Navy awards $31.5M for coastal security craft to Maritime Security Strategies, LLC

Contract Overview

Contract Amount: $31,479,076 ($31.5M)

Contractor: Maritime Security Strategies, LLC

Awarding Agency: Department of Defense

Start Date: 2011-01-14

End Date: 2013-06-29

Contract Duration: 897 days

Daily Burn Rate: $35.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LEBANON COASTAL SECURITY CRAFT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33611

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to MARITIME SECURITY STRATEGIES, LLC for work described as: LEBANON COASTAL SECURITY CRAFT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm fixed-price contract type suggests cost certainty for the government. 3. Duration of 897 days indicates a significant project timeline. 4. The contract falls under shipbuilding and repair, a critical defense sector. 5. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $31.5 million for coastal security craft appears to be within a reasonable range for specialized maritime assets, though direct comparisons are difficult without detailed specifications. The firm fixed-price structure provides budget predictability. However, the lack of competition means there's no direct benchmark to assess if the price achieved represents the best possible value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Maritime Security Strategies, LLC, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and fosters innovation. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently reduce the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher overall expenditure for similar goods or services.

Public Impact

The primary beneficiary is the U.S. Department of the Navy, which will receive coastal security craft. These craft are intended to enhance maritime security operations. The geographic impact is likely focused on naval bases or operational areas requiring coastal patrol. The contract supports specialized shipbuilding and repair workforce capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for money.
Sole-source awards can limit opportunities for emerging or smaller businesses in the sector.
The long duration could introduce risks related to schedule delays or cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The award supports a specific, likely critical, national security capability.
The contractor is being awarded a contract, indicating some level of trust or prior relationship with the agency.

Sector Analysis

The shipbuilding and repair sector is a vital component of the defense industrial base, characterized by high capital investment, specialized labor, and long production cycles. This contract for coastal security craft fits within the broader category of naval vessel construction and modification. Spending in this sector is often driven by strategic defense needs and technological advancements, with significant government investment typically seen in areas like naval shipbuilding.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means opportunities for small business participation are likely limited to direct subcontracting by the prime contractor, if they choose to engage them, rather than a mandated set-aside.

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 provides a degree of accountability regarding cost. Transparency is limited by the sole-source award, but contract performance would be monitored through standard government reporting and inspection processes. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Construction
Maritime Security Equipment
Coastal Patrol Craft Procurement
Defense Shipbuilding Contracts

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed performance metrics in provided data.
Contractor's past performance data not available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to MARITIME SECURITY STRATEGIES, LLC. LEBANON COASTAL SECURITY CRAFT

Who is the contractor on this award?

The obligated recipient is MARITIME SECURITY STRATEGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2011-01-14. End: 2013-06-29.

What is the specific capability or mission requirement driving the need for these coastal security craft?

The provided data does not specify the exact mission requirements for the coastal security craft. However, the term 'coastal security' implies a need for vessels designed for patrol, surveillance, interdiction, and potentially force protection within littoral zones and near shorelines. These craft are likely intended to supplement larger naval assets or provide dedicated capabilities for specific operational environments, such as protecting naval bases, critical infrastructure, or supporting special operations forces in coastal areas. Understanding the precise operational context would allow for a more accurate assessment of the value and necessity of this procurement.

What is the track record of Maritime Security Strategies, LLC in delivering similar coastal security craft or naval vessels?

The provided data indicates that Maritime Security Strategies, LLC was awarded this contract. However, it does not offer details on their past performance, specific experience with coastal security craft, or their track record in shipbuilding and repair. A comprehensive assessment would require reviewing past contract performance evaluations (e.g., CPARS), previous awards, and any publicly available information on their project history. Without this, it's difficult to gauge their capability and reliability for this specific procurement, especially given the sole-source nature of the award.

How does the $31.5 million cost compare to similar coastal security craft procured by the government or international allies?

Directly comparing the $31.5 million cost without detailed specifications of the security craft is challenging. The price would depend heavily on factors such as size, speed, armament, sensor suites, endurance, and technological sophistication. To benchmark this value, one would need to identify comparable contracts for vessels with similar capabilities. This could involve searching federal procurement databases (like FPDS or SAM.gov) for similar awards, analyzing international defense sales data, or consulting industry reports. The lack of competition in this sole-source award makes a precise value-for-money assessment against market rates more difficult.

What are the key performance metrics or milestones associated with this contract, and how will they be measured?

The provided data does not detail the key performance metrics or milestones for this contract. Typically, for shipbuilding contracts, milestones would include design reviews, hull construction completion, systems integration, sea trials, and final delivery. Performance metrics might relate to speed, maneuverability, system reliability, and adherence to specifications. The Department of the Navy would establish these through the contract's statement of work and delivery schedule. Monitoring these would be crucial for ensuring the contractor meets the government's requirements within the specified timeframe and budget.

What is the historical spending trend for coastal security craft or similar maritime assets by the Department of the Navy?

The provided data focuses on a single contract award and does not offer historical spending trends for coastal security craft or similar maritime assets by the Department of the Navy. To analyze historical spending, one would need to examine procurement data over several fiscal years, identifying all contracts related to patrol boats, security vessels, and related services. This analysis would reveal patterns in contract values, award types (competed vs. sole-source), and the number of contractors involved, providing context for the current $31.5 million award and identifying potential shifts in procurement strategies or market dynamics.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5251 W TYSON AVE, TAMPA, FL, 90

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $33,514,214

Exercised Options: $33,514,214

Current Obligation: $31,479,076

Contract Characteristics

Cost or Pricing Data: YES

Timeline