DHS Coast Guard Awards $855K for Insulation, Completing Delivery Order by April 2026

Contract Overview

Contract Amount: $85,540 ($85.5K)

Contractor: G I Industrial-Marine, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-06

End Date: 2026-04-20

Contract Duration: 14 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CGC SPENCER FY26 INSULATION

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $85,540.21 to G I INDUSTRIAL-MARINE, LLC for work described as: CGC SPENCER FY26 INSULATION Key points: 1. Spending focuses on ship insulation, a critical component for vessel integrity and operational efficiency. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. Risk appears moderate, given the fixed-price contract and short duration, but material availability could be a factor. 4. The sector is Ship Building and Repairing, with a PSC code of 6110.

Value Assessment

Rating: good

The contract value of $855,402.10 for 14 days of work appears reasonable for specialized insulation services. Benchmarking against similar contracts for ship repair and maintenance would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific sources were initially excluded. This method aims to balance broad competition with targeted expertise, potentially impacting price discovery by narrowing the initial bidder pool.

Taxpayer Impact: The competitive nature of the award, even with source exclusion, suggests efforts to secure fair pricing, ultimately benefiting taxpayers by avoiding sole-source markups.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels through essential insulation. Supports the maritime industry by contracting for specialized ship repair services. Contributes to the safety and efficiency of Coast Guard operations in potentially harsh marine environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting material delivery.
Limited duration may not capture long-term insulation performance issues.

Positive Signals

Firm Fixed Price contract limits cost overrun risk.
Clear delivery timeline for critical vessel component.
Competition, even with exclusions, can drive value.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, specifically for insulation. Spending in this area is crucial for maintaining the structural integrity and operational efficiency of maritime assets. Benchmarks for similar contracts would typically consider vessel size, type, and complexity of insulation required.

Small Business Impact

The data indicates the awardee is G I INDUSTRIAL-MARINE, LLC. Further analysis is needed to determine if this is a small business and if subcontracting opportunities were prioritized or made available to small businesses.

Oversight & Accountability

The U.S. Coast Guard, under the Department of Homeland Security, is responsible for this procurement. Oversight would involve ensuring contract compliance, quality of work, and timely delivery according to the specified terms and conditions.

Related Government Programs

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

Risk Flags

Potential supply chain delays for specialized insulation materials.
Limited contract duration may not fully capture long-term performance.
Lack of detail on specific insulation technical requirements.
Unclear rationale for source exclusion in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $85,540.21 to G I INDUSTRIAL-MARINE, LLC. CGC SPENCER FY26 INSULATION

Who is the contractor on this award?

The obligated recipient is G I INDUSTRIAL-MARINE, 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 $85,540.21.

What is the period of performance?

Start: 2026-04-06. End: 2026-04-20.

What is the specific type and R-value of insulation required, and how does it compare to industry standards for Coast Guard vessels?

The provided data does not specify the exact type or R-value of insulation. This information is crucial for assessing the technical adequacy and long-term effectiveness of the procured material. Comparing it to industry standards for similar maritime applications would reveal if the chosen insulation meets or exceeds requirements for thermal performance, fire resistance, and durability in a marine environment.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process?

The rationale behind excluding specific sources is not detailed in the provided data. Typically, exclusions are based on factors like lack of specialized capabilities, past performance issues, or specific security requirements. Understanding these reasons is vital for evaluating the fairness and effectiveness of the competition method and ensuring it did not unduly limit potential cost savings.

How will the performance and durability of the insulation be evaluated post-installation to ensure long-term value and effectiveness?

The data does not outline a post-installation evaluation plan for the insulation's performance and durability. Effective oversight should include mechanisms for inspection and testing after installation to confirm adherence to specifications and assess long-term effectiveness against environmental factors and operational wear. This ensures the investment provides lasting value and maintains vessel integrity.

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: 2100 COLUMBIA ST, PORTSMOUTH, VA, 23704

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $85,540

Exercised Options: $85,540

Current Obligation: $85,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08024DMECP0006

IDV Type: IDC

Timeline