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

State: California Government Spending

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 WarehousingDeep Sea, Coastal, and Great Lakes Water TransportationDeep Sea Freight Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION 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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