DoD Awards $18.17M for Hull Cleaning to Seaward Marine Services, LLC
Contract Overview
Contract Amount: $18,167,027 ($18.2M)
Contractor: Seaward Marine Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-24
End Date: 2024-11-30
Contract Duration: 403 days
Daily Burn Rate: $45.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: HULL CLEANING
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to SEAWARD MARINE SERVICES, LLC for work described as: HULL CLEANING Key points: 1. Significant contract value for hull cleaning services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract introduces inflation risk. 4. Services fall under Ship Building and Repairing sector, with a benchmark of $4.5M.
Value Assessment
Rating: fair
The contract's fixed price with economic price adjustment introduces uncertainty in final cost. Benchmarking against similar contracts is difficult without more granular data, but the stated benchmark of $4.5M suggests this award may be high.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for an $18.17M contract could lead to suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Naval readiness may be impacted by the availability and quality of hull cleaning services. Taxpayers may be overpaying due to the absence of competitive bidding. Economic price adjustment clauses could lead to unexpected cost increases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Economic price adjustment
- Lack of competition
Positive Signals
- Clear service requirement
- Defined contract period
Sector Analysis
This contract falls within the Ship Building and Repairing sector. The provided benchmark of $4.5M suggests this award is significantly higher than typical spending in this category, warranting further investigation.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to assess small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and adequate performance. Accountability for the justification of non-competition is crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Economic price adjustment introduces cost uncertainty.
- Award significantly exceeds sector benchmark.
- Potential for overpayment due to non-competitive nature.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to SEAWARD MARINE SERVICES, LLC. HULL CLEANING
Who is the contractor on this award?
The obligated recipient is SEAWARD MARINE SERVICES, 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 $18.2 million.
What is the period of performance?
Start: 2023-10-24. End: 2024-11-30.
What is the justification for awarding this hull cleaning contract on a sole-source basis, and what steps were taken to ensure the best possible price was obtained?
The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must demonstrate why competition was not feasible or advantageous. Without this justification, it's difficult to assess if the government received fair and reasonable pricing. Steps to ensure best price might include market research, historical pricing analysis, or negotiation strategies, even in a sole-source scenario.
How does the economic price adjustment clause in this contract mitigate or exacerbate inflation risks for the Department of Defense?
An economic price adjustment (EPA) clause allows for contract price changes based on fluctuations in specific economic factors, such as labor or material costs. While EPA can protect contractors from unforeseen cost increases and ensure contract viability, it also transfers some inflation risk to the government. The specific index and caps within the EPA will determine the extent of this risk transfer and potential impact on the total contract cost.
What is the expected impact of this $18.17M hull cleaning contract on the operational readiness and maintenance schedules of the specified Navy assets?
The timely and effective execution of this hull cleaning contract is directly linked to the operational readiness of naval vessels. Proper hull maintenance prevents biofouling, reduces drag, and improves fuel efficiency, all critical for mission capability. Delays or substandard service could negatively impact deployment schedules and overall fleet readiness, requiring careful monitoring of performance metrics.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002421R4314
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Seaward Marine Services, Inc.
Address: 5409 BEAMON RD, NORFOLK, VA, 23513
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,201,396
Exercised Options: $20,201,396
Current Obligation: $18,167,027
Actual Outlays: $3,437,759
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002423D4311
IDV Type: IDC
Timeline
Start Date: 2023-10-24
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2025-05-01
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