DoD's $18.8M Ship Repair Contract Awarded to Guam Industrial Services Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $18,875,615 ($18.9M)
Contractor: Guam Industrial Services Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-11
End Date: 2010-09-30
Contract Duration: 203 days
Daily Burn Rate: $93.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CATEGORY "A" ITEMS
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $18.9 million to GUAM INDUSTRIAL SERVICES INC for work described as: CATEGORY "A" ITEMS Key points: 1. The contract value of $18.8M is significant for ship repair services. 2. Guam Industrial Services Inc. secured this contract through full and open competition. 3. The contract duration of 203 days suggests a substantial scope of work. 4. The award falls under the Ship Building and Repairing NAICS code (336611).
Value Assessment
Rating: good
The contract was awarded under a firm fixed price, which provides cost certainty. The awarded amount of $18.8M needs to be benchmarked against similar ship repair contracts to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process that aimed to maximize participation. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield a fair price for taxpayers, ensuring value for money spent on essential defense services.
Public Impact
Ensures operational readiness of naval vessels through essential repair services. Supports the defense industrial base in the Guam region. Provides employment opportunities within the ship repair sector.
Waste & Efficiency Indicators
Waste Risk Score: 92 / 10
Warning Flags
- Contract awarded in 2010, may not reflect current market prices.
- Limited information on specific repair scope and deliverables.
- Small business status not indicated, potential missed opportunity for SMB participation.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Significant value contract awarded to a specific company.
Sector Analysis
The ship building and repairing sector is critical for national defense, involving complex and high-value contracts. Spending benchmarks for similar naval repair services would provide further context for this award.
Small Business Impact
The data indicates that Guam Industrial Services Inc. is not a small business (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
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 procurement. The 'full and open competition' method suggests a degree of accountability in the process.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Award date is historical (2010).
- Potential for cost overruns if scope was underestimated.
- Lack of small business participation noted.
- Limited detail on specific deliverables and performance metrics.
Tags
ship-building-and-repairing, department-of-defense, gu, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to GUAM INDUSTRIAL SERVICES INC. CATEGORY "A" ITEMS
Who is the contractor on this award?
The obligated recipient is GUAM INDUSTRIAL SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2010-03-11. End: 2010-09-30.
What was the competitive landscape like for ship repair services in Guam during 2010, and how did this influence the final contract price?
In 2010, the competitive landscape for ship repair in Guam likely involved a limited number of specialized firms capable of handling naval contracts. The 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was open, certain criteria or exclusions were applied, potentially narrowing the field. This could have influenced price discovery, but the firm fixed price structure aimed to cap costs for the government regardless of the competitive intensity.
What are the potential risks associated with a firm fixed price contract for ship repair, especially given the 2010 award date?
A primary risk of a firm fixed price contract is that the contractor may face unforeseen cost increases during performance, potentially leading to reduced quality or disputes if not managed carefully. For a 2010 award, the risk of outdated pricing is also present; the fixed price might not reflect current material costs or labor rates, potentially impacting the contractor's profitability or the government's value if the price was set too high initially.
How effective was this contract in meeting the Department of the Navy's shipbuilding and repairing needs, considering its duration and scope?
The effectiveness of this contract hinges on the successful completion of the required ship repairs within the 203-day timeframe and adherence to the firm fixed price. Without post-award performance data, it's difficult to definitively assess effectiveness. However, the competitive award process and fixed price structure suggest an intent to ensure both timely execution and cost control, which are key indicators of contract effectiveness.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003310R7500
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: COMNAVMAR BUILDING 20, SANTA RITA, GU, 96915
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,585,435
Exercised Options: $18,875,615
Current Obligation: $18,875,615
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2010-03-11
Current End Date: 2010-09-30
Potential End Date: 2013-03-19 00:00:00
Last Modified: 2015-11-18
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