Coast Guard awards $1.07M contract for ship repair, highlighting a competitive bidding process

Contract Overview

Contract Amount: $1,065,566 ($1.1M)

Contractor: ST. Johns Boat Company

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-15

End Date: 2026-06-17

Contract Duration: 63 days

Daily Burn Rate: $16.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CGC SEAHORSE POP: 4/15/2026 - 6/17/2026

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.1 million to ST. JOHNS BOAT COMPANY for work described as: CGC SEAHORSE POP: 4/15/2026 - 6/17/2026 Key points: 1. The contract value appears reasonable given the scope of ship repair services. 2. A competitive bidding process was utilized, suggesting potential for good price discovery. 3. The short duration of the contract may indicate a focus on specific, immediate needs. 4. This award falls within the broader category of maritime support services for the Coast Guard. 5. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $1.07 million for a two-month period for ship repair is within a reasonable range for specialized maritime services. Benchmarking against similar, short-term repair contracts for vessels of comparable size and complexity would provide a more precise value assessment. However, without more detailed service specifications, it's difficult to definitively state if this represents excellent or fair value. The firm fixed-price structure suggests the contractor has assessed the risks and costs associated with the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for contracts below a certain threshold. Four bids were received, demonstrating a healthy level of interest and competition among potential suppliers. This competitive environment is generally favorable for achieving competitive pricing and ensuring that the government receives a fair market value for the services rendered.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars are being used efficiently, as multiple companies vied to offer their best pricing and terms.

Public Impact

The U.S. Coast Guard benefits from the timely repair and maintenance of its vessels, ensuring operational readiness. The contract delivers essential ship repair and maintenance services, crucial for the Coast Guard's maritime safety and security missions. The geographic impact is localized to Florida, where the St. Johns Boat Company is based and likely where the work will be performed. The contract supports skilled labor within the shipbuilding and repairing industry in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair needs are underestimated.
Dependence on contractor's ability to meet tight deadlines for a short-duration contract.

Positive Signals

Competitive award process indicates potential for cost savings.
Firm fixed-price contract shifts risk to the contractor.
Short contract duration may indicate efficient resource allocation for specific needs.

Sector Analysis

The shipbuilding and repairing sector is a critical component of the defense and maritime industrial base. This contract falls within the broader category of specialized industrial services supporting government fleets. Spending in this sector can fluctuate based on fleet modernization, maintenance cycles, and operational demands. Comparable spending benchmarks would typically involve analyzing historical repair contracts for similar Coast Guard cutters or other government vessels.

Small Business Impact

While this contract was competed, there is no explicit indication of a small business set-aside. The presence of four bidders suggests that both large and small businesses may have participated. Further analysis would be needed to determine if any subcontracting opportunities for small businesses are anticipated or required under this award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a definitive contract awarded under SAP, it likely falls under the purview of the Department of Homeland Security's Inspector General for audits and investigations. Transparency is generally maintained through contract award databases, though specific performance monitoring details are typically internal.

Related Government Programs

U.S. Coast Guard Vessel Maintenance Contracts
Maritime Industrial Services
Shipbuilding and Repair Contracts

Risk Flags

Short contract duration may pose execution risks.
Potential for cost overruns if scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.1 million to ST. JOHNS BOAT COMPANY. CGC SEAHORSE POP: 4/15/2026 - 6/17/2026

Who is the contractor on this award?

The obligated recipient is ST. JOHNS BOAT COMPANY.

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 $1.1 million.

What is the period of performance?

Start: 2026-04-15. End: 2026-06-17.

What is the track record of St. Johns Boat Company with federal contracts, particularly with the U.S. Coast Guard?

A review of federal procurement data would be necessary to fully assess St. Johns Boat Company's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or contract terminations. Understanding their experience with similar vessel types and repair scopes, as well as their past performance ratings with the Coast Guard or other federal agencies, would provide crucial context for evaluating their reliability and capability on this current award. Without specific historical data, it is difficult to provide a detailed assessment of their track record.

How does the $1.07 million cost compare to similar ship repair contracts for vessels of this size and type?

Benchmarking this $1.07 million contract against similar ship repair contracts requires access to a database of historical awards for comparable vessels and repair scopes. Factors such as the specific type of vessel (e.g., cutter, patrol boat), the complexity of the required repairs (e.g., hull work, engine overhaul, system upgrades), and the duration of the repair period are critical for a meaningful comparison. Given the short, two-month duration, this value suggests a focus on specific, potentially urgent, repair needs rather than a comprehensive overhaul. A preliminary assessment indicates the cost is within a plausible range for specialized, short-term maritime repair services, but a definitive value-for-money judgment necessitates detailed comparative data.

What are the primary risks associated with this firm fixed-price contract for the U.S. Coast Guard?

The primary risk for the U.S. Coast Guard with this firm fixed-price contract is the potential for the contractor, St. Johns Boat Company, to incur cost overruns that could lead to pressure for change orders or a reduction in the quality of work to maintain profitability. While the fixed price shifts performance risk to the contractor, the government must ensure the contract's scope is clearly defined to prevent disputes. Another risk is the contractor's ability to complete the work within the short, two-month timeframe, which could lead to delays impacting Coast Guard operations if not managed effectively. The government's oversight will be crucial in monitoring progress and ensuring adherence to specifications.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for contracts of this size?

The Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for contracts below certain thresholds (currently $250,000, though this can be higher for specific categories like construction). For contracts around $1 million, while SAP might still be used, it often involves more formal competitive processes than those strictly under the lowest SAP thresholds. The fact that four bids were received suggests that the method used under SAP for this award was effective in attracting competition. Generally, SAP aims to reduce administrative burden while still encouraging competition, which can lead to fair pricing. However, the effectiveness can vary depending on how well the solicitation is structured and how widely it is publicized within the relevant industry.

What is the historical spending pattern for ship repair and maintenance by the U.S. Coast Guard in Florida?

Analyzing historical spending patterns for U.S. Coast Guard ship repair and maintenance in Florida would require accessing and aggregating data from federal procurement databases over several fiscal years. This would involve identifying contracts awarded to various entities within Florida for similar services, noting the agencies involved (primarily the Coast Guard), the types of vessels serviced, and the contract values. Such an analysis could reveal trends in spending, identify key contractors, and provide context for the current $1.07 million award. It could also highlight whether this award represents a typical expenditure or an outlier based on past activity.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08026QPBPL0008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9852 HECKSCHER DR, JACKSONVILLE, FL, 32226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,065,566

Exercised Options: $1,065,566

Current Obligation: $1,065,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline