Navy Awards $22.8M for 90 Azimuthing Stern Drive Tugs to Pacific Maritime Group Inc
Contract Overview
Contract Amount: $22,849,436 ($22.8M)
Contractor: Pacific Maritime Group Inc
Awarding Agency: Department of Defense
Start Date: 2010-10-08
End Date: 2012-06-01
Contract Duration: 602 days
Daily Burn Rate: $38.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 90' AZIMUTHING STERN DRIVE TUGS (YT)
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98421
Plain-Language Summary
Department of Defense obligated $22.8 million to PACIFIC MARITIME GROUP INC for work described as: 90' AZIMUTHING STERN DRIVE TUGS (YT) Key points: 1. Contract awarded for specialized tugboats, indicating a need for advanced marine capabilities. 2. Pacific Maritime Group Inc. secured the contract, suggesting strong performance or competitive advantage. 3. The firm fixed price contract aims to control costs for the Department of the Navy. 4. Shipbuilding and Repairing sector sees significant investment, highlighting its strategic importance.
Value Assessment
Rating: good
The contract value of $22.8 million for 90 tugs appears reasonable given the specialized nature of azimuthing stern drive vessels. Benchmarking against similar complex marine construction projects would provide a more precise assessment.
Cost Per Unit: $253,882
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The number of bids received and the final negotiated price would further clarify the effectiveness of the price discovery process.
Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for these essential naval assets.
Public Impact
Enhances naval operational capabilities with specialized tugs. Supports shipbuilding industry and associated jobs. Ensures readiness for port operations and fleet support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise.
- Dependence on a single contractor for a large quantity of specialized vessels.
Positive Signals
- Clear contract type (firm fixed price) for cost control.
- Awarded through full and open competition.
- Addresses a specific and critical operational need.
Sector Analysis
The shipbuilding and repairing sector is capital-intensive and requires specialized expertise. Spending in this area is often driven by national security needs and fleet modernization programs. Benchmarks for similar vessel construction can vary widely based on complexity and size.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Analysis of subcontracting opportunities for small businesses would be necessary to assess their participation in this contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Contract clauses and performance monitoring will ensure adherence to specifications and delivery schedules, safeguarding taxpayer investment.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded through full and open competition.
- Firm fixed price contract type.
- Specialized vessel acquisition for critical naval support.
- Potential for long-term operational efficiency gains.
Tags
ship-building-and-repairing, department-of-defense, wa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to PACIFIC MARITIME GROUP INC. 90' AZIMUTHING STERN DRIVE TUGS (YT)
Who is the contractor on this award?
The obligated recipient is PACIFIC MARITIME GROUP 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 $22.8 million.
What is the period of performance?
Start: 2010-10-08. End: 2012-06-01.
What is the expected lifespan and operational efficiency of these azimuthing stern drive tugs compared to traditional tugs?
Azimuthing stern drive (ASD) tugs generally offer superior maneuverability, bollard pull, and fuel efficiency compared to traditional tractor tugs. Their ability to rotate propulsion units 360 degrees allows for precise control in confined spaces, reducing transit times and operational risks. This enhanced performance can lead to long-term cost savings in fuel consumption and operational effectiveness, justifying the initial investment.
What are the primary risks associated with the firm fixed price contract for these specialized tugs?
The primary risk with a firm fixed price contract for complex vessels like ASD tugs lies in potential cost overruns if unforeseen technical challenges or material cost escalations occur during construction. While the government's price is fixed, the contractor bears the risk of increased costs. This could lead to quality compromises if the contractor attempts to cut corners, or potential disputes if significant scope changes are required.
How effectively will these tugs contribute to the Navy's overall mission readiness and operational flexibility?
These 90 azimuthing stern drive tugs are expected to significantly enhance the Navy's mission readiness by providing advanced capabilities for ship escort, docking, and maneuvering in various port and fleet environments. Their superior maneuverability and power will improve operational flexibility, enabling safer and more efficient fleet movements, particularly in congested or challenging waterways. This investment directly supports the Navy's ability to project power and maintain global presence.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 997 G ST, CHULA VISTA, CA, 52
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $22,849,436
Exercised Options: $22,849,436
Current Obligation: $22,849,436
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS07F5721R
IDV Type: FSS
Timeline
Start Date: 2010-10-08
Current End Date: 2012-06-01
Potential End Date: 2012-06-01 00:00:00
Last Modified: 2012-01-10
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