Navy Awards $18.6M for Ship Repair to Seaward Marine Services, LLC
Contract Overview
Contract Amount: $18,662,122 ($18.7M)
Contractor: Seaward Marine Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-01
End Date: 2025-12-31
Contract Duration: 425 days
Daily Burn Rate: $43.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: PACIFIC FLEET
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.7 million to SEAWARD MARINE SERVICES, LLC for work described as: PACIFIC FLEET Key points: 1. Significant contract value for ship repair services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Fixed-price with economic price adjustment contract introduces inflation risk. 4. Focus on naval shipbuilding and repair sector.
Value Assessment
Rating: questionable
The contract's fixed-price with economic price adjustment structure may lead to costs exceeding benchmarks if inflation is high. Without competitive bidding, it's difficult to assess if the $18.6 million price is optimal compared to market rates for similar ship repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The lack of competition could lead to higher expenditures than necessary, impacting the efficient use of taxpayer funds for naval readiness.
Public Impact
Ensures continued maintenance and operational readiness of naval vessels. Supports critical infrastructure for national defense. Potential for increased costs due to economic price adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Economic price adjustment clause
- Potential for cost overruns
Positive Signals
- Supports critical naval operations
- Ensures vessel readiness
Sector Analysis
This contract falls within the shipbuilding and repair sector, which is vital for maintaining the operational capacity of the U.S. Navy. Spending in this sector is often driven by defense needs and can be subject to fluctuations based on fleet size and maintenance requirements.
Small Business Impact
The contract was awarded to SEAWARD MARINE SERVICES, LLC. Further analysis is needed to determine if this entity qualifies as a small business and if subcontracting opportunities were provided.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's contracting officers are responsible for validating the necessity and cost-effectiveness of this award.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award may not represent best value.
- Economic price adjustment introduces cost uncertainty.
- Potential for cost overruns due to inflation.
- Lack of transparency in pricing due to no competition.
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 $18.7 million to SEAWARD MARINE SERVICES, LLC. PACIFIC FLEET
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 $18.7 million.
What is the period of performance?
Start: 2024-11-01. End: 2025-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. The contracting officer must conduct a thorough price analysis, potentially using historical data, commercial price lists, or independent government cost estimates, to ensure the price is fair and reasonable despite the absence of competition.
How will the economic price adjustment clause impact the final cost of the contract, and what is the potential risk to the taxpayer?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specific economic factors, such as labor or material costs. This introduces uncertainty, as the final cost could exceed the initial estimate if inflation is higher than anticipated, potentially leading to increased taxpayer burden.
What is the expected impact of this contract on the operational readiness of the Pacific Fleet?
This contract is expected to directly contribute to the operational readiness of the Pacific Fleet by ensuring that necessary ship repair and maintenance services are performed. Timely and effective repairs are critical for maintaining the seaworthiness and combat capability of naval vessels deployed in the Pacific theater.
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: $21,299,281
Exercised Options: $21,299,281
Current Obligation: $18,662,122
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002423D4311
IDV Type: IDC
Timeline
Start Date: 2024-11-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-11-21
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