USCG's Fast Response Cutter Program: $1.54 Billion Spent on Bollinger Shipyards' FRC-B Class Vessels

Contract Overview

Contract Amount: $1,536,934,925 ($1.5B)

Contractor: Bollinger Shipyards Lockport, L.L.C.

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-26

End Date: 2020-08-02

Contract Duration: 4,328 days

Daily Burn Rate: $355.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCG FAST RESPONSE CUTTER B CLASS (FRC-B)

Place of Performance

Location: LOCKPORT, LAFOURCHE County, LOUISIANA, 70374

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.54 billion to BOLLINGER SHIPYARDS LOCKPORT, L.L.C. for work described as: USCG FAST RESPONSE CUTTER B CLASS (FRC-B) Key points: 1. The U.S. Coast Guard has invested over $1.5 billion in Bollinger Shipyards for the FRC-B class cutters. 2. Bollinger Shipyards is the sole contractor for this specific vessel class, indicating a lack of direct competition for these assets. 3. The program faces potential risks related to single-source reliance and long-term sustainment costs. 4. Spending is concentrated within the shipbuilding and repair sector, a critical area for national maritime security.

Value Assessment

Rating: fair

The total award amount of $1.54 billion for 6 vessels suggests a significant per-unit cost. Without specific per-unit pricing or comparison data for similar specialized cutters, a precise value assessment is difficult. However, the firm fixed-price contract type offers some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract award itself was under full and open competition, Bollinger Shipyards appears to be the sole provider for the FRC-B class. This suggests that competition may have occurred during the initial contract award, but subsequent orders or modifications might have limited further price discovery.

Taxpayer Impact: The firm fixed-price nature of the contract aims to protect taxpayers from cost overruns, but the long-term implications of a single supplier for this critical asset class warrant monitoring.

Public Impact

Ensures U.S. maritime security by providing essential patrol vessels for the Coast Guard. Supports domestic shipbuilding jobs and infrastructure within Louisiana. The FRC-B class contributes to the Coast Guard's operational readiness and ability to respond to various threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source reliance for FRC-B class vessels.
Potential for increased long-term sustainment costs.
Limited transparency on per-unit cost evolution over time.

Positive Signals

Firm fixed-price contract provides cost certainty.
Supports critical national security mission.
Long-standing relationship with a domestic shipyard.

Sector Analysis

This contract falls under the Ship Building and Repairing sector, which is vital for national defense and maritime operations. Benchmarks for similar specialized naval vessel construction can vary widely based on size, complexity, and technology.

Small Business Impact

The data indicates that Bollinger Shipyards, L.L.C. is the primary contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific contract award.

Oversight & Accountability

The U.S. Coast Guard, under the Department of Homeland Security, is responsible for overseeing this contract. The firm fixed-price structure suggests a degree of accountability for the contractor to deliver within the agreed budget.

Related Government Programs

Ship Building and Repairing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source dependency.
Potential for cost creep in sustainment.
Lack of competitive pressure for future enhancements.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.54 billion to BOLLINGER SHIPYARDS LOCKPORT, L.L.C.. USCG FAST RESPONSE CUTTER B CLASS (FRC-B)

Who is the contractor on this award?

The obligated recipient is BOLLINGER SHIPYARDS LOCKPORT, L.L.C..

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 $1.54 billion.

What is the period of performance?

Start: 2008-09-26. End: 2020-08-02.

What is the average per-unit cost of the FRC-B class cutters, and how does it compare to similar vessels procured by other maritime agencies?

The total award of $1.54 billion for 6 vessels averages to approximately $256 million per cutter. Direct comparisons are challenging without detailed specifications, but this figure appears substantial. Further analysis would require benchmarking against comparable patrol or littoral combat vessels procured by agencies like the Navy or international coast guards to assess value for money.

What are the long-term risks associated with relying on a single supplier for the FRC-B class cutters, particularly concerning maintenance, upgrades, and future production?

Sole-source reliance poses risks of price escalation for future orders, limited innovation due to lack of competitive pressure, and potential supply chain vulnerabilities if the sole supplier faces operational issues. For maintenance and upgrades, the Coast Guard may face higher costs and longer lead times without alternative providers capable of servicing or replicating the FRC-B design.

How effectively has the firm fixed-price contract structure managed cost control and ensured the delivery of the FRC-B class cutters within budget expectations?

The firm fixed-price (FFP) contract is designed to shift cost risk to the contractor, providing a degree of budget certainty for the government. While the total award amount is known, the effectiveness in managing cost control hinges on the initial pricing accuracy and the contractor's ability to execute within that price. Without data on contract modifications or cost overruns, it's difficult to definitively assess the FFP's success in this specific program.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCG23-07-R-AFR001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8365 HIGHWAY 308, LOCKPORT, LA, 70374

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,540,380,226

Exercised Options: $1,536,934,925

Current Obligation: $1,536,934,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline