Navy awards $4.4M contract for USS Arizona platform recovery, highlighting critical historical preservation efforts

Contract Overview

Contract Amount: $4,405,381 ($4.4M)

Contractor: Smit Salvage Americas, LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-10

End Date: 2027-05-13

Contract Duration: 702 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: USS ARIZONA PLATFORM RECOVERY

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $4.4 million to SMIT SALVAGE AMERICAS, LLC for work described as: USS ARIZONA PLATFORM RECOVERY Key points: 1. Contract focuses on specialized salvage and recovery, indicating a need for unique expertise. 2. The award value suggests a project of significant historical and symbolic importance. 3. Competition dynamics will be key to ensuring cost-effectiveness for this specialized service. 4. Performance risk is moderate, given the complexity of historical artifact recovery. 5. This contract aligns with broader Department of Defense efforts in historical site management and preservation. 6. The duration of the contract suggests a phased approach to the recovery and preservation process.

Value Assessment

Rating: good

The contract value of $4.4 million for platform recovery appears reasonable given the specialized nature of the work. Benchmarking against similar salvage operations for historical assets is challenging due to the unique context of the USS Arizona. However, the cost-plus award fee structure allows for flexibility while incentivizing performance, suggesting a focus on achieving project goals effectively. The absence of extensive raw dollar comparisons necessitates a qualitative assessment of value, which appears positive due to the mission's significance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and encourage the selection of the most capable provider for this specialized task. The number of bidders is not specified, but the open competition suggests a robust market response for services related to maritime salvage and historical preservation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more efficient use of funds and better service quality.

Public Impact

The primary beneficiaries are historical preservation organizations and the public, who will gain access to recovered artifacts and information. Services delivered include specialized salvage, recovery, and potentially preservation of platform components. The geographic impact is primarily focused on the location of the USS Arizona, with potential broader implications for maritime heritage sites. Workforce implications include the need for highly skilled salvage operators, maritime historians, and preservation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen complexities in salvage operations impacting cost and schedule.
Ensuring long-term preservation of recovered artifacts requires specialized handling and storage.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
Cost-plus award fee structure incentivizes contractor performance and goal achievement.
Focus on a historically significant asset underscores a commitment to national heritage.

Sector Analysis

This contract falls within the maritime services and specialized salvage sector, which is characterized by high barriers to entry due to the need for specialized equipment, expertise, and regulatory compliance. The market size for such niche salvage operations is relatively small, often driven by specific project needs rather than ongoing demand. This contract represents a unique application of salvage capabilities for historical preservation, distinct from typical commercial or military salvage.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. Given the specialized nature of platform recovery, it is possible that larger, experienced firms dominate this niche. Further analysis would be needed to determine if small businesses have opportunities to participate in subcontracting roles.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy, with specific project managers ensuring adherence to contract terms, performance standards, and budget. The cost-plus award fee structure implies performance monitoring and evaluation. Transparency regarding the recovery process and findings will be crucial for public accountability, especially given the historical significance of the USS Arizona.

Related Government Programs

Naval History and Heritage Command
Maritime Heritage Preservation Programs
Defense Contract Audit Agency (DCAA) oversight
National Park Service historical site management

Risk Flags

Potential for environmental impact during salvage operations.
Risk of damage to historical artifacts during recovery.
Complexity of underwater operations and unforeseen challenges.
Long-term preservation and curation of recovered materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.4 million to SMIT SALVAGE AMERICAS, LLC. USS ARIZONA PLATFORM RECOVERY

Who is the contractor on this award?

The obligated recipient is SMIT SALVAGE AMERICAS, 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 $4.4 million.

What is the period of performance?

Start: 2025-06-10. End: 2027-05-13.

What is the track record of SMIT SALVAGE AMERICAS, LLC in similar historical recovery projects?

SMIT SALVAGE AMERICAS, LLC is a well-established entity in the global maritime salvage industry, known for handling complex and large-scale operations. While specific details on their involvement in historical artifact recovery projects comparable to the USS Arizona platform are not immediately available in this context, their general expertise in salvage, wreck removal, and environmental response suggests a capability to undertake such a mission. Their portfolio typically includes challenging offshore recovery operations, which require advanced engineering, logistical planning, and risk management. Further investigation into their project history would be necessary to confirm direct experience with culturally significant assets.

How does the $4.4 million award compare to the estimated costs of similar historical salvage operations?

Direct comparisons for historical salvage operations of this magnitude are difficult due to the unique nature of each project and the specific assets involved. The $4.4 million award for the USS Arizona platform recovery is likely influenced by the specialized equipment, expertise, and meticulous planning required for handling historically sensitive materials. Unlike routine commercial salvage, historical recovery demands a higher degree of care, documentation, and potentially specialized preservation techniques post-recovery. Without specific benchmarks for similar high-profile historical salvage efforts, it's challenging to definitively state if this figure is high or low, but it reflects the specialized and sensitive nature of the task.

What are the primary risks associated with this platform recovery contract?

The primary risks associated with this platform recovery contract include technical challenges inherent in salvage operations, such as unpredictable underwater conditions, structural integrity of the target, and the potential for environmental hazards. Given the historical significance of the USS Arizona, there's also a risk of damaging artifacts during recovery, requiring extremely careful handling and specialized techniques. Schedule delays are a common risk in complex salvage projects due to weather, unforeseen obstacles, or logistical issues. Furthermore, ensuring the long-term preservation and proper curation of recovered items presents an ongoing challenge beyond the initial recovery phase.

What is the expected effectiveness of this contract in achieving its stated goals?

The effectiveness of this contract will be measured by the successful and safe recovery of the USS Arizona platform components, adherence to preservation standards, and the timely completion of the project within the allocated budget. The cost-plus award fee structure is designed to incentivize the contractor to meet or exceed performance objectives, which should contribute to effectiveness. The Department of the Navy's oversight and the specialized expertise of SMIT SALVAGE AMERICAS, LLC are positive indicators for achieving the project's goals. The ultimate effectiveness will also depend on the quality of the recovered materials and their subsequent preservation and accessibility for historical study.

What are the historical spending patterns for similar maritime salvage or historical preservation contracts by the Department of Defense?

Historical spending patterns for maritime salvage and historical preservation contracts by the Department of Defense can vary significantly based on specific needs and initiatives. While the DoD engages in numerous salvage operations for operational readiness and wreck removal, contracts specifically for the recovery of historical assets like the USS Arizona platform are less frequent and often project-specific. Spending in this area is typically driven by unique events or long-term heritage management plans. Without access to a comprehensive database of all DoD salvage and preservation contracts, it's difficult to establish a precise historical spending trend. However, such projects are generally high-priority, specialized endeavors that receive dedicated funding when deemed necessary.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: SALVAGE SERVICES › SALVAGE OF MARINE VESSELS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002417R4310

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koninklijke Boskalis Westminster N.V.

Address: 15402 VANTAGE PKWY E STE 316, HOUSTON, TX, 77032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,845,919

Exercised Options: $4,845,919

Current Obligation: $4,405,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D4308

IDV Type: IDC

Timeline