Coast Guard awards $11.2M contract for oil spill response services to Redwood Shore Diving, Inc

Contract Overview

Contract Amount: $11,211 ($11.2K)

Contractor: Redwood Shore Diving, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-24

End Date: 2026-04-23

Contract Duration: 58 days

Daily Burn Rate: $193/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FPN UCGPA26014 PROVIDE LABOR, MATERIALS, AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Place of Performance

Location: BRISBANE, SAN MATEO County, CALIFORNIA, 94005

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11,211.4 to REDWOOD SHORE DIVING, INC. for work described as: FPN UCGPA26014 PROVIDE LABOR, MATERIALS, AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC. Key points: 1. Contract focuses on critical environmental protection services for oil and hazardous chemical incidents. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Short performance period suggests a need for rapid response capabilities. 4. Geographic focus on California indicates a specific regional environmental risk. 5. Contract type is Time and Materials, which can lead to cost overruns if not closely managed.

Value Assessment

Rating: questionable

The contract value of $11.2 million for a two-month period appears high, especially given the Time and Materials pricing structure. Without comparable sole-source contracts for similar rapid-response environmental remediation services, it is difficult to benchmark the value effectively. The lack of competition inherently limits the government's ability to ensure the most competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Redwood Shore Diving, Inc., was considered. This approach bypasses the standard competitive bidding process, which typically solicits offers from multiple qualified companies. The absence of competition means the government did not explore potential cost savings or service enhancements that might have been available from other providers.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and pricing.

Public Impact

The primary beneficiaries are the U.S. Coast Guard and the environment in California, which will receive rapid response services in the event of oil spills or hazardous chemical incidents. Services delivered include labor, materials, and equipment necessary for mitigating the harmful effects of such incidents. The geographic impact is concentrated in California, a region with significant coastal and environmental sensitivities. Workforce implications are likely to involve specialized personnel from Redwood Shore Diving, Inc., potentially requiring rapid mobilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Time and Materials contract type carries inherent risk of cost escalation without strict oversight.
Short duration may indicate a reactive, rather than proactive, approach to preparedness.
Lack of public information on contractor's past performance in similar large-scale incidents.

Positive Signals

Addresses critical environmental protection needs for oil spill and hazardous chemical incidents.
Focuses on a specific geographic area (California) with known environmental risks.
Contract is awarded to a single entity, potentially allowing for streamlined communication and rapid deployment.

Sector Analysis

The oil spill and hazardous chemical response sector is a specialized niche within environmental services. Companies in this field require specific equipment, trained personnel, and rapid deployment capabilities. The market size for such emergency response services is driven by regulatory requirements and the inherent risks associated with maritime transport and industrial activities. This contract fits within the broader environmental remediation and emergency response services category.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no indication of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific award, as it was a sole-source procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures would be tied to the delivery order's performance requirements and the terms of the Time and Materials contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Emergency Response Contracts
Oil Spill Prevention and Response
Hazardous Materials Management

Risk Flags

Sole-source award may limit cost-effectiveness.
Time and Materials pricing structure poses cost overrun risk.
Lack of competitive bidding reduces transparency.
Short performance period requires rapid and efficient execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11,211.4 to REDWOOD SHORE DIVING, INC.. FPN UCGPA26014 PROVIDE LABOR, MATERIALS, AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Who is the contractor on this award?

The obligated recipient is REDWOOD SHORE DIVING, 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 $11,211.4.

What is the period of performance?

Start: 2026-02-24. End: 2026-04-23.

What is the track record of Redwood Shore Diving, Inc. in handling large-scale oil spills or hazardous chemical incidents?

The provided data does not include specific details on Redwood Shore Diving, Inc.'s track record for large-scale incidents. As this was a sole-source award, the U.S. Coast Guard likely conducted some level of pre-award vetting. However, without public access to performance reports or a competitive bidding process that would typically involve past performance evaluations, it is difficult to independently assess their capabilities and historical success rates in managing complex environmental emergencies. Further investigation into contract performance databases or agency records would be necessary to fully understand their experience.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar environmental response services?

Time and Materials (T&M) contracts, like this one, offer flexibility by reimbursing the contractor for actual labor hours and material costs, plus a fixed fee or overhead. This can be advantageous for unpredictable scopes of work. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For well-defined services, fixed-price contracts generally provide better cost certainty and incentivize contractor efficiency. The suitability of T&M here depends on the inherent unpredictability of oil spill response, but it necessitates rigorous oversight to control costs.

What is the typical duration and value of similar oil spill response contracts awarded by the U.S. Coast Guard or other agencies?

The provided data indicates a short duration (approximately two months) and a value of $11.2 million for this specific delivery order. Without access to a broader database of comparable contracts, it's challenging to establish a precise benchmark. However, emergency response contracts, especially those involving specialized equipment and rapid mobilization for environmental incidents, can vary significantly in duration and cost. Short-term, high-value awards are common for immediate response needs, while longer-term contracts might cover preparedness, training, or ongoing monitoring. A more comprehensive analysis would require comparing this award against other recent, similar procurements.

What specific environmental risks in California necessitate this type of sole-source, rapid-response contract?

California's extensive coastline, significant maritime traffic (including oil tankers and cargo ships), and proximity to offshore oil platforms present inherent risks of oil spills and hazardous chemical incidents. The state also has sensitive marine ecosystems, such as kelp forests and diverse wildlife, that are particularly vulnerable to pollution. The need for a rapid-response capability, as indicated by the short contract duration and the nature of the services, suggests the U.S. Coast Guard has identified specific, potentially recurring, or high-consequence environmental threats in the region that require immediate mitigation services.

Are there any established performance metrics or service level agreements associated with this contract?

The provided data does not explicitly detail performance metrics or service level agreements (SLAs) for this contract. However, as a Time and Materials contract for environmental remediation, performance would likely be measured against the successful mitigation of the harmful effects of an oil spill or hazardous chemical incident, as directed by the Federal On-Scene Coordinator (FOSC). Key performance indicators might include response time, containment effectiveness, cleanup completion, and adherence to environmental regulations. The specific metrics and oversight procedures would be defined in the contract's statement of work and delivery order terms.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2350 MARINSHIP WAY STE A5, SAUSALITO, CA, 94965

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,211

Exercised Options: $11,211

Current Obligation: $11,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GALAM0002

IDV Type: BOA

Timeline