Navy Awards $161M Ship Repair Contract to Seaward Marine Services, LLC
Contract Overview
Contract Amount: $16,101,185 ($16.1M)
Contractor: Seaward Marine Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-08
End Date: 2025-12-31
Contract Duration: 418 days
Daily Burn Rate: $38.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: ATLANTIC FLEET
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.1 million to SEAWARD MARINE SERVICES, LLC for work described as: ATLANTIC FLEET Key points: 1. Significant contract value of $161 million for ship repair services. 2. Sole-source award raises questions about competition and potential price discovery. 3. Fixed-price contract with economic price adjustment introduces cost escalation risk. 4. Focus on ship building and repair highlights critical defense infrastructure needs.
Value Assessment
Rating: questionable
The contract's fixed-price with economic price adjustment structure can lead to costs exceeding initial estimates, especially with fluctuating material and labor prices. Benchmarking against similar ship repair contracts is difficult without more detailed cost breakdowns.
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 a higher price than if multiple vendors had competed for the work.
Taxpayer Impact: The lack of competition for a large contract could mean taxpayers are not receiving the best possible value, potentially leading to overspending.
Public Impact
Ensures continued maintenance and operational readiness of naval vessels. Supports critical shipbuilding and repair infrastructure within the defense sector. Potential for increased costs due to economic price adjustment clauses. Limited transparency on the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Economic price adjustment
- Lack of competition
Positive Signals
- Ensures critical fleet readiness
- Supports established vendor
Sector Analysis
The Department of the Navy's spending on ship building and repair is substantial, reflecting the need to maintain a large and complex fleet. This contract falls within the broader defense industrial base, where specialized repair services are essential for operational readiness.
Small Business Impact
The contract was awarded to Seaward Marine Services, LLC, a specific company. There is no indication in the provided data whether this award involved or benefited small businesses as subcontractors.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's internal review processes and any subsequent audits will be key to accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Economic price adjustment introduces cost escalation risk.
- Lack of transparency on justification for sole-source.
- Potential for uncompetitive pricing.
- Contract duration extends over a significant period.
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 $16.1 million to SEAWARD MARINE SERVICES, LLC. ATLANTIC 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 $16.1 million.
What is the period of performance?
Start: 2024-11-08. End: 2025-12-31.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of sufficient competition. Without further details from the Department of the Navy, it's difficult to ascertain the specific rationale. This lack of transparency can raise concerns about whether the government truly explored all competitive options to secure the best value for taxpayers.
How will the economic price adjustment clause impact the final cost of the contract, and what mechanisms are in place to control potential cost overruns?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on changes in specified economic factors, such as labor rates or material costs. The final cost will depend on the volatility of these factors over the contract period. Robust oversight and clear, objective triggers for EPA adjustments are essential to prevent uncontrolled cost escalation and ensure taxpayer funds are used efficiently.
What performance metrics and quality assurance measures are in place to ensure the effectiveness and timely completion of the ship repair services?
Effective oversight of this contract will require clear performance standards, regular progress reviews, and stringent quality assurance protocols. The Department of the Navy should have established metrics for timeliness, quality of work, and adherence to specifications. Regular inspections and performance evaluations are critical to ensure the services meet the required standards for naval vessel readiness.
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: $17,683,277
Exercised Options: $17,683,277
Current Obligation: $16,101,185
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002423D4311
IDV Type: IDC
Timeline
Start Date: 2024-11-08
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-11-21
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