' nature of the award necessitates robust justification and documentation to ensure compliance with federal procurement regulations. Transparency regarding the justification for the sole-source award and the evaluation process (if any) is crucial for accountability. Regular performance monitoring and adherence to the firm fixed-price terms will be key oversight mechanisms.

Related Government Programs

Department of Homeland Security Boat Procurement
Coast Guard Vessel Acquisition
Naval Special Warfare Command Craft Procurement
Customs and Border Protection Maritime Operations

Risk Flags

Sole-source award requires strong justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.2 million to EDUARDONO S.A.S. INTERCEPTORS, INL

Who is the contractor on this award?

The obligated recipient is EDUARDONO S.A.S.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-12-31.

What specific capabilities and technical specifications define these 'INTERCEPTORS, INL' that justified a sole-source award?

The provided data does not detail the specific capabilities or technical specifications of the 'INTERCEPTORS, INL'. However, the term 'interceptors' typically refers to high-speed vessels designed for pursuit, interdiction, or patrol operations, often in maritime law enforcement or security contexts. The 'INL' designation likely refers to the Bureau of International Narcotics and Law Enforcement Affairs within the Department of State, suggesting these vessels may be intended for use in counternarcotics or border security missions abroad. A sole-source award would typically be justified by unique design requirements, proprietary technology, or a critical need that only one vendor can fulfill within the required timeframe. Without further documentation, the exact rationale remains unclear, but it implies a specialized requirement beyond standard commercial off-the-shelf vessels.

How does the $3.2 million award compare to similar boat-building contracts awarded by the Department of State or other federal agencies?

Benchmarking this $3.2 million award requires detailed comparison with contracts for vessels of similar size, speed, and capability. The Department of State, along with agencies like Customs and Border Protection (CBP) and the U.S. Coast Guard, frequently procures patrol and interdiction vessels. For instance, CBP has awarded contracts for Response Boats Medium (RBM) and other specialized craft. The price per vessel can vary significantly based on factors like hull material (aluminum vs. composite), propulsion systems (outboard vs. inboard engines), onboard electronics, and mission-specific equipment (e.g., surveillance systems, defensive capabilities). A $3.2 million contract for a single or small number of specialized interceptors could be within market norms if they possess advanced features, but without specific details on EDUARDONO S.A.S's offering, a precise comparison is difficult. The lack of competition further complicates a direct value assessment.

What are the potential risks associated with awarding a contract of this value without competition?

The primary risk associated with awarding a contract of $3.2 million without competition is the potential for overpayment and reduced value for taxpayer money. Without the pressure of competing bids, the selected contractor may not offer the most cost-effective solution. There's also a risk that the government might not be aware of alternative, potentially superior, solutions or technologies available from other vendors. Furthermore, a lack of competition can sometimes indicate barriers to entry for other qualified businesses, potentially stifling innovation and market dynamism in the long run. Ensuring the sole-source justification is robust and accurately reflects a genuine lack of alternatives or unique capabilities is critical to mitigating these risks.

What is the track record of EDUARDONO S.A.S in fulfilling federal contracts, particularly for similar maritime assets?

Information regarding the track record of EDUARDONO S.A.S in fulfilling federal contracts is not provided in the given data. To assess this, one would typically consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past performance, contract history, and any reported issues or successes. Without this historical data, it's challenging to evaluate the contractor's reliability, past performance quality, and experience with delivering similar maritime assets. A thorough review of their federal contract history would be essential for understanding their capacity and suitability for this specific requirement, especially in the context of a sole-source award.

What are the implications of the firm fixed-price (FFP) contract type in this specific 'not competed' scenario?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. In this 'not competed' scenario, the FFP provides the government with cost certainty, meaning the total cost of the contract will not exceed $3.2 million. However, the risk shifts entirely to the contractor; if their costs are higher than anticipated, their profit margin shrinks, and if lower, their profit increases. The implication of FFP combined with a sole-source award is that the government has locked in a price without market validation. While it protects against cost overruns, it doesn't guarantee the price itself is competitive or represents the best value achievable through a competitive process.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19GE5025Q0115

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARRERA 15 88 21 OFICINA 401, BOGOTA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,834,801

Exercised Options: $3,834,801

Current Obligation: $3,223,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline