DHS Coast Guard Awards $5.5M for Diesel Engine Refurbishment to Fairbanks Morse, LLC

Contract Overview

Contract Amount: $5,509,458 ($5.5M)

Contractor: Fairbanks Morse, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-19

End Date: 2026-07-30

Contract Duration: 741 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INSPECTION AND REFURBISHMENT OF MAIN DIESEL ENGINES IN SUPPORT OF 270' MAJOR MAINTENANCE AVAILABILITY PROGRAM

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77041

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.5 million to FAIRBANKS MORSE, LLC for work described as: INSPECTION AND REFURBISHMENT OF MAIN DIESEL ENGINES IN SUPPORT OF 270' MAJOR MAINTENANCE AVAILABILITY PROGRAM Key points: 1. Significant contract for essential vessel maintenance. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of extended downtime if refurbishment is delayed or inadequate. 4. Focus on critical maritime infrastructure within the Defense sector.

Value Assessment

Rating: fair

The contract value of $5.5M for engine refurbishment appears reasonable given the specialized nature of the work. However, without competitive bids, it's difficult to definitively assess if this represents the best possible price.

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 higher costs than if multiple vendors had submitted bids.

Taxpayer Impact: Taxpayer funds are being used for this critical maintenance. The lack of competition means there's a risk of overpayment, impacting the efficient use of public money.

Public Impact

Ensures operational readiness of Coast Guard vessels. Supports critical maritime security and safety missions. Potential impact on response times if maintenance is not completed efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Dependence on a single supplier

Positive Signals

Essential service for national security
Supports critical infrastructure

Sector Analysis

This contract falls within the Ship Building and Repairing sector, which is crucial for maintaining national defense and maritime capabilities. Spending benchmarks in this area are highly variable based on the complexity of the repairs.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

Oversight is crucial to ensure the quality and timeliness of the refurbishment, especially given the sole-source nature of the award. Regular progress reports and quality checks are essential.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of bidding.
Risk of delays impacting vessel availability.
No apparent small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.5 million to FAIRBANKS MORSE, LLC. INSPECTION AND REFURBISHMENT OF MAIN DIESEL ENGINES IN SUPPORT OF 270' MAJOR MAINTENANCE AVAILABILITY PROGRAM

Who is the contractor on this award?

The obligated recipient is FAIRBANKS MORSE, 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 $5.5 million.

What is the period of performance?

Start: 2024-07-19. End: 2026-07-30.

What is the justification for the sole-source award, and were any attempts made to solicit bids from other qualified vendors?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's unclear if alternative vendors were considered or if specific circumstances necessitated awarding the contract directly to Fairbanks Morse, LLC. Further inquiry into the procurement process is warranted.

What are the potential risks associated with relying on a single vendor for such critical engine refurbishment?

The primary risks include potential price inflation due to lack of competition, limited options if the vendor faces production issues or delays, and a lack of alternative solutions if the quality of work is subpar. This dependence can impact the Coast Guard's operational readiness and budget predictability.

How will the effectiveness of this refurbishment be measured to ensure long-term reliability and performance of the diesel engines?

Effectiveness should be measured through rigorous testing protocols post-refurbishment, including performance benchmarks, fuel efficiency tests, and endurance trials. Long-term monitoring of engine performance data and maintenance records will also be crucial to assess the lasting impact of the work.

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

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12253 FM 529 RD, HOUSTON, TX, 77041

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

Financial Breakdown

Contract Ceiling: $5,509,458

Exercised Options: $5,509,458

Current Obligation: $5,509,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02321DAVS00400

IDV Type: IDC

Timeline