Navy awards $19.5M for 29 coastal warfare patrol boats to SeaArk Marine

Contract Overview

Contract Amount: $19,501,976 ($19.5M)

Contractor: Seaark Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-15

End Date: 2010-05-05

Contract Duration: 750 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 29 NAVAL COASTAL WARFARE PATROL BOATS

Place of Performance

Location: MONTICELLO, DREW County, ARKANSAS, 71655

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to SEAARK MARINE, INC. for work described as: 29 NAVAL COASTAL WARFARE PATROL BOATS Key points: 1. Value for money appears reasonable given the specialized nature of naval patrol boats. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of 750 days indicates a significant production timeline. 4. The fixed-price contract type shifts risk to the contractor. 5. This contract falls within the broader category of shipbuilding and boat manufacturing. 6. The award amount is a key indicator of the overall investment in this capability.

Value Assessment

Rating: good

The award of $19.5 million for 29 patrol boats equates to approximately $672,413 per vessel. Benchmarking this against similar specialized naval craft requires detailed market analysis, but it appears within a plausible range for custom-built, defense-grade vessels. The firm fixed-price structure suggests that SeaArk Marine assumed the primary cost risk, which can be favorable for the government if costs are managed effectively by the contractor. Without specific comparable contracts for identical vessels, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: Approximately $672,413 per patrol boat.

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 data shows three bids were received, suggesting a moderate level of competition for this specialized requirement. While three bidders is not a large number, it demonstrates that multiple companies were interested and capable of meeting the Navy's needs. This level of competition generally helps in achieving fair market pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Navy's coastal warfare units, receiving enhanced operational capabilities. The services delivered include the construction and delivery of 29 specialized patrol boats. The geographic impact is primarily centered around the contractor's facility in Arkansas, with the ultimate operational deployment of the boats being global for naval operations. Workforce implications include direct employment at SeaArk Marine and its supply chain partners in boat building and related manufacturing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in specialized shipbuilding.
Risk of cost overruns if unforeseen technical challenges arise, despite fixed-price contract.
Dependence on a single contractor for the full quantity of boats.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust initial vetting of potential suppliers.
Award to an established boat builder like SeaArk Marine indicates experience in this domain.

Sector Analysis

This contract falls within the broader shipbuilding and boat manufacturing sector, a critical component of the defense industrial base. The market for specialized naval vessels is often characterized by high barriers to entry due to technical expertise, regulatory compliance, and capital investment requirements. Comparable spending benchmarks would involve analyzing other contracts for patrol boats, cutters, and similar maritime platforms awarded by various government agencies. The defense sector's demand for such assets is driven by national security needs and evolving operational requirements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting goal explicitly mentioned. SeaArk Marine, Inc. is a significant player in the boat building industry, and while they may utilize small businesses in their supply chain, the primary award is not directed towards the small business sector. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring SeaArk Marine to deliver the specified vessels within the agreed-upon cost and schedule. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Vessel Construction
Patrol Boat Procurement
Defense Shipbuilding Contracts
Coastal Warfare Assets
Maritime Security Vessels

Risk Flags

Potential for schedule slippage
Risk of contractor cost overruns
Long-term sustainment challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to SEAARK MARINE, INC.. 29 NAVAL COASTAL WARFARE PATROL BOATS

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 $19.5 million.

What is the period of performance?

Start: 2008-04-15. End: 2010-05-05.

What is SeaArk Marine's track record with similar naval contracts?

SeaArk Marine, Inc. has a history of building vessels for various government agencies, including the U.S. Navy and Coast Guard. Their expertise lies in constructing aluminum-hulled vessels, often for patrol, law enforcement, and special operations roles. Reviewing their past performance on contracts for similar patrol or specialized craft would provide insight into their ability to meet quality, schedule, and cost requirements. Specific details on past delivery performance, defect rates, and customer satisfaction would be crucial for a comprehensive assessment. Their experience with defense contracts suggests familiarity with stringent military specifications and production standards.

How does the per-unit cost compare to other naval patrol boats?

The per-unit cost of approximately $672,413 for these 29 coastal warfare patrol boats needs to be benchmarked against similar vessels. Factors influencing cost include size, speed, armament, sensor suites, and specialized mission equipment. For instance, larger, more heavily armed, or technologically advanced patrol craft would naturally command higher prices. Contracts for smaller, less specialized vessels would be significantly cheaper. Without detailed specifications of these 29 boats and comparable contract data for vessels of identical or very similar capabilities, a precise comparison is difficult. However, for a purpose-built, defense-grade patrol boat, this figure appears within a reasonable range, especially considering the full and open competition that likely helped moderate pricing.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential production delays, as shipbuilding is a complex process susceptible to supply chain disruptions or unforeseen technical challenges. Despite the firm fixed-price nature, there's a residual risk of cost overruns for the contractor, which could lead to quality compromises if not managed diligently. Another risk is the long-term sustainment and maintenance of these specialized vessels, which may require specific expertise and parts. Furthermore, the operational effectiveness and survivability of the patrol boats in their intended environment are critical performance risks that depend on design, construction quality, and integration of systems.

How effective are coastal warfare patrol boats in current naval operations?

Coastal warfare patrol boats are highly effective in specific operational environments, particularly in littoral zones, near-shore areas, and for force protection missions. They provide a cost-effective platform for surveillance, interdiction, escort duties, and supporting special operations. Their smaller size and maneuverability allow them to operate in areas inaccessible to larger warships. Their effectiveness is enhanced by modern sensor technology and communication systems. However, they are generally not designed for sustained open-ocean operations or high-intensity combat against peer adversaries, where larger, more heavily armed vessels are required. Their role is complementary to larger fleet assets.

What has been the historical spending trend for similar naval patrol boats?

Historical spending on naval patrol boats has varied significantly based on geopolitical conditions, technological advancements, and specific naval modernization programs. During periods of increased maritime security concerns or asymmetric warfare threats, spending on patrol craft often rises. Conversely, shifts towards major fleet modernization or different strategic priorities can lead to fluctuations. Analyzing past Navy and Coast Guard procurement data for patrol vessels over the last decade or two would reveal trends in contract values, quantities procured, and the types of platforms favored. This specific award of $19.5 million for 29 boats represents a moderate investment within the broader context of naval shipbuilding budgets.

What is the significance of the 'Boat Building' Product Service Code (PSC)?

The Product Service Code (PSC) '336612' specifically designates 'Boat Building' as the primary industry classification for this contract. This code is crucial for federal agencies and analysts to categorize and track spending related to the construction of boats and small vessels. It helps in understanding the market landscape, identifying potential contractors, and analyzing spending patterns within this specific manufacturing sector. Using this PSC allows for more precise benchmarking against other similar procurements and provides insights into the types of companies that are active suppliers to the government in this domain.

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: $19,535,901

Exercised Options: $19,535,901

Current Obligation: $19,501,976

Parent Contract

Parent Award PIID: GS07F0012J

IDV Type: FSS

Timeline