DoD's $35.6M Coastal Patrol Craft Contract Awarded to Swiftships Shipbuilders L.L.C

Contract Overview

Contract Amount: $35,557,215 ($35.6M)

Contractor: Swiftships Shipbuilders, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2008-11-06

End Date: 2020-01-24

Contract Duration: 4,096 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EN 28M COASTAL PATROL CRAFT

Place of Performance

Location: MORGAN CITY, SAINT MARY County, LOUISIANA, 70380

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to SWIFTSHIPS SHIPBUILDERS, L.L.C. for work described as: EN 28M COASTAL PATROL CRAFT Key points: 1. The contract for coastal patrol craft represents a significant investment in naval capabilities. 2. Competition for this contract was limited, potentially impacting price discovery. 3. The firm fixed-price structure aims to control costs, but the lack of competition is a risk. 4. Spending in the boat building sector can vary widely based on defense needs and technological advancements.

Value Assessment

Rating: fair

The contract value of $35.6 million for 1 coastal patrol craft appears high when compared to similar, albeit potentially different, naval vessel procurements. Benchmarking is difficult without more detailed specifications and comparable contract data.

Cost Per Unit: $35,557,215.49

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition award. This lack of competitive bidding may have led to a higher price than if multiple vendors had vied for the contract.

Taxpayer Impact: The absence of robust competition likely resulted in taxpayers paying more than necessary for this coastal patrol craft.

Public Impact

Enhances U.S. Navy's coastal patrol and interdiction capabilities. Supports domestic shipbuilding industry and associated jobs. Potential for follow-on contracts or upgrades could extend taxpayer investment. Deployment of these craft impacts maritime security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
High per-unit cost
Long contract duration

Positive Signals

Firm fixed-price contract
Supports domestic industry

Sector Analysis

The Department of the Navy's spending on specialized vessels like coastal patrol craft is part of a broader defense budget. Benchmarks for such niche procurements are difficult to establish due to unique specifications and limited market size.

Small Business Impact

The contract was awarded to Swiftships Shipbuilders, L.L.C., a private company. Analysis of its small business status or subcontracting plans is not provided in the data, making it difficult to assess small business impact.

Oversight & Accountability

The definitive contract structure suggests a formal agreement, but the lack of competition raises questions about the effectiveness of oversight in ensuring the best value for taxpayer dollars. Further review of the procurement process is warranted.

Related Government Programs

Boat Building
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
High per-unit cost
Potential for cost overruns if justification for limited competition is weak
Long contract duration may not reflect current technological needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to SWIFTSHIPS SHIPBUILDERS, L.L.C.. EN 28M COASTAL PATROL CRAFT

Who is the contractor on this award?

The obligated recipient is SWIFTSHIPS SHIPBUILDERS, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2008-11-06. End: 2020-01-24.

What specific capabilities does this coastal patrol craft provide, and how do they justify the high per-unit cost?

The provided data lacks specific details on the craft's capabilities. A high per-unit cost could be justified by advanced technology, specialized mission requirements, or unique operational demands. However, without this information, it's difficult to assess value for money. Further documentation on the vessel's specifications and intended role is needed for a comprehensive analysis.

What were the reasons for limiting competition on this $35.6 million contract?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' This typically implies a sole-source justification, such as a unique capability only one vendor possesses, urgent need, or follow-on work to an existing system. Without the specific justification documented by the agency, it's impossible to definitively assess the risk associated with this limited competition.

How effective is the firm fixed-price contract in managing costs given the limited competition?

A firm fixed-price contract is generally effective in shifting cost risk to the contractor. However, when competition is limited or non-existent, the contractor has less incentive to offer the lowest possible price. The effectiveness here is therefore compromised, as the government may be paying a premium due to the lack of competitive pressure, despite the fixed-price structure.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002409R2210

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1105 LEVEE RD, MORGAN CITY, LA, 70380

Business Categories: Category Business, Limited Liability Corporation, Small Business

Financial Breakdown

Contract Ceiling: $35,557,215

Exercised Options: $35,557,215

Current Obligation: $35,557,215

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline