DOT Awards $22.7M Contract for Ice Breaking Tug Boat Construction to Gulf Island Shipyards
Contract Overview
Contract Amount: $22,670,784 ($22.7M)
Contractor: Gulf Island Shipyards LLC
Awarding Agency: Department of Transportation
Start Date: 2017-09-28
End Date: 2020-09-01
Contract Duration: 1,069 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF ICE BREAKING CLASS TUG BOAT
Place of Performance
Location: HOUMA, TERREBONNE County, LOUISIANA, 70363
Plain-Language Summary
Department of Transportation obligated $22.7 million to GULF ISLAND SHIPYARDS LLC for work described as: CONSTRUCTION OF ICE BREAKING CLASS TUG BOAT Key points: 1. The contract value of $22.7 million for a specialized vessel indicates significant investment in maritime infrastructure. 2. Competition was full and open after exclusion of sources, suggesting a structured procurement process. 3. The firm fixed-price contract type aims to control costs, but potential risks exist in specialized shipbuilding. 4. The sector is maritime construction, a niche area with specific technical requirements and market dynamics.
Value Assessment
Rating: good
The $22.7 million price for a custom-built ice-breaking tug boat appears reasonable given the specialized nature of the vessel and the firm fixed-price contract. Benchmarking against similar complex maritime construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized 'full and open competition after exclusion of sources,' indicating a competitive process that allowed broad participation while potentially addressing specific source restrictions. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive bidding process for this specialized vessel aims to ensure taxpayer funds are used efficiently for critical infrastructure.
Public Impact
Enhances U.S. Great Lakes maritime transportation capabilities, particularly during winter months. Supports economic activity by ensuring year-round navigation on the St. Lawrence Seaway. Represents a significant investment in national maritime security and infrastructure resilience.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise in specialized shipbuilding.
- Long lead times and complex supply chains in shipbuilding can introduce delays.
- Dependence on a single contractor for specialized vessel construction.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Competition ensures a reasonable price was likely achieved.
- Investment in critical infrastructure for economic and security benefits.
Sector Analysis
The maritime construction sector, particularly for specialized vessels like ice-breaking tugs, involves high technical expertise and significant capital investment. Spending benchmarks are difficult to establish due to the unique nature of each project, but this contract aligns with typical investments for such critical assets.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses in this contract. The specialized nature of shipbuilding may limit opportunities for smaller firms unless they are part of a larger supply chain.
Oversight & Accountability
The contract was awarded by the Saint Lawrence Seaway Development Corporation, an agency within the Department of Transportation, suggesting oversight from a federal entity focused on maritime infrastructure. The firm fixed-price nature of the contract also implies a degree of cost control oversight.
Related Government Programs
- Ship Building and Repairing
- Department of Transportation Contracting
- Saint Lawrence Seaway Development Corporation Programs
Risk Flags
- Specialized shipbuilding complexity
- Potential for schedule delays
- Long-term operational maintenance costs
- Dependence on specific shipyard capabilities
Tags
ship-building-and-repairing, department-of-transportation, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $22.7 million to GULF ISLAND SHIPYARDS LLC. CONSTRUCTION OF ICE BREAKING CLASS TUG BOAT
Who is the contractor on this award?
The obligated recipient is GULF ISLAND SHIPYARDS LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Saint Lawrence Seaway Development Corporation).
What is the total obligated amount?
The obligated amount is $22.7 million.
What is the period of performance?
Start: 2017-09-28. End: 2020-09-01.
What are the specific performance requirements and expected lifespan of the ice-breaking tug boat?
The contract specifies a duration of 1069 days, implying a significant construction timeline. While not detailed here, the vessel's performance requirements would be critical for its operational effectiveness in breaking ice and maintaining navigation. Its expected lifespan is crucial for assessing the long-term value of this investment.
What were the key factors that led to the exclusion of certain sources in the competition?
The exclusion of sources in a 'full and open competition' scenario typically occurs when specific technical capabilities, certifications, or security clearances are required that only a limited number of entities possess. This ensures the government procures a vessel that meets stringent operational and safety standards.
How does the cost of this tug boat compare to similar vessels procured by other maritime agencies or countries?
Benchmarking this $22.7 million contract against similar ice-breaking tugs is challenging due to the specialized nature of the vessel and varying market conditions. However, the firm fixed-price structure and competitive award suggest an effort to achieve value. A detailed comparison would require access to data on comparable procurements.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DTSL5517R0050
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gulf Island Fabrication, Inc. (UEI: 139240618)
Address: 301 GULF ISLAND RD, HOUMA, LA, 70363
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,670,784
Exercised Options: $22,670,784
Current Obligation: $22,670,784
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-28
Current End Date: 2020-09-01
Potential End Date: 2020-09-01 00:00:00
Last Modified: 2020-08-13
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