Coast Guard awards $35.5M IDIQ for insulation services, with a 25-day performance period

Contract Overview

Contract Amount: $35,460 ($35.5K)

Contractor: Mills Marine & Ship Repair LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-02

End Date: 2026-03-27

Contract Duration: 25 days

Daily Burn Rate: $1.4K/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 SENECA FY26 INSULATION IDIQ POP: 02MAR26 - 27MAR26

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35,460.11 to MILLS MARINE & SHIP REPAIR LLC for work described as: CGC SENECA FY26 INSULATION IDIQ POP: 02MAR26 - 27MAR26 Key points: 1. The contract's short duration suggests a focus on immediate needs rather than long-term strategic requirements. 2. Limited competition data makes it difficult to assess the overall market dynamics for these services. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. The award to a single entity indicates potential consolidation or specialized capabilities within the market. 5. The contract's value is modest, suggesting it may be a component of a larger program or for a specific facility.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the limited information available on the specific services and the short performance period. The total award amount of $35.5 million for a 25-day period is substantial on a daily basis, but without details on the scope of work, it's difficult to compare to similar contracts. The firm-fixed-price type suggests the government has a clear understanding of the requirements and associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the initial intent was full and open competition, certain sources were excluded, leading to a limited competition scenario. The specific reasons for exclusion are not detailed, making it hard to ascertain the breadth of the competitive landscape. This type of award can sometimes indicate a need for specialized capabilities or a desire to work with pre-qualified vendors.

Taxpayer Impact: The limited competition may result in less aggressive pricing than a truly full and open competition, potentially leading to higher costs for taxpayers.

Public Impact

The U.S. Coast Guard will benefit from the provision of insulation services, likely for its facilities or vessels. This contract supports the operational readiness and maintenance of Coast Guard assets. The primary geographic impact is expected to be in Virginia, where the contractor is located. The contract may indirectly support a specialized workforce in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to assess if the price is competitive.
The 'exclusion of sources' clause warrants further investigation into the reasons for limiting competition.
Short performance period could indicate a reactive need rather than planned procurement, potentially leading to rushed execution.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award to a single entity suggests a potentially streamlined process for this specific need.
The contract is awarded to a company with experience in marine repair, indicating relevant capabilities.

Sector Analysis

The shipbuilding and repairing industry (NAICS 336611) is a critical sector supporting national defense and maritime infrastructure. This contract for insulation services fits within the broader maintenance and repair segment of this industry. While the specific value of the insulation sub-market is not readily available, the overall shipbuilding and repairing sector is substantial, with significant government spending. This contract represents a small portion of the overall federal spending in this sector.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary contractor, MILLS MARINE & SHIP REPAIR LLC, will likely perform the work directly or through its own resources, with limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. As a delivery order under an IDIQ, the oversight will focus on the performance and delivery of services within the specified period. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security - Facilities Maintenance
U.S. Coast Guard - Vessel Maintenance
Shipbuilding and Repair Contracts
Industrial Services Contracts

Risk Flags

Limited competition raises concerns about potential price inflation.
Short performance period could indicate rushed execution or unforeseen issues.
Lack of detailed scope of work hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35,460.11 to MILLS MARINE & SHIP REPAIR LLC. CGC SENECA FY26 INSULATION IDIQ POP: 02MAR26 - 27MAR26

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 $35,460.11.

What is the period of performance?

Start: 2026-03-02. End: 2026-03-27.

What specific types of insulation services are being procured under this IDIQ?

The provided data does not specify the exact types of insulation services. However, given the contractor's specialization in marine repair and the awarding agency (U.S. Coast Guard), it is likely related to thermal, acoustic, or fireproofing insulation for vessels, shore facilities, or related infrastructure. These services could include installation, repair, or maintenance of insulation materials critical for operational efficiency, safety, and crew comfort aboard ships or within maritime facilities.

How does the $35.5 million award compare to historical spending on similar insulation services by the U.S. Coast Guard?

Without specific historical data on insulation services procurement by the U.S. Coast Guard, a direct comparison is not possible. The $35.5 million award for a 25-day period is significant on a per-day basis. However, the total value of the IDIQ contract itself is not specified, only the value of this particular delivery order. To assess historical spending, one would need to analyze past contracts for insulation services, considering factors like scope, duration, and inflation, which are not available in the provided data.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type suggests that while the contract was intended to be competed broadly, certain potential bidders were excluded. The risks include potentially higher prices due to reduced competition, a narrower pool of innovative solutions, and the possibility that the exclusion criteria may not have been fully justified or transparent. This could lead to missed opportunities for cost savings or access to superior technical capabilities that might have been offered by excluded vendors.

What is the track record of MILLS MARINE & SHIP REPAIR LLC in performing government contracts, particularly for the U.S. Coast Guard?

The provided data indicates that MILLS MARINE & SHIP REPAIR LLC is the awardee for this contract. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) for past contract awards, performance reviews (e.g., CPARS), and any history of disputes or terminations. Without this external data, it's impossible to comment on their specific performance history, reliability, or experience with the U.S. Coast Guard or similar government entities.

Given the short 25-day performance period, what is the likely urgency or nature of the insulation requirement?

A 25-day performance period for a $35.5 million delivery order suggests a highly urgent or time-sensitive requirement. This could be related to an unexpected operational need, a critical repair that must be completed before a specific deadline (e.g., before a vessel deploys or a facility's operational season begins), or a component of a larger, rapidly executed project. The short timeframe may also indicate that the scope of work, while high in value, is concentrated and requires rapid deployment of resources.

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: $35,460

Exercised Options: $35,460

Current Obligation: $35,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08024DMECP0003

IDV Type: IDC

Timeline