Coast Guard awards $11.8M for boat design, with a 545-day performance period

Contract Overview

Contract Amount: $11,833,562 ($11.8M)

Contractor: Rozema's Boat Works, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-29

End Date: 2027-03-28

Contract Duration: 545 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRST DELIVERY ORDER FOR DESIGN DEVELOPMENT, WHICH CONSIST OF INTEGRATION AND ENGINEERING, THE DESIGN DEVELOPMENT PLAN, AND DESIGN REVIEWS.

Place of Performance

Location: MOUNT VERNON, SKAGIT County, WASHINGTON, 98273

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.8 million to ROZEMA'S BOAT WORKS, INC for work described as: FIRST DELIVERY ORDER FOR DESIGN DEVELOPMENT, WHICH CONSIST OF INTEGRATION AND ENGINEERING, THE DESIGN DEVELOPMENT PLAN, AND DESIGN REVIEWS. Key points: 1. This contract represents the initial delivery order for design development, focusing on integration, engineering, and review processes. 2. The award was made under a full and open competition, suggesting a competitive environment for this specialized service. 3. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The performance period spans over 1.5 years, allowing ample time for the design and engineering phases. 5. The U.S. Coast Guard, part of DHS, is the procuring agency, highlighting a focus on maritime security and operational needs. 6. The contract is for boat building services, a critical component for maintaining and expanding the Coast Guard's fleet capabilities.

Value Assessment

Rating: good

The contract value of $11.8 million for design development appears reasonable given the scope of integration, engineering, and design reviews. Benchmarking against similar design contracts for specialized vessels would provide a more precise value assessment. However, the firm-fixed-price structure suggests a commitment to cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was broad, specific sources may have been considered or excluded based on pre-qualification or other criteria. The number of bidders is not specified, but the designation suggests a competitive process was intended.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more cost-effective solutions.

Public Impact

The U.S. Coast Guard will benefit from advanced design and engineering for its maritime assets. Services delivered include integration, engineering, design development plans, and design reviews. The geographic impact is primarily within the United States, supporting domestic maritime capabilities. This contract supports specialized engineering and design roles, potentially impacting the skilled workforce in the maritime sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design requirements are not clearly defined.
Dependence on contractor expertise for critical design elements.
Risk of delays if design reviews encounter significant issues.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a robust selection process.
Clear performance period provides a defined timeline for deliverables.

Sector Analysis

The maritime industry, particularly the segment focused on naval architecture and marine engineering, is characterized by specialized expertise and often high-value contracts. This award fits within the broader defense and security sector, where the U.S. Coast Guard procures critical assets. Comparable spending benchmarks would involve looking at other design and engineering contracts for patrol boats, cutters, or other specialized vessels within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order, it's possible that larger prime contractors are involved, and subcontracting opportunities for small businesses may exist, particularly in specialized engineering or support roles. Further analysis of the prime contractor's subcontracting plan would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the U.S. Coast Guard contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms and the defined performance period. Transparency is facilitated by the public nature of federal contract awards, though specific details of the design process and reviews may be proprietary.

Related Government Programs

U.S. Coast Guard Vessel Procurement
Department of Homeland Security Acquisition Programs
Naval Architecture and Marine Engineering Services
Federal Boat Building Contracts

Risk Flags

Potential for limited competition due to specialized nature of services.
Risk of schedule delays impacting broader Coast Guard operational readiness.
Need for robust technical oversight to ensure design quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.8 million to ROZEMA'S BOAT WORKS, INC. FIRST DELIVERY ORDER FOR DESIGN DEVELOPMENT, WHICH CONSIST OF INTEGRATION AND ENGINEERING, THE DESIGN DEVELOPMENT PLAN, AND DESIGN REVIEWS.

Who is the contractor on this award?

The obligated recipient is ROZEMA'S BOAT WORKS, INC.

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 $11.8 million.

What is the period of performance?

Start: 2025-09-29. End: 2027-03-28.

What is the track record of Rozema's Boat Works, Inc. with federal contracts, particularly with the U.S. Coast Guard or Department of Homeland Security?

A review of federal procurement data indicates that Rozema's Boat Works, Inc. has received federal contracts, though the volume and scope may vary. Specific details regarding their past performance with the U.S. Coast Guard or the Department of Homeland Security would require a deeper dive into contract databases. Key performance indicators such as on-time delivery, quality of work, and adherence to budget on previous contracts are crucial for assessing their reliability. Understanding their experience with similar vessel types or design phases is also important for evaluating their capability to execute this current delivery order successfully.

How does the $11.8 million value for this design development contract compare to similar contracts for naval architecture and marine engineering services?

Benchmarking this $11.8 million contract requires comparing it to similar design development and engineering contracts for maritime vessels of comparable size and complexity. Factors such as the specific type of vessel (e.g., patrol boat, cutter), the stage of design (concept, preliminary, detailed), and the scope of services (integration, engineering, reviews) significantly influence pricing. Without specific comparable contract data, it's challenging to definitively assess value for money. However, for a first delivery order focused on initial design phases, this amount suggests a substantial undertaking, potentially involving complex integration and engineering challenges.

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

The primary risks associated with this contract include potential delays in the design and engineering phases, scope creep if requirements are not precisely defined, and technical challenges during integration and review. Given the firm-fixed-price nature, cost overruns are primarily borne by the contractor, but delays can still impact program timelines. Mitigation strategies likely involve robust project management by both the contractor and the Coast Guard, clear definition of design requirements and milestones, and regular progress reviews. The Coast Guard's oversight and the contractor's expertise in naval architecture and marine engineering are key to managing these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for specialized maritime design services?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with the need for specialized capabilities. While it allows for a wider pool of potential bidders than a sole-source award, the 'exclusion of sources' aspect suggests that certain criteria were used to narrow down the initial field. This can be effective if the criteria are well-justified and ensure that only capable firms participate, thereby fostering meaningful competition among qualified entities. However, if the exclusion criteria are overly restrictive, it could limit competition and potentially lead to less favorable pricing for the government compared to truly unrestricted full and open competition.

What is the historical spending pattern for boat building and related design services by the U.S. Coast Guard over the past five years?

Analyzing the historical spending patterns of the U.S. Coast Guard for boat building and related design services over the past five years would reveal trends in investment in maritime assets. This includes understanding the frequency and value of contracts awarded for new vessel construction, upgrades, and design/engineering services. Such analysis can highlight periods of increased procurement activity, shifts in technology focus, and the typical contract vehicles used (e.g., IDIQs, delivery orders). Comparing current spending levels to historical averages provides context for the significance of this $11.8 million award and helps in forecasting future budgetary needs for fleet modernization and maintenance.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11130 BAYVIEW EDISON RD, MOUNT VERNON, WA, 98273

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

Financial Breakdown

Contract Ceiling: $11,833,562

Exercised Options: $11,833,562

Current Obligation: $11,833,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02325D93250001

IDV Type: IDC

Timeline