DHS Coast Guard awards $10.7M for ship repair, highlighting specialized needs in shipbuilding and repair sector

Contract Overview

Contract Amount: $10,678 ($10.7K)

Contractor: Mills Marine & Ship Repair LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-05-04

End Date: 2026-05-15

Contract Duration: 11 days

Daily Burn Rate: $971/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 SPENCER FY26 INSULATION POP: 04 MAY 2026-15 MAY 2026

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10,678.23 to MILLS MARINE & SHIP REPAIR LLC for work described as: CGC SPENCER FY26 INSULATION POP: 04 MAY 2026-15 MAY 2026 Key points: 1. Contract value of $10.7M for a short duration suggests a focused scope of work. 2. The award to MILLS MARINE & SHIP REPAIR LLC indicates a reliance on specialized marine repair capabilities. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process but with specific pre-qualification. 4. The short performance period (11 days) points to a critical or time-sensitive repair need. 5. The contract falls under the 'Ship Building and Repairing' NAICS code, a niche but vital industrial sector. 6. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $10.7 million for an 11-day period appears reasonable given the specialized nature of ship repair. Benchmarking against similar, short-duration, high-value repair contracts for naval or coast guard vessels would provide further context. The fixed-price nature of the contract suggests that the government has a clear understanding of the scope and aims to mitigate cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while the competition was open, there were specific criteria or prior exclusions that narrowed the field of potential bidders. The exact number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was intended, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: This competitive approach, even with exclusions, aims to ensure that taxpayer funds are used efficiently by soliciting bids from qualified entities, driving down costs through market forces.

Public Impact

The U.S. Coast Guard benefits from the maintenance and repair of its vital assets, ensuring operational readiness. The contract supports the critical infrastructure of the maritime domain, essential for national security and economic activity. The services delivered are specialized ship repair, crucial for maintaining the seaworthiness and functionality of Coast Guard vessels. The geographic impact is likely concentrated around the location of the vessel requiring repair, potentially in Virginia where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of competition details may obscure potential for better pricing.
Reliance on a single awardee for specialized repair could create future dependency.
Lack of detailed performance metrics makes assessing long-term value challenging.

Positive Signals

Fixed-price contract type helps control costs.
Full and open competition, even with exclusions, suggests a structured procurement process.
Award to a specific company indicates capability within the marine repair sector.

Sector Analysis

The Ship Building and Repairing sector (NAICS 336611) is a critical component of the industrial base, supporting both commercial and governmental maritime operations. This contract represents a small but significant expenditure within this specialized field. The market is characterized by high barriers to entry due to specialized equipment, skilled labor, and regulatory compliance. Comparable spending benchmarks would typically involve analyzing other repair and maintenance contracts for similar government vessels.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee's size is not specified, the nature of specialized ship repair often involves larger, established firms. There is no explicit information on subcontracting plans, but opportunities for small businesses might exist in supplying materials or specialized components if the prime contractor utilizes them.

Oversight & Accountability

Oversight for this contract would fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability is managed through contract terms, performance monitoring, and payment processes. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USCG Vessel Maintenance and Repair
Department of Defense Shipbuilding and Repair
Maritime Administration Shipyard Services
Naval Sea Systems Command Contracts

Risk Flags

Short performance period may limit thoroughness.
Potential for limited competition despite 'full and open' designation.
Lack of detailed scope of work makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10,678.23 to MILLS MARINE & SHIP REPAIR LLC. CGC SPENCER FY26 INSULATION POP: 04 MAY 2026-15 MAY 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 $10,678.23.

What is the period of performance?

Start: 2026-05-04. End: 2026-05-15.

What is the typical track record of MILLS MARINE & SHIP REPAIR LLC with federal contracts, particularly with the U.S. Coast Guard?

Information regarding MILLS MARINE & SHIP REPAIR LLC's specific track record with federal contracts, especially with the U.S. Coast Guard, is not detailed in the provided data. A comprehensive analysis would require examining historical contract awards, performance reviews, and any past issues or successes associated with this contractor. Federal procurement databases like FPDS or SAM.gov would be the primary sources for such an investigation. Understanding their past performance is crucial for assessing the reliability and value proposition of this current award. Without this historical context, it's difficult to definitively gauge their expertise and dependability in fulfilling the contract's requirements.

How does the $10.7 million award compare to other recent ship repair contracts awarded by the U.S. Coast Guard or similar agencies?

The $10.7 million award for an 11-day period is substantial on a per-day basis, suggesting a high level of specialization or urgency. To benchmark this value, one would need to compare it against similar contracts for vessel repair and maintenance within the U.S. Coast Guard, Navy, or other maritime agencies. Factors such as vessel type, size, complexity of repairs, and contract duration are critical for a fair comparison. If similar, shorter-duration, high-value repair tasks for comparable vessels typically fall within this price range, then the award appears reasonable. Conversely, if comparable services are significantly cheaper or if this contract covers a more extensive scope than typical short-term repairs, it might warrant further scrutiny regarding value for money.

What are the specific risks associated with a short-duration, high-value contract like this one?

Short-duration, high-value contracts present unique risks. One primary risk is the potential for unforeseen complications arising during the limited performance window, which could lead to cost overruns if not managed effectively, despite the fixed-price nature. There's also a risk of inadequate competition if the short timeframe restricts the number of capable bidders, potentially leading to less favorable pricing. Furthermore, the intense focus on rapid completion might compromise the thoroughness of inspections or quality of work if not rigorously overseen. For the government, the risk of not achieving the full intended value or encountering delays that impact operational readiness is heightened due to the compressed timeline.

What is the historical spending pattern for ship repair and maintenance by the U.S. Coast Guard, and how does this award fit within that trend?

Analyzing the historical spending patterns of the U.S. Coast Guard for ship repair and maintenance is essential to contextualize this $10.7 million award. This would involve examining annual expenditures on similar services over the past several fiscal years. Key questions include whether spending has been increasing, decreasing, or remaining stable, and what proportion of the overall maintenance budget is allocated to ship repair. Understanding these trends helps determine if this award represents a typical expenditure, an anomaly, or a strategic shift in investment. If historical data shows a consistent need for significant, short-term repair contracts, this award aligns with established patterns. Conversely, a sudden spike or deviation might indicate new challenges or program changes.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause for cost efficiency and contractor performance?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a deliberate procurement strategy. While aiming for broad competition, it indicates that certain entities were pre-qualified or that specific sources were initially excluded for reasons not detailed here. This can lead to cost efficiencies if the pre-qualification process ensures only highly capable and competitive firms participate, thereby reducing the risk of non-performance and associated costs. However, if the exclusions were too restrictive, it could limit the competitive pool, potentially leading to higher prices than a truly unrestricted full and open competition. The impact on contractor performance depends on how well the selected bidders understand and meet the contract's stringent requirements within the defined scope and timeframe.

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: $10,678

Exercised Options: $10,678

Current Obligation: $10,678

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08024DMECP0003

IDV Type: IDC

Timeline