DHS Awards $26.4M for Rolls-Royce Mission Critical Spares, Lacking Competition

Contract Overview

Contract Amount: $26,433,846 ($26.4M)

Contractor: Bird-Johnson Propeller Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-03

End Date: 2026-08-04

Contract Duration: 1,827 days

Daily Burn Rate: $14.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROLLS-ROYCE MISSION CRITICAL CLASS SPARES INCLUDES THE MANUFACTURING, INSPECTION, ACCEPTANCE TESTING, PRESERVATION, PACKAGING, PACKING, MARKING, AND SHIPPING OF WMSL PROPULSION AND BOW THRUSTER IN SUPPORT OF NATIONAL SECURITY CUTTER (NSC) FLEET.

Place of Performance

Location: WALPOLE, NORFOLK County, MASSACHUSETTS, 02081

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.4 million to BIRD-JOHNSON PROPELLER COMPANY, LLC for work described as: ROLLS-ROYCE MISSION CRITICAL CLASS SPARES INCLUDES THE MANUFACTURING, INSPECTION, ACCEPTANCE TESTING, PRESERVATION, PACKAGING, PACKING, MARKING, AND SHIPPING OF WMSL PROPULSION AND BOW THRUSTER IN SUPPORT OF NATIONAL SECURITY CUTTER (NSC) FLEET. Key points: 1. Significant award for critical propulsion spares for the National Security Cutter fleet. 2. Sole-source nature raises concerns about price discovery and potential overspending. 3. The contract value is substantial, highlighting the importance of efficient procurement. 4. Focus on manufacturing and testing underscores the complexity of defense-related components.

Value Assessment

Rating: questionable

The $26.4M contract value for mission-critical spares is difficult to assess without competitive benchmarks. The lack of competition suggests potential for higher pricing than if multiple vendors were involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential spares.

Public Impact

Ensures operational readiness of the U.S. Coast Guard's National Security Cutter fleet. Supports critical defense infrastructure and national security missions. Potential for increased costs due to sole-source procurement impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for inflated pricing.
Long contract duration (4 years).

Positive Signals

Supports critical national security assets.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under fabricated metal product manufacturing, specifically for propulsion and bow thruster spares. Defense-related procurements often involve specialized components with limited supplier bases, potentially leading to higher costs.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The nature of mission-critical spares for large vessels often favors established, larger manufacturers.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The U.S. Coast Guard should have robust internal controls to validate the necessity and cost-effectiveness of such procurements.

Related Government Programs

All Other Miscellaneous Fabricated Metal Product Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
Long-term dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.4 million to BIRD-JOHNSON PROPELLER COMPANY, LLC. ROLLS-ROYCE MISSION CRITICAL CLASS SPARES INCLUDES THE MANUFACTURING, INSPECTION, ACCEPTANCE TESTING, PRESERVATION, PACKAGING, PACKING, MARKING, AND SHIPPING OF WMSL PROPULSION AND BOW THRUSTER IN SUPPORT OF NATIONAL SECURITY CUTTER (NSC) FLEET.

Who is the contractor on this award?

The obligated recipient is BIRD-JOHNSON PROPELLER COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2021-08-03. End: 2026-08-04.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's unclear if other vendors could have met the requirements. Agencies are expected to document thorough market research to support sole-source decisions, ensuring competition is pursued whenever feasible to achieve best value.

How does the unit cost of these spares compare to similar components or previous procurements?

Benchmarking the per-unit cost is challenging without access to historical data or comparable contract awards. Given the sole-source nature, it's crucial for the agency to have performed rigorous cost analysis, potentially using independent government cost estimates, to validate the reasonableness of the pricing against industry standards or previous buys.

What measures are in place to ensure the quality and reliability of these mission-critical spares?

The contract specifies manufacturing, inspection, and acceptance testing, which are standard quality assurance measures. The firm fixed-price structure incentivizes the contractor to deliver conforming goods. However, ongoing government oversight and rigorous testing protocols are essential to guarantee the performance of these critical components.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 NORFOLK ST, WALPOLE, MA, 02081

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,433,846

Exercised Options: $26,433,846

Current Obligation: $26,433,846

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline