DoD's $14.7M SEAL ASSEMBLY contract awarded to Defense Maritime Solutions, Inc. with no competition

Contract Overview

Contract Amount: $14,699,232 ($14.7M)

Contractor: Defense Maritime Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-05-31

End Date: 2026-01-21

Contract Duration: 600 days

Daily Burn Rate: $24.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SEAL ASSEMBLY,MAIN

Plain-Language Summary

Department of Defense obligated $14.7 million to DEFENSE MARITIME SOLUTIONS, INC. for work described as: SEAL ASSEMBLY,MAIN Key points: 1. The contract value of $14.7 million for SEAL ASSEMBLY, MAIN suggests a significant investment in specialized maritime components. 2. The absence of competition raises concerns about potential overpricing and limited innovation. 3. The fixed-price contract type aims to control costs, but without competition, cost efficiency is harder to verify. 4. The contract duration of 600 days indicates a medium-term need for these components. 5. The primary awardee, Defense Maritime Solutions, Inc., will be the sole provider, concentrating risk and opportunity. 6. The NAICS code 336612 points to the shipbuilding and repair industry, a critical sector for national defense.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.7 million contract for SEAL ASSEMBLY, MAIN is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if the price reflects fair market value. The fixed-price nature provides some cost certainty, but the lack of comparison makes it hard to assess if the government is receiving optimal value for money. Further analysis would require understanding the specific components and their market prices, which are not detailed in the award data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Defense Maritime Solutions, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without competing offers, there's a reduced incentive for the contractor to offer the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are likely naval operations requiring specialized SEAL ASSEMBLY components. The contract will deliver critical parts for maritime vessels, potentially supporting readiness and operational capabilities. The geographic impact is likely concentrated around the Navy's operational bases and the contractor's facilities. Workforce implications may include specialized manufacturing and assembly roles at Defense Maritime Solutions, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for other qualified small or large businesses.
Dependence on a single supplier increases supply chain risk.
Limited transparency in pricing due to absence of bids.

Positive Signals

Contract awarded to a specific company, potentially indicating specialized expertise.
Fixed-price contract type can help manage budget predictability.
Supports critical defense maritime needs.

Sector Analysis

The shipbuilding and repair industry (NAICS 336612) is a vital component of the defense industrial base. This contract for SEAL ASSEMBLY, MAIN falls within this sector, which is characterized by complex manufacturing processes, high technical requirements, and significant government investment. Comparable spending in this sector often involves large-scale vessel construction and maintenance, with individual component contracts varying widely in value based on specificity and quantity.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses. The sole-source nature of the award means that opportunities for small businesses to participate in this specific contract are limited. This could represent a missed opportunity to foster small business growth within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source nature, and Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Vessel Component Procurement
Maritime Defense Systems
Shipbuilding and Repair Contracts
Defense Supply Chain Management

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competitive benchmarking.
Dependence on a single supplier creates supply chain vulnerability.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to DEFENSE MARITIME SOLUTIONS, INC.. SEAL ASSEMBLY,MAIN

Who is the contractor on this award?

The obligated recipient is DEFENSE MARITIME SOLUTIONS, 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 $14.7 million.

What is the period of performance?

Start: 2024-05-31. End: 2026-01-21.

What specific components constitute the 'SEAL ASSEMBLY, MAIN' and what is their criticality to naval operations?

The 'SEAL ASSEMBLY, MAIN' likely refers to a critical set of components used in sealing systems for naval vessels, potentially for propulsion, weapons, or life support systems. These seals are crucial for maintaining operational integrity, preventing leaks of fluids or gases, and ensuring the safety and functionality of the ship's systems under demanding conditions. Their criticality stems from the harsh maritime environment and the high-stakes nature of naval deployments, where system failures can have severe consequences. Without more specific product details, it's difficult to pinpoint the exact application, but such assemblies are fundamental to the seaworthiness and operational readiness of naval assets.

What is the historical spending pattern for 'SEAL ASSEMBLY, MAIN' or similar components by the Department of the Navy?

Analyzing historical spending for 'SEAL ASSEMBLY, MAIN' specifically is challenging without a unique contract line item number or more granular product identification. However, the Department of the Navy consistently spends billions annually on shipbuilding, repair, and maintenance, which includes a vast array of specialized components like seals. Past procurements for similar critical maritime components, especially those requiring specialized manufacturing or proprietary technology, have often been awarded through limited or sole-source contracts when a specific vendor possesses unique capabilities or when urgency dictates. The $14.7 million value for this single delivery order suggests it's a significant procurement, possibly for a new class of vessels, a major refit, or a critical upgrade program.

What are the specific capabilities of Defense Maritime Solutions, Inc. that justify a sole-source award for this contract?

A sole-source award typically implies that the contracting agency has determined that only one responsible source is capable of providing the required supplies or services. For Defense Maritime Solutions, Inc. to be awarded this contract without competition, it suggests they possess unique manufacturing capabilities, proprietary technology, specialized expertise, or hold specific certifications essential for producing the 'SEAL ASSEMBLY, MAIN'. This could be due to patented designs, exclusive licensing agreements, or a proven track record with highly specialized, low-volume production that other companies cannot replicate. The Department of the Navy would have conducted market research and justification to support this determination, likely documented in a Justification and Approval (J&A) for other than full and open competition.

What is the potential impact of this sole-source award on future competition for similar maritime components?

Sole-source awards can have a chilling effect on future competition. By awarding this contract exclusively to Defense Maritime Solutions, Inc., the Department of the Navy may inadvertently signal to other potential suppliers that the market for these specific 'SEAL ASSEMBLY, MAIN' components is closed or dominated by a single entity. This can discourage other companies from investing in the necessary research, development, and manufacturing capabilities required to compete in the future. Furthermore, without the pressure of competition, the incumbent contractor may have less incentive to innovate or reduce costs, potentially locking the government into higher prices for subsequent procurements unless proactive steps are taken to foster broader market engagement.

Are there any performance risks associated with Defense Maritime Solutions, Inc. based on their past contract history?

Assessing performance risks for Defense Maritime Solutions, Inc. requires a review of their contract history, including past performance evaluations, delivery timeliness, quality control records, and any instances of contract disputes or terminations. Without access to this specific performance data, it is impossible to definitively state the risks. However, any contractor, regardless of size or specialization, carries inherent performance risks. For a sole-source award, the government often relies heavily on the contractor's demonstrated past performance and reputation. If Defense Maritime Solutions, Inc. has a history of successful, on-time, and high-quality deliveries for similar complex components, the risk is likely mitigated. Conversely, any past issues could elevate the risk profile for this significant contract.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0010422RNH19

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3617 KOPPENS WAY, CHESAPEAKE, VA, 23323

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

Financial Breakdown

Contract Ceiling: $14,699,232

Exercised Options: $14,699,232

Current Obligation: $14,699,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0010423GZL01

IDV Type: BOA

Timeline