Coast Guard awards $2.9M for cutter maintenance, highlighting need for specialized engineering services

Contract Overview

Contract Amount: $2,912,875 ($2.9M)

Contractor: SEA Technology Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-31

End Date: 2027-02-28

Contract Duration: 546 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALARM AND ANNOUNCING SYSTEM MAINTENANCE (ASM) (SCHEDULED) AND QUICK RESPONSE SUPPORT (QRS) (UNSCHEDULED CASUALTY) PROGRAMS ON USCG CUTTERS

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.9 million to SEA TECHNOLOGY SYSTEMS, LLC for work described as: ALARM AND ANNOUNCING SYSTEM MAINTENANCE (ASM) (SCHEDULED) AND QUICK RESPONSE SUPPORT (QRS) (UNSCHEDULED CASUALTY) PROGRAMS ON USCG CUTTERS Key points: 1. Contract addresses critical maintenance for alarm and announcing systems on USCG cutters. 2. Focus on scheduled maintenance and unscheduled casualty response ensures operational readiness. 3. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Competition was conducted after exclusion of sources, suggesting specific technical requirements. 5. The contract duration of 546 days indicates a need for ongoing, specialized support. 6. Firm-fixed-price structure aims to control costs for essential maritime services.

Value Assessment

Rating: good

The contract value of approximately $2.9 million for 546 days of service appears reasonable for specialized engineering support. Benchmarking against similar contracts for maritime alarm and announcing system maintenance is challenging due to the specific nature of the services and the limited competition. However, the firm-fixed-price structure suggests an effort to ensure cost predictability for the U.S. Coast Guard.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have been broad, specific requirements or prior performance likely led to a limited pool of eligible bidders. The exclusion of sources suggests that only a few companies possessed the necessary technical expertise or certifications to perform this specialized maintenance.

Taxpayer Impact: The limited competition may result in higher prices than if a broader range of vendors were able to bid. However, it also ensures that the critical systems are maintained by highly qualified providers, reducing the risk of costly failures.

Public Impact

Ensures the operational readiness and safety of U.S. Coast Guard cutters through reliable alarm and announcing systems. Supports the Coast Guard's mission of maritime security, search and rescue, and law enforcement. Provides specialized technical services to maintain critical onboard communication and safety equipment. Maintains the integrity of safety alert systems, crucial for crew response during emergencies. The contract supports a specific segment of the maritime engineering services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to higher costs for taxpayers.
Reliance on a limited number of sources may pose a risk if the contractor's performance declines or capacity is strained.
The specific nature of the exclusion of sources warrants further investigation into the technical barriers to entry.

Positive Signals

The firm-fixed-price contract provides cost certainty for the U.S. Coast Guard.
The contract addresses essential maintenance for critical safety and operational systems on cutters.
The award ensures continued support for the U.S. Coast Guard's vital maritime missions.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on specialized maritime systems. The market for maintaining alarm and announcing systems on naval vessels is niche, requiring contractors with deep technical knowledge of marine electronics and safety protocols. Spending in this area is driven by the operational tempo and aging fleet of the U.S. Coast Guard, necessitating regular maintenance and repair to ensure system reliability and compliance with safety regulations.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The specialized nature of the work likely favors larger, established firms with specific certifications and experience in maritime defense contracting, potentially limiting opportunities for smaller, less specialized companies in this particular award.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability is ensured through the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated by the contract award notice, which details the contractor, value, and period of performance. Further oversight may be provided by the DHS Office of Inspector General for significant issues.

Related Government Programs

USCG Cutter Maintenance Contracts
Maritime Alarm and Announcing Systems
Engineering Services for Naval Vessels
Department of Homeland Security Procurement
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Risk Flags

Limited Competition
Specialized Technical Requirements
Potential for Higher Costs due to Limited Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.9 million to SEA TECHNOLOGY SYSTEMS, LLC. ALARM AND ANNOUNCING SYSTEM MAINTENANCE (ASM) (SCHEDULED) AND QUICK RESPONSE SUPPORT (QRS) (UNSCHEDULED CASUALTY) PROGRAMS ON USCG CUTTERS

Who is the contractor on this award?

The obligated recipient is SEA TECHNOLOGY SYSTEMS, 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 $2.9 million.

What is the period of performance?

Start: 2025-08-31. End: 2027-02-28.

What is the track record of SEA TECHNOLOGY SYSTEMS, LLC in performing similar alarm and announcing system maintenance for the U.S. Coast Guard or other federal agencies?

SEA TECHNOLOGY SYSTEMS, LLC has a history of performing various technical services for the U.S. Coast Guard and other federal entities. While specific details on their performance for alarm and announcing system maintenance on cutters are not fully detailed in this award notice, their prior contracts likely demonstrate capabilities in related areas such as electronic systems installation, maintenance, and repair. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and expertise in this specific domain. The fact that they were selected under a 'Full and Open Competition After Exclusion of Sources' suggests they meet stringent pre-qualification criteria.

How does the awarded amount of $2.9 million compare to historical spending on similar maintenance services for USCG cutters?

Direct comparison of the $2.9 million award to historical spending on similar services is challenging without access to detailed historical contract data for alarm and announcing system maintenance specifically. This contract is a delivery order under an IDIQ, meaning it represents a portion of a larger potential contract value. The duration of 546 days (approximately 18 months) suggests a significant scope of work. To benchmark effectively, one would need to analyze the average cost per cutter, per year, for similar maintenance across the USCG fleet over several fiscal years, considering factors like cutter class, system complexity, and the specific services provided (scheduled vs. unscheduled).

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 cost overruns if the firm-fixed-price structure is not adequately managed, contractor underperformance leading to system failures or delays, and the risk associated with limited competition potentially driving up prices or limiting future options. Mitigation strategies likely include robust contract oversight by the U.S. Coast Guard, clear performance metrics and deliverables, and potentially contingency planning for alternative support if the primary contractor fails. The firm-fixed-price nature itself acts as a cost mitigation tool by shifting some of the financial risk to the contractor. The 'exclusion of sources' competition method, while limiting, aims to mitigate performance risk by selecting highly qualified vendors.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for money for this specific type of specialized service?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance value for money with the necessity of specialized expertise. While it limits the number of bidders, it ensures that the competition occurs among entities demonstrably capable of meeting stringent technical requirements. This can lead to better-quality service and reduced risk of failure, which are crucial for critical systems like alarm and announcing equipment on cutters. However, the reduced competition pool might mean less aggressive pricing than a truly open competition. The value for money is realized if the higher quality and reduced risk outweigh the potentially higher price compared to a broader, less specialized competition.

What are the implications of this contract award on the broader market for maritime engineering services, particularly for small businesses?

This contract award highlights the demand for specialized maritime engineering services, particularly for critical systems maintenance. For small businesses, the implications are mixed. While this specific award may not directly benefit them due to the nature of the competition and required expertise, it underscores the importance of developing niche capabilities within the maritime defense sector. The success of contractors like SEA TECHNOLOGY SYSTEMS, LLC in securing such contracts can encourage other small businesses to invest in specialized training and certifications to compete for future, potentially more accessible, opportunities within the broader maritime support ecosystem.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 732B MAIN ST, GAITHERSBURG, MD, 20878

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,557,015

Exercised Options: $2,912,875

Current Obligation: $2,912,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04424DBOD60006

IDV Type: IDC

Timeline