Coast Guard Awards $50.5K Insulation Contract to Mills Marine for CGC Escanaba

Contract Overview

Contract Amount: $50,463 ($50.5K)

Contractor: Mills Marine & Ship Repair LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-05-18

End Date: 2026-06-05

Contract Duration: 18 days

Daily Burn Rate: $2.8K/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 ESCANABA FY26 INSULATION IDIQ. POP: 18 MAY 2026 - 05 JUN 2026

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23704

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $50,462.88 to MILLS MARINE & SHIP REPAIR LLC for work described as: CGC ESCANABA FY26 INSULATION IDIQ. POP: 18 MAY 2026 - 05 JUN 2026 Key points: 1. Contract value is modest at $50.5K, suggesting a specialized or limited scope. 2. Mills Marine & Ship Repair LLC is the sole awardee, indicating potential concentration. 3. The contract is for insulation services, a critical but often overlooked component in vessel maintenance. 4. The award falls under the Ship Building and Repairing NAICS code.

Value Assessment

Rating: fair

The contract value of $50,462.88 is relatively small. Benchmarking against similar insulation contracts for vessels of this size would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs than a fully open process.

Taxpayer Impact: Given the small contract value, the direct taxpayer impact is minimal, but ensuring fair pricing is still important for responsible stewardship of funds.

Public Impact

Ensures operational readiness of the CGC Escanaba by maintaining critical insulation. Supports specialized maritime repair services within the shipbuilding and repairing sector. The limited competition raises questions about maximizing value for taxpayer dollars. Potential for future, larger contracts if performance is satisfactory.

Waste & Efficiency Indicators

Waste Risk Score: 20 / 10

Warning Flags

Limited competition method
Sole awardee for this specific task

Positive Signals

Clear contract duration and scope
Firm Fixed Price contract type

Sector Analysis

The shipbuilding and repairing sector is vital for national security and economic activity. This contract, while small, contributes to the maintenance of critical maritime assets. Benchmarks for similar repair services vary widely based on vessel type and complexity.

Small Business Impact

The data does not indicate if Mills Marine & Ship Repair LLC is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The award method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies some level of justification for limiting the pool of bidders. Oversight should ensure this exclusion was appropriate and that the selected contractor offers fair value.

Related Government Programs

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

Risk Flags

Limited competition raises concerns about price reasonableness.
Potential lack of competitive pressure on pricing.
Need for clear justification for excluding other sources.
Unknown small business status of the awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $50,462.88 to MILLS MARINE & SHIP REPAIR LLC. CGC ESCANABA FY26 INSULATION IDIQ. POP: 18 MAY 2026 - 05 JUN 2026

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 $50,462.88.

What is the period of performance?

Start: 2026-05-18. End: 2026-06-05.

What is the justification for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding other sources under this procurement method typically involves specific technical requirements, existing relationships with a particular vessel or class, or a determination that only a limited number of contractors possess the necessary specialized skills or certifications. Without further details, it's difficult to ascertain the precise reason, but it implies a need for specialized expertise or a unique situation that narrowed the field of potential bidders.

How does the limited competition impact the overall value and risk for this contract?

Limited competition inherently increases the risk of suboptimal pricing and reduced innovation compared to full and open competition. While the contract value is small ($50.5K), the exclusion of potential bidders means the government may not have secured the absolute best price or the most innovative solution available. This could set a precedent for future, potentially larger, contracts with the same vendor or under similar limited competition scenarios.

What is the long-term effectiveness of awarding insulation contracts under this limited competition method for vessel maintenance?

The long-term effectiveness depends heavily on the specific justification for the limited competition. If the chosen contractor, Mills Marine & Ship Repair LLC, consistently delivers high-quality work at a reasonable price, the effectiveness could be positive for this specific task. However, relying on limited competition repeatedly without strong justification could lead to complacency, higher costs, and missed opportunities for technological advancements or cost savings from broader market engagement.

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: $50,463

Exercised Options: $50,463

Current Obligation: $50,463

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08024DMECP0003

IDV Type: IDC

Timeline