Coast Guard Awards $13.67M for OWS Commissioning to GEA Mechanical Equipment

Contract Overview

Contract Amount: $13,670 ($13.7K)

Contractor: GEA Mechanical Equipment US, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-13

End Date: 2026-04-13

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OWS COMMISSIONING - CGC SENECA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13,670.01 to GEA MECHANICAL EQUIPMENT US, INC. for work described as: OWS COMMISSIONING - CGC SENECA Key points: 1. The contract is for commissioning services related to the CGC Seneca. 2. GEA MECHANICAL EQUIPMENT US, INC. is the sole awardee. 3. The award was made under a 'NOT COMPETED' strategy. 4. The sector is Ship Building and Repairing, with a PSC of 336611.

Value Assessment

Rating: questionable

The contract value is $13.67 million. Without a competitive bidding process, it is difficult to assess if this price represents fair market value compared to similar contracts for ship commissioning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded using a sole-source strategy ('NOT COMPETED'). This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a more competitive process could have yielded a lower price.

Public Impact

Taxpayers may be paying a premium due to the absence of a competitive bidding process. The Coast Guard's operational readiness could be impacted if commissioning is delayed or over budget. The specific nature of 'OWS COMMISSIONING' is not detailed, making it hard to gauge the broader public impact beyond the vessel's functionality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Contract duration is short (one day), which is unusual for commissioning.

Positive Signals

Clear awardee and contract purpose identified.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

The Ship Building and Repairing sector involves complex and often high-value contracts. Benchmarks for commissioning services can vary significantly based on vessel size, type, and scope of work.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. Further analysis would be needed to determine if subcontracting opportunities were explored.

Oversight & Accountability

The 'NOT COMPETED' award strategy warrants scrutiny. Oversight should focus on the justification for not pursuing a competitive process and ensuring the price is reasonable.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Unclear justification for sole-sourcing
Unusual contract duration for scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13,670.01 to GEA MECHANICAL EQUIPMENT US, INC.. OWS COMMISSIONING - CGC SENECA

Who is the contractor on this award?

The obligated recipient is GEA MECHANICAL EQUIPMENT US, INC..

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 $13,670.01.

What is the period of performance?

Start: 2026-04-13. End: 2026-04-13.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or situations where only one source can fulfill the requirement. Without further documentation, it's impossible to confirm the specific rationale for this contract. This lack of transparency is a concern for accountability.

How does the $13.67 million price compare to industry benchmarks for similar ship commissioning services?

Benchmarking this price is challenging without detailed specifications of the 'OWS COMMISSIONING' scope for the CGC Seneca. However, for a single-day contract, $13.67 million appears high. A competitive process would have provided a clearer market-based price assessment.

What are the potential risks associated with a one-day contract for ship commissioning?

A one-day duration for a complex task like ship commissioning is highly unusual and suggests either a very limited scope or potential for contract modifications and overruns. This short duration could indicate a rushed process or an incomplete initial requirement definition, posing risks to timely and effective completion.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: GEA Group Aktiengesellschaft

Address: 400 S WUTHERING HILLS DR, JANESVILLE, WI, 53546

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,670

Exercised Options: $13,670

Current Obligation: $13,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline