DoD awards $32.6M contract for research vessel construction, highlighting shipbuilding expertise

Contract Overview

Contract Amount: $32,602,242 ($32.6M)

Contractor: Woods Hole Oceanographic Institution

Awarding Agency: Department of Defense

Start Date: 2017-03-10

End Date: 2022-03-09

Contract Duration: 1,825 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF CHARTER PARTY AGREEMENT FOR THE RESEARCH VESSEL AGOR 25

Place of Performance

Location: WOODS HOLE, BARNSTABLE County, MASSACHUSETTS, 02543

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION for work described as: IGF::OT::IGF CHARTER PARTY AGREEMENT FOR THE RESEARCH VESSEL AGOR 25 Key points: 1. Contract awarded to a single, experienced research institution, suggesting specialized capabilities. 2. The contract duration of 5 years indicates a significant, long-term project. 3. The vessel's purpose is likely critical for naval research and development operations. 4. The award method suggests a robust procurement process was followed. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $32.6 million for the construction of a research vessel appears reasonable given the specialized nature of such projects. Benchmarking against similar, complex shipbuilding contracts is difficult without more specific vessel specifications. However, the fixed-price nature of the award (implied by 'COST NO FEE' which typically means the government covers costs but the contractor does not profit beyond cost recovery, or is a fixed fee contract) suggests a degree of cost control was established during negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive field.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of obtaining the best value through a wide range of offers, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Navy and its research initiatives, which will gain a new, advanced research platform. The contract delivers a specialized research vessel, crucial for conducting scientific studies and operational testing at sea. The geographic impact is primarily within Massachusetts, where Woods Hole Oceanographic Institution is located, potentially creating local jobs and economic activity. The workforce implications include skilled labor in shipbuilding, marine engineering, and naval architecture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business set-aside could limit opportunities for smaller firms in the supply chain.
The long duration of the contract might present challenges for smaller, agile companies to participate in future phases or related work.

Positive Signals

Award to a well-established institution like Woods Hole suggests a high likelihood of successful project completion.
The use of full and open competition indicates a commitment to a fair and transparent procurement process.

Sector Analysis

The shipbuilding and repair industry is a significant sector within the broader defense and maritime industries. This contract falls under the 'Ship Building and Repairing' NAICS code (336611). The market for specialized research vessels is niche, often dominated by a few key players with the necessary expertise and infrastructure. The value of this contract is moderate within the context of large naval shipbuilding programs, but substantial for a single research platform.

Small Business Impact

The contract does not indicate a specific small business set-aside. While Woods Hole Oceanographic Institution is a large research organization, the subcontracting plan is crucial for understanding the impact on small businesses. It is important to assess whether opportunities for small business participation in specialized areas of shipbuilding, component supply, or technical services were actively sought and facilitated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into fraud, waste, or abuse. Transparency is generally maintained through contract award notices and reporting requirements, though detailed project progress reports may not always be publicly available.

Related Government Programs

Naval Research Programs
Oceanographic Research Vessels
Shipbuilding and Repair Contracts
Department of Defense Research and Development

Risk Flags

Potential for cost overruns in complex shipbuilding.
Schedule delays due to specialized component lead times.
Supply chain risks for unique materials or equipment.
Integration challenges for advanced scientific instrumentation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION. IGF::OT::IGF CHARTER PARTY AGREEMENT FOR THE RESEARCH VESSEL AGOR 25

Who is the contractor on this award?

The obligated recipient is WOODS HOLE OCEANOGRAPHIC INSTITUTION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.6 million.

What is the period of performance?

Start: 2017-03-10. End: 2022-03-09.

What is the specific capability and intended mission of the research vessel AGOR 25?

The research vessel AGOR 25, awarded under this contract, is intended to be a state-of-the-art platform for oceanographic research. While specific mission details are not provided in the data, vessels of this type typically support a wide range of scientific endeavors, including marine biology, geology, oceanography, and climate studies. They are equipped with advanced laboratories, sensor arrays, and deployment systems for submersibles, buoys, and sampling equipment. The AGOR (Auxiliary General Ocean Research) designation suggests it will be operated by a civilian institution but serve a general research purpose for the Navy and broader scientific community, likely focusing on areas critical to national security and environmental understanding.

How does the $32.6 million cost compare to similar research vessel constructions?

Benchmarking the $32.6 million cost requires detailed comparison with similar research vessels, considering size, complexity, technological features, and the specific shipyard's overhead. Research vessels can range significantly in price; smaller, less equipped vessels might cost under $10 million, while highly specialized, large research platforms can exceed $100 million. Given the 'COST NO FEE' award type and the duration, this figure suggests a mid-range cost for a modern, capable research vessel. Without specific technical specifications and market data for comparable vessels built around 2017, a precise value-for-money assessment is challenging. However, the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with the construction of a complex research vessel like AGOR 25?

The primary risks in constructing a complex research vessel like AGOR 25 include technical challenges in integrating advanced scientific equipment with naval architecture, potential cost overruns due to unforeseen design issues or material price fluctuations, and schedule delays. Specialized components and systems may have long lead times or be subject to supply chain disruptions. Furthermore, ensuring compliance with stringent safety and environmental regulations adds another layer of complexity. The 'COST NO FEE' contract type, while aiming to control costs, can shift some financial risk to the contractor, potentially impacting their motivation or ability to absorb unexpected expenses. Effective project management, robust risk mitigation strategies, and clear communication channels are crucial to address these potential issues.

What is the track record of Woods Hole Oceanographic Institution in managing large federal contracts for vessel construction?

Woods Hole Oceanographic Institution (WHOI) has a long and distinguished track record in managing large-scale oceanographic research projects and operating research vessels. As a leading institution in marine science, WHOI has extensive experience in the design, construction, and operation of sophisticated research platforms. They have managed numerous complex federal contracts, often funded by agencies like the National Science Foundation (NSF) and the Office of Naval Research (ONR). While this specific contract is for the construction of AGOR 25, WHOI's history suggests a strong capability in overseeing such projects, ensuring scientific objectives are met, and managing the associated budgets and timelines effectively. Their experience likely contributed to their selection for this significant undertaking.

How has federal spending on research vessels evolved over the past decade?

Federal spending on research vessels has seen fluctuations over the past decade, influenced by budget priorities, scientific needs, and the lifecycle of existing fleets. There has been a consistent need for modern, capable research platforms to support critical scientific research, particularly in areas like climate change, deep-sea exploration, and national security. Investments often focus on replacing aging vessels or acquiring new capabilities to meet evolving research demands. Funding typically comes from agencies like the National Science Foundation (NSF), the National Oceanic and Atmospheric Administration (NOAA), and defense-related agencies like the Department of the Navy. The trend has generally been towards acquiring more technologically advanced and environmentally sustainable vessels, which can lead to higher per-unit costs but offer greater research efficiency and capability.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 266 WOODS HOLE RD, WOODS HOLE, MA, 02543

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,524,183

Exercised Options: $37,524,183

Current Obligation: $32,602,242

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline