DoD Awards $45.9M Contract for Undersea Rescue Vessel Support to Hornbeck Offshore
Contract Overview
Contract Amount: $45,878,592 ($45.9M)
Contractor: Hornbeck Offshore Operators LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-01
End Date: 2025-12-31
Contract Duration: 1,856 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: N103/PM4/C.WOODLEY/ UNDERSEA RESCUE COMMAND VESSEL SUPPORT: BASE POP 01 DEC 20 - 30 NOV 2021
Place of Performance
Location: ALPINE, SAN DIEGO County, CALIFORNIA, 91901
Plain-Language Summary
Department of Defense obligated $45.9 million to HORNBECK OFFSHORE OPERATORS LLC for work described as: N103/PM4/C.WOODLEY/ UNDERSEA RESCUE COMMAND VESSEL SUPPORT: BASE POP 01 DEC 20 - 30 NOV 2021 Key points: 1. Contract awarded to Hornbeck Offshore Operators LLC for undersea rescue vessel support. 2. The contract has a base period of performance from December 1, 2020, to November 30, 2021. 3. The total value of the contract, including options, is $45,878,591.8. 4. The contract was awarded under full and open competition. 5. The primary service is Deep Sea Freight Transportation.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar deep-sea freight transportation contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for essential deep-sea freight transportation services.
Public Impact
Ensures critical support for undersea rescue operations, enhancing national security. Supports naval readiness by providing specialized vessel services. The contract's duration of over 1800 days indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific small business participation noted.
- Potential for cost overruns if operational complexities are underestimated.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical national defense capabilities.
Sector Analysis
This contract falls within the transportation sector, specifically deep-sea freight. Spending in this area is crucial for logistical support of military operations, including specialized rescue missions.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the service inherently favors larger entities.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, suggesting established oversight mechanisms. However, ongoing monitoring of performance and cost adherence is crucial.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may expose government to price volatility.
- No small business participation noted.
- Potential for scope creep or change orders.
- Dependence on a single contractor for critical support.
Tags
deep-sea-freight-transportation, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.9 million to HORNBECK OFFSHORE OPERATORS LLC. N103/PM4/C.WOODLEY/ UNDERSEA RESCUE COMMAND VESSEL SUPPORT: BASE POP 01 DEC 20 - 30 NOV 2021
Who is the contractor on this award?
The obligated recipient is HORNBECK OFFSHORE OPERATORS 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 $45.9 million.
What is the period of performance?
Start: 2020-12-01. End: 2025-12-31.
What is the specific nature of the 'Undersea Rescue Command Vessel Support' and how does it contribute to national security?
Undersea Rescue Command Vessel Support likely involves the provision of specialized vessels and associated services required to deploy, operate, and maintain equipment for rescuing personnel from disabled submarines or other underwater assets. This capability is critical for maintaining naval operational readiness and ensuring the safety of submariners, directly contributing to national security by safeguarding vital military assets and personnel.
Are there any identified risks associated with the long contract duration and the firm fixed price structure?
A significant risk with a long-duration firm fixed price contract is the potential for unforeseen cost increases due to market fluctuations (e.g., fuel prices, labor costs) or operational challenges not anticipated during the bidding phase. If costs rise significantly beyond the initial estimates, the contractor may face reduced profitability, potentially impacting service quality or leading to requests for contract modifications. Conversely, the government benefits from cost certainty if prices remain stable.
How does the 'Deep Sea Freight Transportation' service provided by Hornbeck Offshore Offshore Operators LLC align with the specific needs of undersea rescue operations?
Deep Sea Freight Transportation in this context likely refers to the specialized movement of rescue equipment, personnel, and potentially the rescue vessels themselves to operational areas. This ensures that critical assets can be rapidly deployed globally to respond to emergencies, underscoring the direct link between logistical transportation capabilities and the effectiveness of undersea rescue missions.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3220520R3509
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 103 NORTHPARK BLVD STE 300, COVINGTON, LA, 70433
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: $45,878,592
Exercised Options: $45,878,592
Current Obligation: $45,878,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-23
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