DoD's $30M LCAC SLEP Contract with Tecnico Corporation Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $30,041,959 ($30.0M)

Contractor: Tecnico Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-11

End Date: 2022-07-20

Contract Duration: 1,408 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LANDING CRAFT, AIR CUSHION (LCAC) SERVICE LIFE EXTENSION PROGRAM(SLEP)

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23455

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to TECNICO CORPORATION for work described as: LANDING CRAFT, AIR CUSHION (LCAC) SERVICE LIFE EXTENSION PROGRAM(SLEP) Key points: 1. The Department of the Navy awarded a $30M contract for Landing Craft, Air Cushion (LCAC) Service Life Extension Program (SLEP). 2. Tecnico Corporation secured the contract, indicating potential competition in the ship building and repair sector. 3. The contract was awarded under full and open competition, suggesting a robust price discovery process. 4. The firm fixed-price contract type aims to control costs for this critical defense asset. 5. The program focuses on extending the life of essential naval assets.

Value Assessment

Rating: good

The contract value of $30M for LCAC SLEP appears reasonable given the specialized nature of ship repair and life extension services. Benchmarking against similar complex defense platform upgrades would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to more competitive pricing and better value for the government. This method allows all eligible contractors to bid, fostering a competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and ensuring the government receives the best possible price for services rendered.

Public Impact

Ensures continued operational readiness of the Navy's LCAC fleet. Supports critical amphibious assault and troop/equipment transport capabilities. Extends the lifespan of a key military asset, potentially delaying costly replacements. Invests in specialized shipbuilding and repair infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise during SLEP.
Dependence on a single contractor (Tecnico Corporation) for this specific SLEP phase.
Risk of schedule delays impacting fleet readiness.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides cost certainty.
Focus on life extension is a cost-effective strategy compared to new procurement.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, specifically focusing on specialized maintenance and upgrades for naval vessels. Spending benchmarks in this niche area are highly dependent on the complexity of the upgrade and the specific platform.

Small Business Impact

The data indicates the prime contractor is Tecnico Corporation, and there is no explicit mention of small business participation in this award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for major procurement programs. The firm fixed-price nature of the contract provides a degree of financial oversight.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract Duration
Contract Type
Awarding Agency
Competition Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to TECNICO CORPORATION. LANDING CRAFT, AIR CUSHION (LCAC) SERVICE LIFE EXTENSION PROGRAM(SLEP)

Who is the contractor on this award?

The obligated recipient is TECNICO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2018-09-11. End: 2022-07-20.

What is the projected cost savings achieved by extending the service life of the LCACs through this SLEP program compared to procuring new vessels?

Quantifying the exact cost savings requires a detailed lifecycle cost analysis comparing the SLEP program against the acquisition cost of new LCACs, including operational and maintenance differences. However, service life extension programs are generally pursued because they are significantly more cost-effective than procuring entirely new platforms, deferring major capital expenditures and leveraging existing infrastructure.

What are the key technical risks associated with the LCAC SLEP, and how are they being mitigated by the contractor and the Navy?

Key technical risks often include unforeseen structural degradation, aging systems requiring extensive refurbishment, and integration challenges with updated components. Mitigation strategies typically involve thorough initial inspections, phased implementation of upgrades, robust testing protocols, and close collaboration between the contractor and Navy engineers to address issues as they arise during the program.

How effectively does the current LCAC SLEP program maintain or enhance the operational capabilities of the Navy's amphibious assault fleet?

The SLEP program is designed to restore and potentially enhance the operational capabilities of the LCACs to meet current and future Navy requirements. By addressing wear and tear and incorporating modernizations, the program aims to ensure the vessels remain effective for troop and equipment transport, maintaining the Navy's amphibious assault readiness.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002418R2400

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Maritime Holdings, LLC

Address: 831 INDUSTRIAL AVE, CHESAPEAKE, VA, 23324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,729,474

Exercised Options: $30,041,959

Current Obligation: $30,041,959

Actual Outlays: $18,567,411

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline