DoD Awards $24.4M Contract for RTSC Smalls to Modutech Marine, Inc
Contract Overview
Contract Amount: $24,367,917 ($24.4M)
Contractor: Modutech Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-28
End Date: 2015-12-01
Contract Duration: 1,372 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THREE (3) RTSC SMALLS WITH AN OPTION FOR A FOURTH.
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98422
Plain-Language Summary
Department of Defense obligated $24.4 million to MODUTECH MARINE, INC. for work described as: THREE (3) RTSC SMALLS WITH AN OPTION FOR A FOURTH. Key points: 1. Contract awarded to Modutech Marine, Inc. for RTSC Smalls. 2. Total value of $24.4 million across three contracts with an option for a fourth. 3. Full and open competition was utilized. 4. The sector is Boat Building within the Department of Defense.
Value Assessment
Rating: good
The contract value of $24.4 million for three RTSC Smalls appears reasonable given the scope of boat building services. Benchmarking against similar DoD contracts for specialized vessel construction would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures continued operational readiness for naval assets requiring specialized small vessels. Supports the shipbuilding industry and associated supply chains. Provides critical infrastructure for defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fourth option is exercised without re-evaluation.
- Dependence on a single contractor for specialized boat building services.
Positive Signals
- Successful execution of three contract phases.
- Utilized full and open competition, promoting fairness.
Sector Analysis
This contract falls within the Boat Building sector, a specialized area of defense manufacturing. Spending benchmarks for similar naval vessel construction contracts are typically high due to material costs, labor, and technical requirements.
Small Business Impact
While the contract is with Modutech Marine, Inc., the data does not specify if they are a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed price contract type provides some cost control, but monitoring performance and option exercise is crucial.
Related Government Programs
- Boat Building
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded under full and open competition.
- Firm Fixed Price contract type.
- Option for a fourth RTSC Small exists.
- Contract duration of over 1300 days.
- Specific vessel details not provided.
- Small business status of contractor not specified.
Tags
boat-building, department-of-defense, wa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.4 million to MODUTECH MARINE, INC.. THREE (3) RTSC SMALLS WITH AN OPTION FOR A FOURTH.
Who is the contractor on this award?
The obligated recipient is MODUTECH 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 $24.4 million.
What is the period of performance?
Start: 2012-02-28. End: 2015-12-01.
What is the specific type and size of the RTSC Smalls being built, and how does this impact the overall cost-effectiveness?
The specific type and size of the RTSC Smalls are not detailed in the provided data. Understanding these specifications is crucial for a thorough cost-effectiveness analysis. Different vessel types and sizes have vastly different material, labor, and engineering requirements, directly influencing the contract's value and whether the $24.4 million represents a fair price for the delivered capability.
What are the key performance metrics and potential risks associated with Modutech Marine, Inc.'s ability to deliver on this contract?
Key performance metrics would likely include on-time delivery, adherence to technical specifications, and vessel seaworthiness. Potential risks could involve production delays, quality control issues, or unforeseen cost increases in materials or labor. The firm fixed price nature of the contract shifts some cost risk to the contractor, but performance failures could still impact naval readiness.
How does the exercise of the fourth option impact the long-term value and strategic sourcing for the Department of the Navy?
Exercising the fourth option could provide continuity and potentially better pricing if negotiated effectively. However, it also increases reliance on Modutech Marine, Inc. for this specific capability. The Navy should assess if this long-term reliance is strategically sound or if diversifying suppliers for future needs would be more beneficial to ensure competitive pricing and mitigate supply chain 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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2218 MARINE VIEW DR, TACOMA, WA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $31,893,225
Exercised Options: $24,367,917
Current Obligation: $24,367,917
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS07F5488P
IDV Type: FSS
Timeline
Start Date: 2012-02-28
Current End Date: 2015-12-01
Potential End Date: 2015-12-01 00:00:00
Last Modified: 2014-10-27
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