DHS awards $11.3M for ship repair, with 7 bidders competing for the 2-month contract

Contract Overview

Contract Amount: $11,300 ($11.3K)

Contractor: Lyceum Dynamics LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-24

End Date: 2026-04-24

Contract Duration: 59 days

Daily Burn Rate: $192/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HAUL OUT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11,300 to LYCEUM DYNAMICS LLC for work described as: HAUL OUT Key points: 1. The contract value of $11.3 million for a 2-month period suggests a potentially high daily rate for ship repair services. 2. With 7 bidders, the competition level indicates a healthy market for this type of service, which can drive better pricing. 3. The fixed-price contract type aims to control costs, but the short duration may limit opportunities for significant cost savings. 4. The award to Lyceum Dynamics LLC falls within the Ship Building and Repairing sector, a critical area for maritime operations. 5. The contract's focus on ship repair highlights the ongoing need for maintenance to ensure operational readiness of the U.S. Coast Guard fleet.

Value Assessment

Rating: fair

The contract value of $11.3 million for a 59-day period equates to approximately $191,525 per day. Benchmarking this against similar ship repair contracts is challenging without more specific details on the scope of work. However, for a short-term, focused repair effort, this daily rate appears on the higher end, suggesting a need to scrutinize the specific services rendered to ensure value for money. The firm fixed-price nature provides cost certainty, but the overall value will depend on the efficiency and effectiveness of the repairs performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than micro-purchases but is less formal than full and open competition for larger contracts. The participation of 7 bidders indicates a reasonable level of market interest and competition for this requirement. This suggests that the agency was able to solicit offers from multiple sources, which generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The competition among 7 bidders is positive for taxpayers, as it increases the likelihood of receiving a fair market price for the ship repair services. A competitive environment helps prevent overcharging and encourages contractors to offer their best value propositions.

Public Impact

The U.S. Coast Guard benefits directly through the maintenance and repair of its vessels, ensuring operational readiness. The services delivered include essential ship maintenance and repair, crucial for the safety and effectiveness of maritime operations. The geographic impact is primarily in California, where the U.S. Coast Guard facilities are located and where the repairs will likely be performed. The contract supports the maritime industry workforce involved in ship building and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond the initial fixed-price agreement.
The short duration of the contract may lead to rushed work or insufficient time for thorough quality assurance.
Dependence on a single contractor for critical repairs could pose a risk if performance issues arise.

Positive Signals

The use of firm fixed-price contract type helps to establish cost certainty.
Multiple bidders (7) indicate a competitive marketplace and potential for good value.
The contract is awarded to a specific entity, Lyceum Dynamics LLC, suggesting they met the required qualifications.

Sector Analysis

The Ship Building and Repairing sector (NAICS 336611) is a vital component of the U.S. industrial base, supporting both commercial and defense maritime needs. This contract falls within a niche area focused on maintaining the operational readiness of specialized vessels. Spending in this sector can fluctuate based on fleet modernization programs, maintenance cycles, and geopolitical demands. Comparable spending benchmarks would typically involve analyzing the costs of similar repair services for vessels of comparable size and complexity across different government agencies or commercial entities.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of ship repair, which can require specialized facilities and expertise, it's possible that larger firms may dominate this market. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if subcontracting opportunities were made available.

Oversight & Accountability

As a purchase order awarded under Simplified Acquisition Procedures, oversight may be less formalized than for larger, more complex contracts. However, the U.S. Coast Guard is expected to have internal quality assurance personnel to monitor performance and ensure compliance with the contract terms. Transparency is generally maintained through contract award databases, but detailed performance reports or Inspector General involvement would depend on specific issues or audits.

Related Government Programs

Ship Maintenance and Repair Services
U.S. Coast Guard Vessel Operations
Maritime Industry Support Contracts
Defense Logistics Agency (DLA) Ship Repair Contracts

Risk Flags

Potential for high daily rate
Short contract duration may impact quality assurance
Limited scope details for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11,300 to LYCEUM DYNAMICS LLC. HAUL OUT

Who is the contractor on this award?

The obligated recipient is LYCEUM DYNAMICS 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 $11,300.

What is the period of performance?

Start: 2026-02-24. End: 2026-04-24.

What is the specific scope of work for this $11.3 million ship repair contract?

The provided data indicates the contract is for 'HAUL OUT' services and falls under NAICS code 336611 (Ship Building and Repairing). However, the specific details of the repair work, such as the type of maintenance, specific components to be serviced, or the extent of the haul-out process, are not detailed in the summary data. Understanding the precise scope is crucial for accurately benchmarking the cost against industry standards and assessing the value for money. Without this granular detail, it's difficult to determine if the $11.3 million award is commensurate with the services rendered.

How does the daily rate of approximately $191,525 compare to industry benchmarks for similar ship repair services?

Benchmarking the daily rate of approximately $191,525 requires detailed knowledge of the specific type of vessel, the complexity of the repairs, and the geographic location of the service. Ship repair costs can vary significantly based on these factors. For routine maintenance on smaller vessels, this rate might be considered high. However, for specialized repairs on larger or more complex vessels, particularly those requiring dry-docking and extensive work, this rate could be within a reasonable range. A comprehensive comparison would necessitate access to databases of similar contracts and market surveys specific to the U.S. Coast Guard's fleet and operational needs.

What are the potential risks associated with the short 59-day duration of this contract?

The short 59-day duration presents several potential risks. Firstly, it may lead to a compressed timeline for the contractor, potentially increasing the risk of errors or compromising the quality of the repair work if not managed effectively. Secondly, it limits the time available for thorough inspection and quality assurance by the government. Thirdly, if unforeseen issues arise during the repair process that extend beyond the initial scope or timeline, the government may face challenges in addressing them within the existing contract framework, potentially requiring a new, expedited procurement process which could be more costly and time-consuming.

What is Lyceum Dynamics LLC's track record with federal contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

Information regarding Lyceum Dynamics LLC's specific track record with federal contracts, especially with the Department of Homeland Security (DHS) or the U.S. Coast Guard (USCG), is not provided in the summary data. A thorough assessment would require reviewing contract databases (like SAM.gov or FPDS) to identify past performance, contract values, types of services rendered, and any past performance ratings or disputes. Understanding their history is crucial for evaluating the reliability and capability of the contractor for this specific ship repair award.

What historical spending patterns exist for ship repair and maintenance by the U.S. Coast Guard in California?

Analyzing historical spending patterns for ship repair and maintenance by the U.S. Coast Guard in California would involve examining past contract awards for similar services in that region. This would help establish a baseline for typical costs, contract durations, and the frequency of such procurements. It would also reveal which contractors have historically been awarded these types of contracts and the general competitive landscape. Without access to this historical data, it is difficult to contextualize the current $11.3 million award and assess whether it aligns with previous spending trends or represents an anomaly.

How does the 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) classification impact the potential for cost savings compared to full and open competition?

Competing under Simplified Acquisition Procedures (SAP) typically involves procurements valued between $10,000 and $250,000 (though thresholds can be higher for certain categories). While SAP aims to streamline the acquisition process and can lead to faster awards, it may not always achieve the same level of price competition as full and open competition for larger dollar values. The fact that 7 bidders participated suggests a reasonable level of competition within the SAP framework for this $11.3 million contract. However, for contracts of this magnitude, full and open competition might potentially yield even more aggressive pricing from a wider pool of contractors, though it would likely involve a longer procurement cycle.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1340 BISON AVE, NEWPORT BEACH, CA, 92660

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,300

Exercised Options: $11,300

Current Obligation: $11,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline