DoD's $143.8M ship repair contract with Corrpro Companies shows long-term engagement with a single provider

Contract Overview

Contract Amount: $14,377,758 ($14.4M)

Contractor: Corrpro Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-01-06

End Date: 2008-09-30

Contract Duration: 2,459 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE

Sector: Defense

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to CORRPRO COMPANIES, INC. for work described as: Key points: 1. The contract's duration suggests a sustained need for specialized ship repair services. 2. A single award over an extended period may indicate limited market dynamism or specific contractor capabilities. 3. The cost-plus incentive pricing structure aims to balance contractor performance with cost control. 4. The absence of small business set-asides warrants further investigation into subcontracting opportunities. 5. Performance context is crucial to understand if the extended engagement yielded optimal value. 6. The contract's value, while substantial, needs benchmarking against similar naval repair services.

Value Assessment

Rating: fair

The contract's total value of $143.8 million over approximately 6.7 years represents a significant investment. Benchmarking this against comparable long-term ship repair contracts for naval vessels is essential to assess value for money. The cost-plus incentive fee (CPIF) structure suggests an attempt to incentivize efficiency, but the overall cost-effectiveness depends heavily on the achieved performance metrics and the final negotiated costs. Without direct comparisons to similar services or detailed performance data, a definitive value assessment remains challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of four bidders (no=4) suggests a reasonable level of competition at the outset. However, the fact that Corrpro Companies, Inc. received the sole award for this substantial, long-term contract warrants a closer look at the competitive landscape and the specific technical or cost proposals that led to this outcome.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to better value. The presence of multiple bidders suggests that taxpayer dollars were likely used efficiently through a competitive process.

Public Impact

Naval operations benefit from the sustained availability of specialized ship repair and maintenance. The contract supports the readiness and operational capability of the U.S. Navy's fleet. Geographic impact is likely concentrated around naval bases or shipyards where Corrpro operates. Workforce implications include employment for skilled trades in shipbuilding and repair sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term sole award to one contractor may limit future competition and innovation.
Cost-plus incentive fee contracts can sometimes lead to cost overruns if not managed tightly.
Lack of explicit small business set-aside raises questions about broader economic impact.

Positive Signals

Full and open competition indicates an effort to secure the best value through multiple bids.
The contract's duration suggests a stable, long-term relationship that can foster expertise.
The incentive fee structure aims to align contractor performance with government objectives.

Sector Analysis

The shipbuilding and repair industry is a critical component of the defense industrial base, supporting naval readiness. This contract falls within the broader category of defense contracting, specifically focusing on maintenance and repair services for naval vessels. The market for such specialized services can be concentrated, with a few key players possessing the necessary certifications, infrastructure, and expertise. The value of this contract, at $143.8 million, is significant within this niche sector, reflecting the complexity and scale of naval ship maintenance.

Small Business Impact

The contract details indicate that this was not set aside for small businesses (sb=false) and there is no indication of a small business subcontracting plan being a primary focus (ss=false). This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely arise through subcontracting if Corrpro Companies, Inc. chooses to engage them. Further analysis would be needed to determine if subcontracting goals were established or met, impacting the broader small business ecosystem.

Oversight & Accountability

Oversight for this Department of Defense contract would typically involve contracting officers, program managers, and potentially inspectors general. The cost-plus incentive fee structure necessitates rigorous monitoring of performance metrics and cost expenditures to ensure value and prevent overruns. Transparency would be facilitated through contract reporting mechanisms and public contract databases, though detailed performance reviews are often internal.

Related Government Programs

Naval Ship Maintenance and Repair
Defense Industrial Base Contracts
Shipbuilding and Repair Services
Department of the Navy Procurement

Risk Flags

Long-term sole award
Potential for cost overruns in CPIF contracts
Limited small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to CORRPRO COMPANIES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CORRPRO COMPANIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2002-01-06. End: 2008-09-30.

What was the specific nature of the ship repair services provided under this contract?

This contract (ID: DCA) with Corrpro Companies, Inc. was primarily for ship building and repairing services, as indicated by the North American Industry Classification System (NAICS) code 336611. While the specific details of the repairs are not fully elaborated in the provided data, this typically encompasses a wide range of activities including hull maintenance, structural repairs, system overhauls (e.g., propulsion, electrical, auxiliary systems), and potentially upgrades or modifications to naval vessels. The duration and value suggest these were likely substantial, ongoing maintenance and repair efforts rather than isolated incidents, crucial for maintaining the operational readiness of the Navy's fleet.

How did Corrpro Companies, Inc.'s performance compare to other potential bidders or historical contracts?

The provided data indicates that Corrpro Companies, Inc. was awarded this $143.8 million contract under full and open competition with four bidders. However, without access to the specific performance evaluations, quality metrics, or cost performance indices (CPI) associated with this contract, a direct comparison to other bidders or historical performance is not possible. The contract's duration (2002-2008) and its cost-plus incentive fee (CPIF) structure suggest that performance was a key consideration. Future analysis would require reviewing contractor performance assessment reporting (CPAR) data, if available, to gauge how well Corrpro met or exceeded expectations relative to the contract's objectives and potentially other firms in the market.

What were the primary risks associated with this long-term ship repair contract?

Several risks are inherent in a long-term, high-value contract like this $143.8 million ship repair agreement. A primary risk is cost escalation, particularly with a Cost Plus Incentive Fee (CPIF) structure, where unforeseen technical challenges or scope creep could drive costs beyond initial projections, despite incentive clauses. Another significant risk is contractor performance; a prolonged engagement with a single provider could lead to complacency or a decline in service quality if not rigorously overseen. Furthermore, the specialized nature of naval ship repair means that reliance on a single contractor could create vulnerabilities if that contractor faces financial instability, labor disputes, or capacity issues. Finally, the long duration increases the risk of technological obsolescence or changes in naval requirements that the contract might not adequately address.

How does the $143.8 million spending compare to typical annual spending on naval ship repair?

The total contract value of $143.8 million spread over approximately 6.7 years (from January 6, 2002, to September 30, 2008) averages to roughly $21.5 million per year. This figure needs to be contextualized within the broader Department of the Navy's budget for ship maintenance and repair. The Navy's annual spending on maintenance, overhaul, and repair can fluctuate significantly based on fleet size, ship age, operational tempo, and strategic priorities, often running into billions of dollars annually across the entire fleet. Therefore, while $21.5 million annually is a substantial sum for a single contract, it represents a portion of the overall naval maintenance expenditure. Benchmarking against specific ship classes or repair types would provide a more precise comparison.

What is the significance of the 'Cost Plus Incentive Fee' (CPIF) contract type for this agreement?

The Cost Plus Incentive Fee (CPIF) contract type signifies a shared risk and reward structure between the government and the contractor, Corrpro Companies, Inc. Under CPIF, the final contract price is determined by allowable costs incurred by the contractor plus a fee that is adjusted based on the contractor's performance relative to target cost and target profit goals. This structure is typically used when the final costs are uncertain but can be reasonably estimated, and the government wants to incentivize the contractor to control costs and meet performance targets. For this $143.8 million ship repair contract, the CPIF aimed to encourage Corrpro to perform efficiently and effectively, potentially leading to cost savings for the government if targets were met or exceeded, while also providing a mechanism for higher profit if performance was exceptional.

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: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

Parent Company: Insituform Technologies, LLC (UEI: 039406616)

Address: 1235 JEFFERSON DAVIS HWY ,, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline