Coast Guard Awards $83.7M Inland Buoy Tender Contract to Birdon America Inc

Contract Overview

Contract Amount: $83,690,228 ($83.7M)

Contractor: Birdon America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-17

End Date: 2028-03-22

Contract Duration: 1,009 days

Daily Burn Rate: $82.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD INLAND BUOY TENDER (WLR) 1801

Place of Performance

Location: BAYOU LA BATRE, MOBILE County, ALABAMA, 36509

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $83.7 million to BIRDON AMERICA INC for work described as: AWARD INLAND BUOY TENDER (WLR) 1801 Key points: 1. Significant award for ship building and repair, impacting the maritime sector. 2. Full and open competition after exclusion of sources suggests a specific justification for the procurement method. 3. The contract's firm fixed price structure aims to control costs. 4. Potential for future follow-on orders or related contracts within the Coast Guard's fleet modernization efforts.

Value Assessment

Rating: good

The award of $83.7 million for a buoy tender appears reasonable given the specialized nature of ship construction. Benchmarking against similar complex vessel procurements would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, specific criteria or prior exclusions narrowed the field. This method can impact price discovery if the pool of eligible bidders is significantly reduced.

Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, though the limited competition aspect warrants scrutiny to ensure value for money.

Public Impact

Enhances U.S. Coast Guard's operational capabilities for maintaining aids to navigation. Supports critical maritime infrastructure and safety on inland waterways. Contributes to the shipbuilding and repair industry, potentially creating jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification
Potential for cost overruns if scope expands beyond initial fixed price

Positive Signals

Firm fixed price contract
Supports critical national infrastructure

Sector Analysis

This contract falls within the Ship Building and Repairing sector (NAICS 336611), a capital-intensive industry requiring specialized expertise. Spending benchmarks for similar naval or maritime vessel construction projects are typically in the millions to hundreds of millions of dollars.

Small Business Impact

The contract was awarded to Birdon America Inc., and the data indicates the small business set-aside flag is false. Further analysis would be needed to determine if subcontracting opportunities for small businesses exist within this large prime contract.

Oversight & Accountability

The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for overseeing this contract. Standard oversight mechanisms for shipbuilding contracts, including progress reviews and quality inspections, should be in place to ensure compliance and delivery.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition
Potential for scope creep
Long contract duration (over 2.5 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $83.7 million to BIRDON AMERICA INC. AWARD INLAND BUOY TENDER (WLR) 1801

Who is the contractor on this award?

The obligated recipient is BIRDON AMERICA 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 $83.7 million.

What is the period of performance?

Start: 2025-06-17. End: 2028-03-22.

What specific factors led to the exclusion of sources in the full and open competition process, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical requirements, past performance, or unique capabilities are necessary, limiting the eligible bidder pool. This can sometimes lead to higher prices due to reduced competition. A detailed review of the solicitation documents and award justification would clarify the reasons and their pricing implications.

What are the key performance metrics and quality assurance measures for this buoy tender to ensure its effectiveness and longevity?

Key performance metrics would likely include operational readiness, fuel efficiency, cargo capacity, and maneuverability. Quality assurance measures would involve rigorous inspections during construction, material testing, and sea trials to ensure the vessel meets all design specifications and safety standards mandated by the Coast Guard.

Are there any planned future procurements or options within this contract that could lead to increased spending beyond the initial $83.7 million?

While the current award is for $83.7 million, many large vessel contracts include options for additional vessels, spare parts, training, or extended warranties. Reviewing the contract's 'Options' clause and 'Contract Type' details is crucial to understanding the total potential value and future taxpayer impact.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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: 4965 KINGSTON ST, DENVER, CO, 80239

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

Financial Breakdown

Contract Ceiling: $83,690,228

Exercised Options: $83,690,228

Current Obligation: $83,690,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02323D93270001

IDV Type: IDC

Timeline