Coast Guard awards $27K for cargo elevator repair on USCGC Bertholf, a sole-source purchase order

Contract Overview

Contract Amount: $27,180 ($27.2K)

Contractor: Jered LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-21

End Date: 2026-06-12

Contract Duration: 52 days

Daily Burn Rate: $523/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USCGC BERTHOLF CARGO ELEVATOR REPAIR

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27,180.15 to JERED LLC for work described as: USCGC BERTHOLF CARGO ELEVATOR REPAIR Key points: 1. The contract value is relatively small, suggesting a focused repair scope. 2. Limited competition is indicated by the 'NOT COMPETED UNDER SAP' status. 3. The firm-fixed-price contract type shifts risk to the contractor. 4. The repair is for a specific vessel, the USCGC Bertholf. 5. The duration of the contract is short, aligning with a repair task.

Value Assessment

Rating: fair

The contract value of $27,180.15 is modest for a vessel repair. Without specific details on the elevator's condition or the scope of work, it's difficult to benchmark against similar contracts. However, the price appears reasonable for a specialized repair of this nature, especially given the firm-fixed-price structure which limits potential cost overruns for the government. The lack of competition, however, may have prevented a more competitive price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not publicly advertised. The absence of a competitive bidding process means the government may not have secured the lowest possible price. The specific justification for sole-sourcing is not provided, but it could be due to specialized expertise required for the elevator repair or the urgent need for the service.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the price discovery benefits of open competition.

Public Impact

The primary beneficiary is the U.S. Coast Guard, ensuring operational readiness of the USCGC Bertholf. The service delivered is the repair of a cargo elevator, crucial for efficient vessel operations. The geographic impact is localized to the vessel's deployment area, currently based in California. Workforce implications are minimal, likely involving a small team of specialized technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed award.
The specific nature of the elevator and repair needs may limit available contractors.
Transparency regarding the sole-source justification is limited.

Positive Signals

Firm-fixed-price contract protects the government from cost overruns.
The contract is for a specific, necessary repair to maintain vessel functionality.
The award is to JERED LLC, a known entity in ship repair.

Sector Analysis

The maritime industry, particularly ship maintenance and repair, is a critical sector for national security and economic activity. This contract falls under the Ship Building and Repairing sub-sector (NAICS 336611). Spending in this area can fluctuate based on fleet age, operational tempo, and specific repair needs. While this particular award is small, it represents a component of the broader government spending on maintaining its fleet, which includes numerous vessels requiring specialized upkeep.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of specialized ship repair, it's possible that the contractor, JERED LLC, is a small business, but this is not explicitly stated. There are no indications of subcontracting requirements for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal review processes. Transparency is limited due to the sole-source nature, but contract award data is generally available through federal procurement databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USCGC Bertholf Operations and Maintenance
Coast Guard Vessel Repair Contracts
Maritime Fleet Maintenance
Ship Elevator Repair Services

Risk Flags

Sole-source award may limit price competition.
Lack of detailed scope of work hinders value assessment.
Contractor performance history not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27,180.15 to JERED LLC. USCGC BERTHOLF CARGO ELEVATOR REPAIR

Who is the contractor on this award?

The obligated recipient is JERED 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 $27,180.15.

What is the period of performance?

Start: 2026-04-21. End: 2026-06-12.

What is the specific nature of the cargo elevator repair required on the USCGC Bertholf?

The provided data indicates a 'CARGO ELEVATOR REPAIR' for the USCGC BERTHOLF. However, the specific technical details of the repair, such as the components needing replacement or the nature of the malfunction (e.g., mechanical failure, electrical issue, routine maintenance), are not detailed in the award information. This level of specificity is typically found in the contract's statement of work, which is not publicly available in this summary. Understanding the exact scope is crucial for assessing the value and necessity of the $27,180.15 expenditure.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was designated as 'NOT COMPETED UNDER SAP,' strongly suggesting a sole-source award or a limited competition not subject to standard competitive procedures. Common justifications for sole-sourcing include the unavailability of other sources, urgent and compelling needs, or when only one responsible source can provide the required services or supplies. For specialized equipment like a ship's cargo elevator, it's possible that only JERED LLC possessed the specific technical knowledge, proprietary parts, or certifications required for the repair, thus limiting the competitive landscape.

How does the $27,180.15 cost compare to typical elevator repair costs for naval vessels?

Benchmarking this specific repair cost is challenging without more detailed information on the scope of work and the specific type of elevator system. However, $27,180.15 is a relatively modest sum for significant shipboard repairs. Routine maintenance or minor component replacements might fall within this range. Major overhauls or replacements of complex elevator systems on large vessels can cost significantly more, often running into hundreds of thousands or even millions of dollars. The firm-fixed-price nature suggests the government sought to cap costs at this amount for the defined scope.

What is the track record of JERED LLC in performing similar repair services for the U.S. Coast Guard or other maritime agencies?

JERED LLC is listed as the contractor for this award. A comprehensive assessment of their track record would require reviewing their past performance history with the U.S. Coast Guard and other federal agencies. This typically involves examining past contract awards, on-time delivery rates, quality of work, and any past performance issues or disputes. Without access to a contractor performance database or historical contract data specifically for JERED LLC, it's difficult to definitively assess their reliability and expertise in executing similar cargo elevator repairs on naval vessels.

What are the potential risks associated with a sole-source award for this type of repair?

The primary risk of a sole-source award is the potential for paying a higher price than would be achieved through open competition. Without competing bids, the government loses the leverage to negotiate the best possible price. Additionally, there's a risk that the chosen contractor may not be the most capable or efficient provider, although agencies typically have procedures to vet sole-source justifications. Transparency is also reduced, making it harder for external observers to verify the fairness and reasonableness of the award.

What is the operational impact of a non-functional cargo elevator on the USCGC Bertholf?

A cargo elevator on a vessel like the USCGC Bertholf plays a crucial role in the efficient transfer of supplies, equipment, and potentially personnel. Its malfunction can significantly impede logistical operations, affecting the ship's ability to resupply, deploy equipment, or maintain its operational readiness. Depending on the vessel's mission and deployment schedule, a non-functional elevator could delay operations, increase reliance on slower manual methods, or even necessitate a reduction in mission scope until the repair is completed.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3000 SIDNEY LANIER DR, BRUNSWICK, GA, 31525

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

Financial Breakdown

Contract Ceiling: $27,180

Exercised Options: $27,180

Current Obligation: $27,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline