Naval Sea Systems Command awards $23.3M contract for barges and lighters, with a 2078-day duration

Contract Overview

Contract Amount: $23,261,076 ($23.3M)

Contractor: Sundial Marine TUG & Barge Works, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-07-23

End Date: 2009-03-31

Contract Duration: 2,078 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200310!036070!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2234 !A!N! !N! !20030723!20041023!030782718!030782718!963958152!N!SUNDIAL MARINE TUG & BARGE WOR!5605 NE SUNDIAL RD !TROUTDALE !OR!97060!74850!051!41!TROUTDALE !MULTNOMAH !OREGON !+000006913986!N!N!000000000000!1930!BARGES AND LIGHTERS, CARGO !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !336611!E! !3! ! ! ! ! !99990909!B! ! !B! !A!Y!J!2!006!K! !Z!N!Z! ! !Y!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TROUTDALE, MULTNOMAH County, OREGON, 97060

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to SUNDIAL MARINE TUG & BARGE WORKS, INC. for work described as: 200310!036070!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2234 !A!N! !N! !20030723!20041023!030782718!030782718!963958152!N!SUNDIAL MARINE TUG & BARGE WOR!5605 NE SUNDIAL RD !TROUTDALE !OR!97060!74850!051!41!TROUTDALE !MULTN… Key points: 1. Contract awarded for cargo barges and lighters, a critical component for naval logistics and operations. 2. The contract spans over 5 years, indicating a long-term need for these services. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contractor, Sundial Marine Tug & Barge Works, Inc., has secured this significant award. 5. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repairing, a specialized sector. 6. The contract's value of $23.3 million reflects the scale and complexity of the required services.

Value Assessment

Rating: fair

The contract value of $23.3 million for 2078 days of service for barges and lighters appears reasonable given the duration and specialized nature of shipbuilding and repair. Benchmarking against similar contracts for naval support vessels or maritime logistics services would provide a clearer picture of value for money. Without specific details on the type and capacity of barges and lighters, a precise per-unit cost comparison is difficult, but the overall award suggests a significant investment in fleet support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, certain sources may have been excluded prior to the final award. The presence of 6 bids suggests a moderate level of competition. The exclusion of sources warrants further investigation to understand its impact on price discovery and potential market limitations.

Taxpayer Impact: The full and open competition, despite potential source exclusions, aims to ensure fair pricing for taxpayers. A competitive process generally leads to better value by encouraging multiple vendors to offer their best terms.

Public Impact

The U.S. Navy benefits directly through the provision of essential cargo barges and lighters for its operations. Services delivered include the provision and potentially maintenance of maritime vessels crucial for logistical support. The geographic impact is likely centered around naval bases and operational areas where these vessels are deployed. Workforce implications may include employment opportunities within the shipbuilding and repair sector, specifically at Sundial Marine Tug & Barge Works, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Long contract duration could lead to price escalation if not managed effectively.
Dependence on a single contractor for a critical service.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Contract duration suggests a stable and predictable need for services.
Contractor is established in the shipbuilding and repair industry.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a specialized industry focused on the construction, repair, and conversion of ships and marine vessels. This contract for barges and lighters fits within the broader defense industrial base, supporting naval logistics and operational capabilities. The market for such specialized vessels is often characterized by high barriers to entry due to technical expertise, capital investment, and regulatory requirements. Comparable spending benchmarks would typically involve other contracts for similar maritime assets awarded by the Department of Defense or other maritime agencies.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to Sundial Marine Tug & Barge Works, Inc., a specific entity, suggests a focus on prime contractor capabilities rather than broad small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Sea Systems Command (NAVSEA) and the Department of Defense's contract management and inspection agencies. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality assurance provisions. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Vessel Construction
Maritime Logistics Support
Shipbuilding and Repair Services
Defense Procurement
Fleet Support Services

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration requires careful performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to SUNDIAL MARINE TUG & BARGE WORKS, INC.. 200310!036070!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2234 !A!N! !N! !20030723!20041023!030782718!030782718!963958152!N!SUNDIAL MARINE TUG & BARGE WOR!5605 NE SUNDIAL RD !TROUTDALE !OR!97060!74850!051!41!TROUTDALE !MULTNOMAH !OREGON !+000006913986!N!N!000000000000!1930!BARGES AND LIGHTERS, CARGO !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !336611!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is SUNDIAL MARINE TUG & BARGE WORKS, 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 $23.3 million.

What is the period of performance?

Start: 2003-07-23. End: 2009-03-31.

What is the specific type and capacity of the barges and lighters being procured under this contract?

The provided data identifies the item as 'BARGES AND LIGHTERS, CARGO' under NAICS code 336611. However, specific details regarding the dimensions, weight capacity, intended use (e.g., dry cargo, liquid cargo, specialized equipment), and any unique features of these barges and lighters are not explicitly stated in the abbreviated data. Further analysis would require accessing the full contract documentation or related technical specifications to understand the precise nature of the assets being acquired and their operational role within the Navy's fleet.

How does the awarded price of $23.3 million compare to market rates for similar barges and lighters?

Benchmarking the $23.3 million award against market rates for similar barges and lighters is challenging without more specific technical details of the vessels. Market rates can vary significantly based on size, capacity, material, age (if leased or refurbished), and specific functionalities. Given the contract duration of 2078 days (approximately 5.7 years), the total award translates to roughly $4 million per year. This figure needs to be compared against industry data for new construction, leasing, or long-term chartering of comparable naval or commercial cargo barges and lighters, considering factors like specialized naval requirements and the competitive landscape for defense contractors.

What are the key performance indicators (KPIs) and quality assurance measures outlined in the contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. Typically, such contracts would include clauses related to vessel seaworthiness, cargo handling efficiency, delivery timelines, maintenance schedules, and compliance with naval standards. Quality assurance would likely involve regular inspections, performance reviews, and adherence to technical specifications. The success of the contract hinges on the contractor's ability to meet these unstated but presumed performance and quality benchmarks throughout the 2078-day period.

What is the track record of Sundial Marine Tug & Barge Works, Inc. with similar government contracts?

The data indicates that Sundial Marine Tug & Barge Works, Inc. is the contractor for this $23.3 million award. To assess their track record with similar government contracts, one would need to examine their past performance history, including previous awards, contract values, durations, and performance ratings from agencies like the Department of Defense. Information on their experience with naval vessels, specifically barges and lighters, and their history of meeting delivery schedules and quality standards would be crucial for evaluating their capability and reliability as a government supplier.

What is the historical spending trend for 'BARGES AND LIGHTERS, CARGO' by the Department of the Navy?

The provided data snippet focuses on a single contract award. To understand the historical spending trend for 'BARGES AND LIGHTERS, CARGO' by the Department of the Navy, a comprehensive analysis of federal procurement databases (like FPDS or USASpending) over several fiscal years would be necessary. This would involve aggregating all contracts awarded under relevant Product Service Codes (PSCs) and NAICS codes related to barges and lighters. Analyzing this trend would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and identify major contractors and periods of significant procurement.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' signifies a procurement process that initially aimed for broad competition but subsequently excluded certain potential bidders before the final award. This could occur for various reasons, such as specific technical requirements, past performance issues with certain vendors, or national security considerations. While it allows for competition among the remaining eligible sources, the exclusion aspect warrants scrutiny to ensure it was justified and did not unduly limit competition or potentially inflate prices for taxpayers compared to a truly unrestricted full and open competition.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Tidewater Holdings, Inc. (UEI: 963958152)

Address: 5605 NE SUNDIAL RD, TROUTDALE, OR, 03

Business Categories: Category Business, Small Business

Timeline