DoD awards $3.77M for 48,000-hour diesel engine maintenance on USNS Charles Drew

Contract Overview

Contract Amount: $3,766,668 ($3.8M)

Contractor: Everllence Middle East and Africa L.L.C

Awarding Agency: Department of Defense

Start Date: 2025-05-30

End Date: 2026-01-09

Contract Duration: 224 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8 CYLINDER (CL) MAIN DIESEL ENGINE (MDE) AND 9CL MDE 48,000-HOUR MAINTENANCE ONBOARD THE USNS CHARLES DREW (T-AKE 10). MSC ACTION DESCRIPTION - N2360243034074

Plain-Language Summary

Department of Defense obligated $3.8 million to EVERLLENCE MIDDLE EAST AND AFRICA L.L.C for work described as: 8 CYLINDER (CL) MAIN DIESEL ENGINE (MDE) AND 9CL MDE 48,000-HOUR MAINTENANCE ONBOARD THE USNS CHARLES DREW (T-AKE 10). MSC ACTION DESCRIPTION - N2360243034074 Key points: 1. Contract awarded to Everllence Middle East and Africa L.L.C. for essential vessel maintenance. 2. Maintenance covers 8-cylinder and 9-cylinder main diesel engines, crucial for ship operation. 3. The contract duration is 224 days, indicating a focused maintenance period. 4. This is a delivery order under an existing contract, suggesting prior vetting of the contractor.

Value Assessment

Rating: good

The $3.77 million award for a 48,000-hour maintenance cycle appears reasonable given the specialized nature of large diesel engines and the critical operational requirements of a T-AKE class vessel. Benchmarking against similar complex marine engine overhauls would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific reasons led to excluding certain potential bidders. This method can sometimes limit price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential military sealift command vessel maintenance, ensuring operational readiness. The chosen competition method aims for a balance between ensuring qualified providers and achieving a fair price.

Public Impact

Ensures the operational readiness of the USNS Charles Drew, a critical asset for military logistics. Supports the maintenance of specialized diesel engines, contributing to the longevity and reliability of naval vessels. The award impacts the maritime maintenance sector, specifically focusing on large engine overhauls. This contract contributes to the Department of Defense's ability to project power and deliver supplies globally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may not yield the lowest possible price.
Lack of small business participation noted.
Contract duration is relatively short for a major overhaul, potential for follow-on needs.

Positive Signals

Awarded to a specialized contractor with relevant experience.
Maintenance ensures critical operational capability of a naval vessel.
Delivery order under an existing contract suggests some level of pre-qualification.

Sector Analysis

This contract falls within the 'Other Engine Equipment Manufacturing' sector, specifically focusing on heavy-duty marine diesel engine maintenance. Spending in this niche area is driven by the operational needs of the U.S. Navy's fleet, requiring specialized technical expertise and facilities.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award (sb: false). Opportunities for small businesses in this sector often lie in subcontracting roles for specialized parts or labor, which are not detailed here.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting some level of pre-existing oversight. Further review of the parent contract and the specific justification for excluding sources would be necessary to fully assess oversight effectiveness.

Related Government Programs

Other Engine Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition may result in higher costs.
No small business participation.
Potential for cost overruns if unforeseen issues arise during maintenance.
Dependence on a single contractor for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to EVERLLENCE MIDDLE EAST AND AFRICA L.L.C. 8 CYLINDER (CL) MAIN DIESEL ENGINE (MDE) AND 9CL MDE 48,000-HOUR MAINTENANCE ONBOARD THE USNS CHARLES DREW (T-AKE 10). MSC ACTION DESCRIPTION - N2360243034074

Who is the contractor on this award?

The obligated recipient is EVERLLENCE MIDDLE EAST AND AFRICA L.L.C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2025-05-30. End: 2026-01-09.

What was the specific justification for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The justification for excluding sources typically relates to factors like specialized technical capabilities, proprietary technology, or urgent requirements that only a limited number of contractors can meet. Understanding this rationale is key to assessing if the price achieved reflects fair market value or if the exclusion led to a higher cost for taxpayers due to reduced competition.

What is the benchmark cost for a 48,000-hour maintenance cycle on similar 8-cylinder and 9-cylinder main diesel engines in the commercial maritime sector?

Benchmarking against commercial contracts for similar engine maintenance is crucial for evaluating value. Commercial rates can vary significantly based on vessel type, engine manufacturer, and geographic location. A substantial deviation from commercial benchmarks, especially if higher, could indicate potential inefficiencies or a premium paid for military-specific requirements.

What is the track record of Everllence Middle East and Africa L.L.C. in performing similar large-scale diesel engine maintenance for the Department of Defense?

Assessing the contractor's past performance is vital for understanding the risk associated with this award. A history of successful, on-time, and within-budget completions for similar complex maintenance tasks would indicate a lower risk profile. Conversely, past issues could suggest potential challenges in execution, cost overruns, or schedule delays.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: JUMEIRAH BEACH ROAD, DRY DOCKS WORLD DUBAI, DUBAI

Business Categories: Category Business, Foreign Owned, International Organization, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,766,668

Exercised Options: $3,766,668

Current Obligation: $3,766,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3220521D4105

IDV Type: IDC

Timeline