Navy awards $10.5M contract for 34 Dauntless Class Boats to SeaArk Marine, Inc

Contract Overview

Contract Amount: $10,495,941 ($10.5M)

Contractor: Seaark Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-16

End Date: 2010-02-02

Contract Duration: 1,174 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 34FT DAUNTLESS CLASS BOAT - KUWAIT CASE

Place of Performance

Location: MONTICELLO, DREW County, ARKANSAS, 71655

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SEAARK MARINE, INC. for work described as: 34FT DAUNTLESS CLASS BOAT - KUWAIT CASE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $10.5 million for 34 vessels indicates a per-unit cost that warrants further benchmarking. 3. Fixed-price contract type may limit cost overruns but could also reduce contractor incentive for efficiency. 4. The award to SeaArk Marine, Inc. represents a significant investment in naval shipbuilding capabilities. 5. The duration of the contract (over 3 years) suggests a substantial production and delivery timeline. 6. The 'AR' award type code might indicate a specific contracting preference or set-aside, requiring further investigation.

Value Assessment

Rating: fair

The total contract value of $10.5 million for 34 boats averages to approximately $308,823 per vessel. Benchmarking this against similar naval vessel procurements would be crucial to assess value for money. Without specific details on the vessel's specifications and capabilities, a definitive value assessment is challenging. However, the fixed-price nature of the contract provides some cost certainty for the government.

Cost Per Unit: Approximately $308,823 per vessel. This figure requires comparison with market rates for similar specialized marine craft.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specialized requirement. A higher number of bidders would typically lead to more aggressive pricing and potentially better value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the Kuwaiti naval forces, who will receive 34 specialized patrol boats. The contract supports the delivery of critical maritime security and patrol capabilities. The geographic impact is primarily on the contractor's facilities in Arkansas, where the boats will be built. The contract has implications for the shipbuilding workforce, particularly in Arkansas, requiring skilled labor for construction and assembly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'AR' award type code requires clarification to understand if it represents a specific preference or set-aside that might limit competition.
The specific capabilities and technical specifications of the 'Dauntless Class Boat' are not detailed, making it difficult to fully assess the value proposition.
The number of bidders (3) is moderate; a deeper analysis could explore why more potential competitors did not participate.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential suppliers could bid.
The firm fixed-price contract type provides cost predictability for the government.
The contract is for a specific, defined product (34 Dauntless Class Boats), indicating a clear requirement.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the shipbuilding and maritime defense sector. The market for specialized patrol boats is competitive, with several domestic and international manufacturers capable of producing such vessels. The value of this contract, while significant for the contractor, represents a small fraction of overall Department of Defense shipbuilding and procurement spending.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary award went to SeaArk Marine, Inc., which may or may not be classified as a small business itself. Further investigation into SeaArk's size status and subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm fixed-price nature of the contract simplifies some aspects of financial oversight, focusing on delivery milestones and quality control. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Procurement
Small Boat Construction
Foreign Military Sales (if applicable)
Maritime Security Equipment

Risk Flags

Potential ambiguity in award type code 'AR'.
Lack of detailed technical specifications for vessels.
Moderate number of bidders (3) warrants further competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SEAARK MARINE, INC.. 34FT DAUNTLESS CLASS BOAT - KUWAIT CASE

Who is the contractor on this award?

The obligated recipient is SEAARK MARINE, 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 $10.5 million.

What is the period of performance?

Start: 2006-11-16. End: 2010-02-02.

What are the specific technical capabilities and intended operational roles of the 34 Dauntless Class Boats awarded under this contract?

The provided data does not detail the specific technical capabilities or intended operational roles of the 34 Dauntless Class Boats. Typically, such vessels are designed for patrol, interdiction, and coastal security missions. The 'Dauntless Class' designation suggests a specific design lineage, likely optimized for speed, maneuverability, and potentially armament, depending on the mission profile. Further information from the Department of the Navy or SeaArk Marine would be required to ascertain precise specifications, such as length, beam, draft, speed, range, crew complement, and any installed systems (e.g., navigation, communication, weapons).

How does the per-unit cost of approximately $308,823 for these boats compare to similar naval craft procured by the US Navy or allied nations?

Benchmarking the per-unit cost of approximately $308,823 requires comparing it to similar specialized patrol or interdiction craft procured by the US Navy or allied nations. Factors such as vessel size, speed, materials, propulsion systems, electronics, and mission equipment significantly influence cost. For instance, smaller, less equipped patrol boats might cost under $100,000, while larger, more heavily armed or technologically advanced vessels could exceed several million dollars. Without detailed specifications for the Dauntless Class boats, a precise comparison is difficult. However, this price point suggests a mid-sized, moderately equipped vessel suitable for coastal operations.

What is the significance of the 'AR' award type code associated with this contract?

The 'AR' award type code in federal procurement typically signifies 'Awarded to a small business under section 8(a) of the Small Business Act.' However, the data indicates this contract was awarded under 'FULL AND OPEN COMPETITION' and SeaArk Marine, Inc. is the contractor. This presents a potential discrepancy or requires further clarification. It's possible 'AR' has a different meaning within the Department of the Navy's specific coding system, or it might relate to a specific aspect of the contract not immediately apparent. Further investigation into the specific meaning of 'AR' within the context of this award is warranted to understand any potential implications for competition or small business participation.

What is SeaArk Marine, Inc.'s track record in delivering similar naval or government contracts, particularly for patrol or specialized vessels?

SeaArk Marine, Inc. has a history of building aluminum commercial and military vessels. Their portfolio includes patrol boats, workboats, and other specialized craft for various government agencies and international clients. While specific details on past performance for contracts of this exact size and scope (34 units) are not provided in the summary data, their established presence in the marine manufacturing industry suggests experience relevant to this award. A comprehensive review of their contract history, including past performance evaluations and any reported issues, would provide a clearer picture of their reliability and capability.

What are the potential risks associated with a firm fixed-price contract for boat building, and how might they be mitigated?

A firm fixed-price (FFP) contract, like the one awarded here, shifts most of the risk to the contractor. The primary risk for the government is that the contractor may cut corners on quality or use lower-cost materials to maximize profit if cost pressures arise, potentially impacting the vessel's longevity or performance. Conversely, the contractor bears the risk of cost overruns due to unforeseen issues in labor, materials, or production. Mitigation strategies for the government include robust quality assurance and inspection protocols throughout the manufacturing process, clear technical specifications, and performance-based milestones. For the contractor, effective project management, accurate cost estimation, and strong supplier relationships are key to mitigating their risks.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: MC Clendon Resources Inc (UEI: 107280166)

Address: 404 N GABBERT ST, MONTICELLO, AR, 04

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,495,941

Exercised Options: $10,495,941

Current Obligation: $10,495,941

Parent Contract

Parent Award PIID: GS07F0012J

IDV Type: FSS

Timeline