DHS Coast Guard Awards $73.2M IDIQ for Ship Insulation to Mills Marine & Ship Repair

Contract Overview

Contract Amount: $73,237 ($73.2K)

Contractor: Mills Marine & Ship Repair LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-08

End Date: 2026-05-07

Contract Duration: 29 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CGC FORWARD FY26 INSULATION IDIQ

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $73,237.4 to MILLS MARINE & SHIP REPAIR LLC for work described as: CGC FORWARD FY26 INSULATION IDIQ Key points: 1. The contract is for insulation services on vessels, a critical component for operational efficiency and crew comfort. 2. Mills Marine & Ship Repair LLC is the sole awardee, raising questions about the extent of competition. 3. The contract value of $73.2M over a short duration suggests a significant per-vessel cost. 4. The sector is Ship Building and Repair, a specialized industry with unique material and labor requirements.

Value Assessment

Rating: fair

The contract value of $73.2M for a 29-day delivery order period is substantial. Benchmarking against similar ship repair insulation contracts is difficult without more detailed scope information, but the per-unit cost appears high.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential insulation services.

Public Impact

Ensures operational readiness and crew well-being on Coast Guard vessels through essential insulation. Supports the maritime industry, specifically ship repair and maintenance services. Potential for increased costs due to limited competition could impact overall Coast Guard budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
High per-unit cost potential
Short performance period for a large value

Positive Signals

Awarded to a specific company for a critical service
Supports a specialized sector

Sector Analysis

The Ship Building and Repair sector (NAICS 336611) is capital-intensive and requires specialized labor and materials. Spending benchmarks for insulation services within this sector can vary widely based on vessel type and scope of work.

Small Business Impact

The awardee is Mills Marine & Ship Repair LLC. It is unclear from the data if this is a small business. The contract type (limited competition) suggests that small business set-asides were not utilized for this specific award.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method requires justification and documentation to ensure fair and reasonable pricing and to demonstrate that competition was maximized within the constraints. Oversight is needed to confirm the rationale for excluding other sources.

Related Government Programs

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

Risk Flags

Limited competition raises price concerns.
High value for a short performance period.
Lack of transparency on source exclusion justification.
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 $73,237.4 to MILLS MARINE & SHIP REPAIR LLC. CGC FORWARD FY26 INSULATION IDIQ

Who is the contractor on this award?

The obligated recipient is MILLS MARINE & SHIP REPAIR 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 $73,237.4.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-07.

What was the specific justification for excluding other sources in this full and open competition?

The justification for excluding other sources would typically involve demonstrating that only a limited number of contractors possess the necessary specialized skills, facilities, or security clearances required for the specific insulation work on Coast Guard vessels. This could be due to unique technical requirements, proprietary processes, or urgent needs that limit the pool of capable bidders.

How does the $73.2M value for a 29-day period compare to industry benchmarks for similar vessel insulation projects?

Without detailed specifications of the insulation scope (e.g., square footage, material type, complexity of installation), a direct per-unit cost comparison is challenging. However, $73.2 million for 29 days suggests a very high daily rate, potentially indicating complex or extensive work, or a premium for specialized services and rapid deployment.

What is the long-term impact of this limited competition approach on the Coast Guard's ability to secure competitive pricing for future vessel maintenance?

A pattern of limited competition can reduce market pressure on pricing over time. If this approach becomes standard, it may lead to higher costs for the Coast Guard in the long run as potential competitors are discouraged or unable to participate. It could also hinder the development of a broader base of qualified contractors.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 211 MARKET ST, SUFFOLK, VA, 23434

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $73,237

Exercised Options: $73,237

Current Obligation: $73,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08024DMECP0003

IDV Type: IDC

Timeline