DHS Coast Guard awards $8.78M purchase order for ship repair to Advanced Diesel Solutions, a sole-source contract

Contract Overview

Contract Amount: $8,775 ($8.8K)

Contractor: Advanced Diesel Solutions L.L.C

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: MARINE CHEMIST

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $8,775 to ADVANCED DIESEL SOLUTIONS L.L.C for work described as: MARINE CHEMIST Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The fixed-price nature of the award provides some cost certainty, but the absence of competition limits benchmarking opportunities. 3. Ship building and repair is a critical sector for the Coast Guard's operational readiness. 4. The contract duration is short, suggesting it may be for a specific, immediate need. 5. The award to a single vendor without competition warrants scrutiny for value for money. 6. Performance context is limited due to the lack of competitive bidding and detailed performance metrics.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to assess if Advanced Diesel Solutions' pricing is fair and reasonable. The $8.78 million award for ship repair lacks external benchmarks. Comparing this to similar, competitively bid ship repair contracts would be necessary to determine if the government received good value. The sole-source nature inherently limits the ability to ensure optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED' and a 'PURCHASE ORDER' type award. This suggests that only one vendor, Advanced Diesel Solutions L.L.C., was considered for this requirement. The lack of competition means there were no other bidders to drive down prices or offer alternative solutions, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium for this service due to the absence of a competitive bidding process. Without multiple offers, the government had limited leverage to negotiate the best possible price.

Public Impact

The U.S. Coast Guard benefits from this contract through the maintenance and repair of its vessels, ensuring operational readiness. Services delivered include ship building and repairing, crucial for maintaining the fleet's seaworthiness. The geographic impact is primarily focused on Puerto Rico, where the services are likely to be performed or where the vessels are based. The contract supports the maritime industry workforce involved in ship repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for higher costs compared to a competed contract.
Limited data available to assess contractor's past performance on similar sole-source awards.

Positive Signals

Award is for a fixed price, providing some cost predictability.
Contract supports critical Coast Guard operational needs.
Award is to a specific company, potentially indicating specialized capabilities required.

Sector Analysis

The ship building and repairing sector is vital for national defense and maritime operations. This contract falls within the broader industrial base supporting naval and coast guard fleets. Spending in this sector can fluctuate based on fleet modernization, maintenance cycles, and geopolitical demands. Comparable spending benchmarks for ship repair vary widely based on vessel type, complexity of work, and location, but a $8.78 million award for a single purchase order suggests a significant repair or refit project.

Small Business Impact

The data indicates that this contract was not competed and there is no indication of small business set-asides (ss: false, sb: false). Therefore, this specific award does not appear to directly benefit small businesses through a set-aside. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is not directly discernible from this data alone. Future analysis would require details on subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement regulations and the U.S. Coast Guard's contracting command. As a sole-source award, it may receive heightened scrutiny from oversight bodies if concerns about justification or pricing arise. Transparency is limited due to the non-competitive nature, and specific accountability measures would depend on the contract's terms and conditions, which are not fully detailed here. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Ship Repair Contracts
Maritime Administration Vessel Maintenance
Naval Sea Systems Command Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8,775 to ADVANCED DIESEL SOLUTIONS L.L.C. MARINE CHEMIST

Who is the contractor on this award?

The obligated recipient is ADVANCED DIESEL SOLUTIONS L.L.C.

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 $8,775.

What is the period of performance?

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

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

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'PURCHASE ORDER' to ADVANCED DIESEL SOLUTIONS L.L.C. The specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need with no time for competition, or a follow-on to a previously competed contract where only the original contractor can perform. Further investigation into the contract file or agency justifications would be required to understand the precise reasons for bypassing the competitive bidding process in this instance.

How does the $8.78 million award compare to typical ship repair costs for the U.S. Coast Guard?

Directly comparing the $8.78 million award to typical ship repair costs is challenging without more specific details about the scope of work, vessel type, and the nature of the repairs. Ship repair costs can vary dramatically based on the size and class of the vessel, the complexity of the required maintenance or upgrades, and the location of the repair facility. A $8.78 million figure for a single purchase order suggests a substantial project, potentially a major overhaul, refit, or significant component replacement, rather than routine maintenance. To establish a benchmark, one would need to analyze historical data for similar repair projects on comparable Coast Guard vessels, ideally those awarded through a competitive process to gauge market rates.

What are the potential risks associated with a sole-source award for ship repair?

The primary risk associated with a sole-source award for ship repair is the potential for inflated costs due to the lack of price competition. Without multiple bids, the contractor may not feel pressured to offer the most competitive pricing. Other risks include a reduced incentive for the contractor to innovate or provide exceptional service, as there is no immediate threat of losing future business to competitors. Furthermore, a sole-source award can limit the government's options if the chosen contractor fails to perform adequately, potentially leading to delays and increased costs to find an alternative solution. The absence of a competitive process also reduces transparency and makes it harder to verify the fairness of the price.

What is the track record of Advanced Diesel Solutions L.L.C. with federal contracts?

The provided data identifies ADVANCED DIESEL SOLUTIONS L.L.C. as the contractor for this $8.78 million purchase order. However, the data does not include information about the company's broader track record with federal contracts, such as past performance ratings, previous contract values, or the types of services they have provided to other government agencies. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG, which may contain historical contract awards, performance evaluations, and other relevant details about the company's history as a government contractor.

What is the significance of the contract being a 'PURCHASE ORDER' versus a 'CONTRACT'?

A purchase order (PO) is generally a simpler document used for acquiring goods or services, often for smaller dollar amounts or when the terms are straightforward and pre-established. It typically represents an offer to buy. A contract, on the other hand, is a more formal, legally binding agreement that outlines detailed terms, conditions, rights, and responsibilities for both parties, often involving more complex procurements. While this PO is for a significant amount ($8.78 million), its classification as a PO might indicate a streamlined procurement process or that it falls under specific agency guidelines for certain types of acquisitions. The 'FIRM FIXED PRICE' designation suggests cost certainty, regardless of whether it's termed a PO or a contract.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

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

Address: PARKVILLE SUR F1, GUAYNABO, PR, 00969

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,775

Exercised Options: $8,775

Current Obligation: $8,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline