DoD Awards $2.67M for Small Boat Lifts, Cleaning, and Inspection to American Marine Corp
Contract Overview
Contract Amount: $2,671,103 ($2.7M)
Contractor: American Marine Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-01
End Date: 2026-09-30
Contract Duration: 1,187 days
Daily Burn Rate: $2.3K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SMALL BOAT LIFTS CLEANING AND INSPECTION
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to AMERICAN MARINE CORPORATION for work described as: SMALL BOAT LIFTS CLEANING AND INSPECTION Key points: 1. Contract awarded to American Marine Corporation for $2.67 million. 2. Services include cleaning and inspection of small boat lifts. 3. Procurement falls under the Ship Building and Repairing NAICS code. 4. The contract is firm-fixed-price with a duration of 1187 days.
Value Assessment
Rating: fair
The contract value of $2.67 million over nearly 3.3 years suggests a moderate annual spend. Benchmarking against similar specialized maritime services is difficult without more detailed scope, but the price appears within a reasonable range for the duration and service type.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely a limited competition. While SAP can offer efficiency, it may not always yield the lowest price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential maintenance and inspection services for naval assets, ensuring operational readiness. The limited competition aspect warrants scrutiny to ensure value for money.
Public Impact
Ensures readiness of naval small boat assets through regular maintenance. Supports specialized maritime services within the shipbuilding and repair sector. Potential for follow-on contracts if performance is satisfactory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may not guarantee best pricing.
- Firm Fixed Price contract offers cost certainty but limits flexibility for unforeseen issues.
Positive Signals
- Clear service scope for cleaning and inspection.
- Long-term contract provides stability for service provider and consistent maintenance.
Sector Analysis
This contract falls within the broader maritime services sector, specifically supporting naval operations. Spending benchmarks for specialized boat lift maintenance are not readily available, but the value is consistent with the duration and scope of services required for naval assets.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or significant subcontractors. Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense. Standard oversight procedures for purchase orders under SAP would apply, focusing on performance and delivery.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Potential for price not being optimized due to SAP.
- Lack of small business participation noted.
- Firm Fixed Price may limit flexibility for scope changes.
Tags
ship-building-and-repairing, department-of-defense, hi, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to AMERICAN MARINE CORPORATION. SMALL BOAT LIFTS CLEANING AND INSPECTION
Who is the contractor on this award?
The obligated recipient is AMERICAN MARINE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2023-07-01. End: 2026-09-30.
What was the specific rationale for using SAP and limiting competition for this contract?
The rationale for using Simplified Acquisition Procedures (SAP) likely stems from the contract's value falling within the SAP threshold, allowing for a streamlined procurement process. Limiting competition may have been based on factors such as urgency, specific technical requirements, or existing relationships, though these would need to be formally justified to ensure fair and open access where possible.
How does the firm-fixed-price structure impact the government's risk and potential for cost overruns?
A firm-fixed-price contract shifts most of the cost risk to the contractor. This provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. However, it can limit flexibility if unforeseen issues arise that require scope changes, potentially leading to contract modifications or disputes if not managed carefully.
What is the expected impact of these cleaning and inspection services on the operational readiness of the small boats?
Regular cleaning and inspection are critical for maintaining the structural integrity and operational functionality of small boat lifts. This proactive maintenance helps prevent costly failures, extends the lifespan of the equipment, and ensures that the naval small boats are ready for deployment when needed, directly contributing to overall mission effectiveness and safety.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: N0060423Q4020
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 65 N NIMITZ HWY, HONOLULU, HI, 96817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,590,802
Exercised Options: $2,671,103
Current Obligation: $2,671,103
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-07-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-12
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