Navy Awards $25.4M Ship Repair Contract to Vigor Marine LLC Under Full and Open Competition

Contract Overview

Contract Amount: $25,454,415 ($25.5M)

Contractor: Vigor Marine LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-10

End Date: 2023-12-12

Contract Duration: 155 days

Daily Burn Rate: $164.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N104A1/PM1/N.BOWERS/USNS GAUDALUPE MID TERM AVAILABILITY

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to VIGOR MARINE LLC for work described as: N104A1/PM1/N.BOWERS/USNS GAUDALUPE MID TERM AVAILABILITY Key points: 1. The contract for the USNS Guadalupe mid-term availability was awarded to Vigor Marine LLC. 2. This represents a significant award within the Ship Building and Repairing sector. 3. The contract was secured through full and open competition, suggesting a competitive bidding process. 4. The firm fixed price contract type aims to control costs for the Department of the Navy.

Value Assessment

Rating: good

The contract value of $25.4M for a 155-day availability appears reasonable given the scope of ship repair. Benchmarking against similar mid-term availabilities for T-AOE class vessels would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition and a firm fixed price contract aims to ensure taxpayer funds are used efficiently for necessary vessel maintenance.

Public Impact

Ensures operational readiness of the USNS Guadalupe, a critical asset for naval logistics. Supports jobs within the shipbuilding and repairing industry, particularly in Oregon. Demonstrates the Navy's commitment to competitive procurement for major maintenance activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise beyond the scope of the firm fixed price.
Dependence on a single contractor for a critical maintenance period.

Positive Signals

Competitive award process likely secured a fair market price.
Firm fixed price contract provides cost certainty.
Contract duration aligns with typical mid-term availability schedules.

Sector Analysis

The Ship Building and Repairing sector (NAICS 336611) is capital-intensive and requires specialized facilities and labor. Contract values can vary significantly based on vessel class, age, and scope of work.

Small Business Impact

While Vigor Marine LLC is a large business, the competitive nature of the award suggests opportunities for small businesses to participate as subcontractors for specialized services or supplies.

Oversight & Accountability

The Department of the Navy's contracting process, including the use of full and open competition and firm fixed price contracts, provides a framework for oversight. Post-award monitoring will be crucial to ensure performance and adherence to contract terms.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract awarded to a single large business.
Potential for scope creep or unforeseen issues impacting fixed price.
Limited visibility into subcontractor performance.
Dependence on specific regional repair capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to VIGOR MARINE LLC. N104A1/PM1/N.BOWERS/USNS GAUDALUPE MID TERM AVAILABILITY

Who is the contractor on this award?

The obligated recipient is VIGOR MARINE 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 $25.5 million.

What is the period of performance?

Start: 2023-07-10. End: 2023-12-12.

What specific maintenance and repair tasks are included in the $25.4M contract to ensure value for money?

The contract details the specific scope of work for the USNS Guadalupe's mid-term availability, likely encompassing hull maintenance, propulsion system servicing, auxiliary machinery repair, and system upgrades. A thorough review of the SOW against industry standards and historical data is necessary to confirm value. The firm fixed price suggests the government has a clear understanding of the required work and associated costs.

What are the potential risks associated with a firm fixed price contract for a complex ship availability?

The primary risk with a firm fixed price contract is the potential for the contractor to incur losses if unforeseen issues arise during the availability that increase costs beyond the agreed price. This could lead to contractor disputes, requests for equitable adjustments, or even contract termination. Conversely, the government risks paying a premium if the contractor's initial bid was overly conservative.

How effectively does the full and open competition process ensure the best possible outcome for this naval vessel availability?

Full and open competition is designed to maximize the number of qualified bidders, thereby fostering a competitive environment that drives down prices and encourages innovation. This process increases the likelihood that the Navy receives the best value, considering both cost and technical capabilities. However, the effectiveness also depends on the clarity of the solicitation and the evaluation criteria used.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220523R4016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC

Address: 5555 N CHANNEL AVE, PORTLAND, OR, 97217

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: $25,454,415

Exercised Options: $25,454,415

Current Obligation: $25,454,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline