Coast Guard awards $1.5M contract for oil spill response services to Redwood Shore Diving, Inc

Contract Overview

Contract Amount: $15,355 ($15.4K)

Contractor: Redwood Shore Diving, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-25

End Date: 2026-04-24

Contract Duration: 58 days

Daily Burn Rate: $265/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FPN UCGPA26015 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: SAN RAFAEL, MARIN County, CALIFORNIA, 94901

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15,355 to REDWOOD SHORE DIVING, INC. for work described as: FPN UCGPA26015 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 oil spill and hazardous chemical incident response. 2. Single award indicates potential for limited competition or specialized service. 3. Short duration suggests a specific, immediate need for response capabilities. 4. Geographic focus on California highlights regional environmental protection efforts. 5. Time and Materials pricing structure requires careful monitoring for cost control.

Value Assessment

Rating: fair

The contract value of $1.54 million for a two-month period appears reasonable for specialized emergency response services. However, without detailed breakdowns of labor, materials, and equipment costs, a precise value-for-money assessment is challenging. Benchmarking against similar rapid-response contracts for oil spill mitigation would provide better context for 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 was solicited. This approach is typically used when there is a compelling justification, such as a unique capability or an urgent need where competition is not feasible. The lack of competition means potential for higher pricing and less opportunity for innovative solutions from a broader market.

Taxpayer Impact: Sole-source awards can limit taxpayer savings by bypassing competitive bidding processes that typically drive down costs. This necessitates strong internal oversight to ensure the price paid is fair and reasonable.

Public Impact

The U.S. Coast Guard benefits by securing essential services for environmental protection. The public benefits from rapid response to oil spills and hazardous chemical incidents, minimizing environmental damage. Services are geographically focused on California, addressing specific regional risks. The contract supports a specialized workforce skilled in emergency response and environmental remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Time and Materials contract type can be susceptible to cost overruns if not closely managed.
Short contract duration might indicate a reactive rather than proactive approach to preparedness.

Positive Signals

Addresses a critical need for environmental protection and emergency response.
Focuses on a specific geographic area with known environmental risks.
Utilizes a contractor with presumably specialized skills for oil spill mitigation.

Sector Analysis

The oil spill and hazardous materials response sector involves specialized companies providing critical environmental services. This contract fits within the broader 'Remediation Services' NAICS code, supporting government efforts to mitigate environmental disasters. Spending in this area can fluctuate based on incident frequency and severity, but preparedness contracts are essential for national security and environmental stewardship.

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 information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages small businesses for specialized support.

Oversight & Accountability

Oversight will likely be managed by the U.S. Coast Guard contracting and program officials. Given the sole-source nature and Time and Materials structure, rigorous monitoring of labor hours, material costs, and equipment usage is crucial to ensure accountability and prevent waste. Transparency would be enhanced by public reporting of performance metrics and cost justifications.

Related Government Programs

Environmental Protection Agency (EPA) Oil Spill Response
NOAA Marine Pollution Response
Department of the Interior Oil Spill Preparedness

Risk Flags

Sole-source award requires strong justification and price reasonableness checks.
Time and Materials contract type necessitates vigilant oversight to control costs.
Short contract duration may indicate a reactive procurement rather than proactive preparedness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15,355 to REDWOOD SHORE DIVING, INC.. FPN UCGPA26015 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 $15,355.

What is the period of performance?

Start: 2026-02-25. End: 2026-04-24.

What is the track record of Redwood Shore Diving, Inc. in performing similar oil spill response services for federal agencies?

Information regarding Redwood Shore Diving, Inc.'s specific track record with federal agencies for oil spill response is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Understanding their experience with the U.S. Coast Guard or other relevant environmental agencies is key to evaluating their capability and reliability for this critical service. Without this data, the award relies heavily on the agency's due diligence in selecting a capable contractor for a sole-source requirement.

How does the pricing structure (Time and Materials) compare to industry standards for emergency response services?

Time and Materials (T&M) contracts are common for emergency response where the scope of work and duration are difficult to predict precisely. However, T&M contracts carry inherent risks of cost escalation if not managed diligently. Industry standards for emergency response often favor fixed-price elements for predictable services (e.g., equipment mobilization) and T&M for unpredictable labor and unforeseen material needs. Benchmarking the proposed hourly rates for labor, equipment, and material markups against industry averages for specialized spill response is essential. The U.S. Coast Guard must ensure that the rates are fair and reasonable and implement strict controls on hours and materials to mitigate potential overspending.

What specific risks are associated with a sole-source award for oil spill response, and how are they mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to taxpayers paying more than necessary. Additionally, it limits the agency's access to a wider range of innovative solutions or potentially more cost-effective providers. Mitigation strategies include rigorous price negotiation, detailed cost analysis by the contracting officer, and potentially requiring the contractor to provide justification for their pricing based on market data or historical costs. The U.S. Coast Guard must ensure that the justification for sole-source procurement is robust and that the final negotiated price reflects fair market value.

What are the key performance indicators (KPIs) that will be used to measure the effectiveness of Redwood Shore Diving, Inc.'s response efforts?

Key performance indicators for oil spill response contracts typically focus on response time, containment effectiveness, cleanup efficiency, environmental impact mitigation, and adherence to safety protocols. Specific KPIs might include the time taken to mobilize resources, the percentage of spilled material recovered, the extent of environmental damage prevented or minimized, and compliance with all relevant environmental regulations and reporting requirements. The contract should clearly define these metrics, establish baseline targets, and outline the process for performance monitoring and evaluation by the U.S. Coast Guard to ensure the contractor meets the critical objectives of the service.

How does this contract's value and duration compare to historical U.S. Coast Guard spending on similar oil spill response services?

The provided data indicates a $1.54 million contract for a two-month period. To compare this to historical spending, one would need access to historical contract databases for the U.S. Coast Guard, specifically looking for contracts with similar scope (oil spill/hazardous chemical response), duration, and geographic focus (California). Analyzing past awards for similar services, including their values, durations, and whether they were competed or sole-source, would reveal trends. This comparison is crucial for assessing whether the current award represents a fair market price and is consistent with the agency's typical approach to procuring such essential, albeit often unpredictable, services.

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: $15,355

Exercised Options: $15,355

Current Obligation: $15,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GALAM0002

IDV Type: BOA

Timeline