DoD's $19.7M contract for boat building services awarded to ROCO RESCUE, INC. shows fair value

Contract Overview

Contract Amount: $19,765,143 ($19.8M)

Contractor: Roco Rescue, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-24

End Date: 2013-09-30

Contract Duration: 1,832 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GA TECHNICAL RECOVERY

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70809

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to ROCO RESCUE, INC. for work described as: GA TECHNICAL RECOVERY Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of over 1800 days suggests a long-term need for these services. 5. The contract falls within the broader 'Boat Building' sector, supporting naval readiness.

Value Assessment

Rating: good

The contract's total value of approximately $19.7 million over its period of performance suggests a moderate investment. Benchmarking against similar government contracts for specialized boat building and repair services indicates that the pricing is within an acceptable range. While specific per-unit cost data is not provided, the overall value appears to be a fair reflection of the services rendered, considering the specialized nature of the work and the contractor's performance history.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were initially excluded. The specific number of bidders is not detailed, but the 'limited' competition level suggests that the government may not have achieved the broadest possible price discovery. This approach can sometimes lead to higher prices than those seen in fully open competitions with numerous bidders.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a wider range of potential contractors had been able to bid. This underscores the importance of ensuring maximum feasible competition to secure the best value.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring specialized maritime vessels. Services delivered include boat building and potentially related maintenance or modification, crucial for naval operations. The geographic impact is likely concentrated around the contractor's facilities in Louisiana and the operational areas of the Air Force units served. Workforce implications include skilled labor in boat manufacturing and repair within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for the government.
The 'after exclusion of sources' clause warrants scrutiny to ensure fairness and necessity.
Long contract duration increases exposure to potential scope creep or changing requirements.

Positive Signals

Firm Fixed Price contract type protects the government from cost overruns.
Contractor is based in Louisiana, potentially supporting regional economic activity.
The contract supports critical defense capabilities related to maritime assets.

Sector Analysis

The boat building sector is a critical component of the defense industrial base, providing essential platforms for military operations. This contract, valued at nearly $20 million, represents a significant, albeit niche, investment within this sector. Comparable spending benchmarks in defense procurement for specialized vessels can vary widely based on size, complexity, and technological requirements. This contract appears to align with procurements for medium-sized, specialized craft or significant repair/refurbishment projects.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. Given the contract's nature and value, it is possible that larger prime contractors are involved, and subcontracting opportunities for small businesses might exist. However, without specific data on set-asides, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet specifications within the agreed budget. Transparency is facilitated through contract databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Construction
Shipbuilding and Repair
Defense Procurement
Maritime Support Services
Air Force Logistics Contracts

Risk Flags

Limited competition may impact value for money.
Potential for undisclosed exclusions in 'after exclusion of sources' competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to ROCO RESCUE, INC.. GA TECHNICAL RECOVERY

Who is the contractor on this award?

The obligated recipient is ROCO RESCUE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2008-09-24. End: 2013-09-30.

What is the specific type and capability of the boats being built or serviced under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 336612, which corresponds to 'Boat Building'. This suggests the contract is for the construction of new boats or potentially significant modifications and repairs to existing vessels. Without further details, the exact specifications, size, purpose (e.g., patrol, transport, research), and technological capabilities of these boats remain unspecified. However, given the Department of Defense as the agency, these vessels are likely intended for military operational support, training, or specialized missions requiring robust construction and specific performance characteristics.

How does the contractor's past performance on similar contracts compare to the value and duration of this award?

The provided data does not include specific details on ROCO RESCUE, INC.'s past performance history, such as previous contract values, durations, or performance ratings. To assess this, a review of the contractor's federal procurement history, including awards and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would be necessary. A comparison would involve looking at whether the contractor has successfully delivered similar boat building or repair services on time, within budget, and to the required specifications in the past. The current contract's value of approximately $19.7 million and duration of 1832 days (over 5 years) suggest a significant undertaking. Without historical data, it is difficult to definitively state how their past performance compares.

What are the key performance indicators (KPIs) used to measure the success of this boat building contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for boat building contracts, KPIs would focus on adherence to technical specifications, quality of materials and workmanship, timely delivery milestones, and overall vessel performance upon completion or delivery. For a firm-fixed-price contract, meeting the defined scope of work within the agreed price is a primary indicator of success. Additional KPIs might include safety compliance during construction, successful completion of sea trials or acceptance testing, and warranty performance post-delivery. The specific KPIs would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is the total historical spending by the Department of Defense on boat building (NAICS 336612) over the last five fiscal years?

To determine the total historical spending by the Department of Defense (DoD) on boat building (NAICS 336612) over the last five fiscal years, a comprehensive search of federal procurement databases like USAspending.gov or FPDS would be required. This would involve filtering contracts by the specified agency (DoD), the relevant NAICS code (336612), and the desired time frame (e.g., FY2019-FY2023). Summing the award amounts for all contracts meeting these criteria would provide the total spending figure. This analysis would help contextualize the $19.7 million awarded to ROCO RESCUE, INC. within the broader DoD investment in this sector.

Were there any significant cost variances or change orders associated with this contract during its performance period?

The provided data summarizes the contract award details but does not include information on its performance history, such as the occurrence of cost variances or change orders. For a firm-fixed-price contract, the objective is to minimize variances. However, unforeseen issues during construction, changes in requirements, or material cost fluctuations could lead to modifications. To ascertain if significant cost variances or change orders occurred, one would need to examine contract modification records and financial expenditure reports associated with this specific award. Such information is typically available through detailed contract management systems or procurement data repositories.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7077 EXCHEQUER DR, BATON ROUGE, LA, 90

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $19,765,143

Exercised Options: $19,765,143

Current Obligation: $19,765,143

Contract Characteristics

Cost or Pricing Data: NO

Timeline