DoD's $14.2M Ship Repair Contract with Corrpro Raises Questions on Value and Competition
Contract Overview
Contract Amount: $14,283,387 ($14.3M)
Contractor: Corrpro Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-03-29
End Date: 2009-09-30
Contract Duration: 2,377 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH (CITY) County, VIRGINIA, 23705
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.3 million to CORRPRO COMPANIES, INC. for work described as: Key points: 1. The contract awarded to Corrpro Companies, Inc. for ship building and repairing services totaled $14,283,387. 2. Awarded under full and open competition, the contract's effectiveness and value warrant further scrutiny given its duration and cost-plus incentive structure. 3. The lack of small business participation is noted, potentially limiting broader economic impact. 4. The sector is critical for national defense, but efficient spending is paramount.
Value Assessment
Rating: questionable
The contract utilized a Cost Plus Incentive Fee (CPIF) structure over nearly 6 years. While CPIF can incentivize efficiency, the total award amount of $14.2M for ship repair and building, without clear benchmarks, makes assessing value for money difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the extended duration and CPIF structure may have impacted the final price discovery and overall cost-effectiveness.
Taxpayer Impact: Taxpayer funds were used for this contract. The effectiveness of the competition and the final pricing will determine the ultimate impact on taxpayers.
Public Impact
Significant taxpayer investment in naval infrastructure and maintenance. Potential for cost overruns in cost-plus contracts if not managed tightly. Importance of robust oversight for long-term defense contracts. Limited visibility into the specific services rendered for the $14.2M expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee structure can lead to higher costs if not managed.
- Long contract duration (nearly 6 years) may indicate potential for scope creep or inefficiencies.
- Lack of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract aimed at critical defense infrastructure.
Sector Analysis
The Department of Defense's spending in ship building and repairing is substantial, crucial for maintaining naval capabilities. Benchmarks for similar contracts are often proprietary or highly specific, making direct comparisons challenging without detailed service scope.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth within the defense industrial base and could limit the diversity of solutions.
Oversight & Accountability
The contract's long duration and cost-plus incentive fee structure necessitate strong oversight from the Department of the Navy to ensure cost control and adherence to the contract's objectives.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Long contract duration may indicate inefficiencies or scope creep.
- Lack of small business participation.
- Limited transparency on specific performance metrics and value achieved.
Tags
ship-building-and-repairing, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 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 $14.3 million.
What is the period of performance?
Start: 2003-03-29. End: 2009-09-30.
What specific performance metrics were used to determine the 'incentive' portion of the CPIF contract, and how were they achieved?
The effectiveness of the incentive fee structure hinges on clearly defined performance metrics tied to cost savings, schedule adherence, or quality improvements. Without access to the contract's specific performance work statement and incentive clauses, it's impossible to ascertain if these metrics were appropriate or if Corrpro successfully met them, impacting the final value delivered to the DoD.
How did the full and open competition process ensure the most cost-effective solution for the government over the contract's duration?
While 'full and open competition' suggests a broad solicitation, the long duration and cost-plus incentive fee structure raise questions about long-term cost control. The government relies heavily on the contractor's efficiency and the effectiveness of oversight to manage costs. Without detailed bid analysis or post-award cost reviews, it's difficult to confirm if this competitive approach truly yielded the best value compared to alternative contracting methods or fixed-price options.
What was the government's strategy for managing potential cost overruns inherent in a Cost Plus Incentive Fee contract for ship repair?
Managing cost overruns in CPIF contracts requires rigorous government oversight, including detailed cost tracking, regular audits, and proactive negotiation of incentive targets. The government's strategy likely involved establishing realistic baseline costs and performance goals, with mechanisms to adjust incentives based on actual performance. However, the total award of $14.2M over nearly six years suggests a need for continuous monitoring to ensure taxpayer funds were used efficiently and effectively.
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: 1100 NEW JERSEY AVE , S E, WASHINGTON, VA, 10
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2003-03-29
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-03-11
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