DHS Coast Guard Awards $11.88M for Ship Building Parts, Competed Under SAP
Contract Overview
Contract Amount: $11,880 ($11.9K)
Contractor: Arrow Electronics, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-01-02
End Date: 2026-05-01
Contract Duration: 850 days
Daily Burn Rate: $14/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Ship Building and Repairing
Official Description: 5999 01-674-9985 BLADE, DUAL
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $11,880 to ARROW ELECTRONICS, INC. for work described as: 5999 01-674-9985 BLADE, DUAL Key points: 1. The award of $11.88 million for ship building parts indicates significant investment in naval infrastructure. 2. Competition under SAP suggests a streamlined procurement process, potentially impacting price discovery. 3. The firm fixed price contract type mitigates cost overrun risks for the government. 4. The sector is Ship Building and Repairing, with a PSC code not specified.
Value Assessment
Rating: good
The contract value of $11.88 million for ship building parts appears reasonable given the duration and the nature of the goods. Benchmarking against similar, specific component procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: The use of SAP suggests an effort to balance speed and cost-effectiveness, with the ultimate taxpayer impact depending on the negotiated price within the limited competitive landscape.
Public Impact
Ensures operational readiness of the U.S. Coast Guard fleet. Supports the maritime security and defense capabilities of the nation. Contributes to the shipbuilding and repair industry supply chain. Potential for job creation within the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific PSC code hinders detailed sector benchmarking.
- Limited competition under SAP may not guarantee best value.
- Contract duration extends over two fiscal years.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Awarded to a known entity, ARROW ELECTRONICS, INC.
- Procurement falls under the Department of Homeland Security's critical mission.
Sector Analysis
The Ship Building and Repairing sector is capital-intensive and critical for national security. Spending benchmarks vary widely based on the complexity and scale of projects, with component procurements like this being a necessary part of maintaining fleet readiness.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The prime contractor, ARROW ELECTRONICS, INC., is a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Homeland Security, specifically the U.S. Coast Guard, is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure compliance and performance.
Related Government Programs
- Ship Building and Repairing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition due to SAP.
- Lack of detailed item specification for cost benchmarking.
- Potential for higher prices compared to full and open competition.
- Contract duration spans multiple fiscal years.
Tags
ship-building-and-repairing, department-of-homeland-security, co, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11,880 to ARROW ELECTRONICS, INC.. 5999 01-674-9985 BLADE, DUAL
Who is the contractor on this award?
The obligated recipient is ARROW ELECTRONICS, 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 $11,880.
What is the period of performance?
Start: 2024-01-02. End: 2026-05-01.
What specific ship building parts were procured under this contract, and how do their unit costs compare to industry standards?
The provided data identifies the item as 'BLADE, DUAL' but lacks specific details on the exact type, material, or technical specifications. Without this granular information, a precise unit cost comparison against industry standards is not feasible. Further investigation into the contract line items would be necessary to assess the value for money on a per-unit basis.
What are the potential risks associated with procuring ship building parts under Simplified Acquisition Procedures (SAP) for a contract valued at nearly $12 million?
Procuring nearly $12 million worth of goods under SAP, which is typically for acquisitions below certain thresholds, carries risks. These include potentially limited price competition, reduced transparency, and a higher chance of not achieving the best possible value for the government. While SAP aims for efficiency, it may not attract the widest range of qualified vendors, potentially impacting long-term cost savings and innovation.
How effective is the firm fixed price contract type in ensuring the Coast Guard receives high-quality ship building parts within the awarded budget?
The firm fixed price (FFP) contract type is generally effective in controlling costs, as the contractor assumes the risk of cost overruns. This provides budget certainty for the Coast Guard. However, the effectiveness in ensuring high quality depends heavily on the clarity of the specifications and the contractor's commitment to meeting them. Robust quality assurance and inspection processes are crucial to complement the FFP structure.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 70Z08524Q39002B00
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9201, EAST DRY CREEK ROAD, CENTENNIAL, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,880
Exercised Options: $11,880
Current Obligation: $11,880
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-01-02
Current End Date: 2026-05-01
Potential End Date: 2026-06-01 00:00:00
Last Modified: 2026-04-01
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