Navy awards $32.6M emergency dry docking contract to Boston Ship Repair LLC for USNS Brunswick

Contract Overview

Contract Amount: $32,647,523 ($32.6M)

Contractor: Boston Ship Repair LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-27

End Date: 2025-04-30

Contract Duration: 338 days

Daily Burn Rate: $96.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N104B - D. FINKE - PM8 - USNS BRUNSWICK EMERGENCY DRY DOCKING

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to BOSTON SHIP REPAIR LLC for work described as: N104B - D. FINKE - PM8 - USNS BRUNSWICK EMERGENCY DRY DOCKING Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The contract's firm-fixed-price structure aims to control costs for the emergency repair services. 3. A duration of 338 days suggests a comprehensive scope of work for the vessel's maintenance. 4. The award value of $32.6 million represents a significant investment in maintaining naval readiness. 5. The contract is for emergency dry docking, highlighting a critical and time-sensitive need. 6. The primary contractor, Boston Ship Repair LLC, is based in Massachusetts, aligning with regional industrial capabilities.

Value Assessment

Rating: fair

The contract value of $32.6 million for emergency dry docking of a vessel over approximately one year appears to be within a reasonable range for specialized maritime services. Benchmarking against similar emergency repair contracts is challenging due to the unique nature of such events and the specific vessel requirements. However, the firm-fixed-price nature suggests an attempt to establish a clear cost ceiling. Further analysis would require detailed breakdowns of the services included and comparison with historical dry-docking costs for similar naval assets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be broad, certain sources were excluded for reasons not immediately apparent from the provided data. It implies that a competitive process occurred among eligible bidders, but the initial pool of potential offerors may have been narrowed. The number of bids received (3) indicates a moderate level of competition for this specialized service.

Taxpayer Impact: The 'limited' competition, despite being 'full and open after exclusion,' may mean that taxpayers did not benefit from the widest possible range of bids, potentially impacting the final price. However, three bids still provide a basis for price comparison and negotiation.

Public Impact

Naval readiness and operational capability are enhanced through the maintenance of the USNS Brunswick. The contract supports the U.S. Navy's logistical and operational requirements. The services are delivered within Massachusetts, supporting the regional maritime industrial base. The contract indirectly supports skilled labor in the shipbuilding and repair sector in Massachusetts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in a 'full and open' competition warrants further investigation to ensure no viable competitors were unfairly barred.
The emergency nature of the contract could imply a premium cost compared to planned maintenance.
Limited competition (3 bidders) may have reduced the potential for aggressive pricing.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
The contract duration of 338 days suggests a thorough and comprehensive repair process.
Awarding to a domestic company in Massachusetts supports the U.S. shipbuilding and repair industry.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense and maritime commerce. This contract falls within the broader industrial base supporting naval operations. The market for specialized vessel dry docking and repair is often characterized by a limited number of highly qualified firms capable of undertaking complex projects, especially for military vessels. Spending in this sector is driven by fleet maintenance schedules, operational demands, and national security priorities.

Small Business Impact

The provided data indicates that small business set-aside (ss) and subcontracting (sb) were not applicable or were not utilized for this contract. This suggests the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting opportunities for small businesses within this award. The focus appears to be on securing specialized services from capable prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature provides a degree of cost control. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The contract's duration and scope will necessitate ongoing monitoring of performance and adherence to terms.

Related Government Programs

Naval Vessel Repair Contracts
Shipbuilding and Repair Services
Defense Logistics Agency Contracts
Maritime Administration Contracts

Risk Flags

Potential for cost overruns if scope expands beyond initial emergency assessment.
Risk of quality compromise if contractor faces unexpected cost pressures.
Justification for 'exclusion of sources' needs verification.
Limited competition may impact optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to BOSTON SHIP REPAIR LLC. N104B - D. FINKE - PM8 - USNS BRUNSWICK EMERGENCY DRY DOCKING

Who is the contractor on this award?

The obligated recipient is BOSTON SHIP REPAIR 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 $32.6 million.

What is the period of performance?

Start: 2024-05-27. End: 2025-04-30.

What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?

The specific criteria leading to the exclusion of sources in a 'full and open competition after exclusion of sources' award are not detailed in the provided data. This procurement method typically involves a justification for excluding specific entities, which could be based on factors such as security clearances, specialized technical capabilities, past performance issues, or specific regulatory requirements. Without the contract's justification document or detailed solicitation, the exact reasons for exclusion remain unknown. Agencies use this method when they believe a broader competition is possible but certain entities do not meet preliminary requirements or are otherwise ineligible. It is crucial to review the contract file or agency's justification for such exclusions to ensure fairness and compliance with procurement regulations.

How does the $32.6 million award compare to typical emergency dry docking costs for similar naval vessels?

Direct comparison of the $32.6 million award for the USNS Brunswick's emergency dry docking to 'typical' costs is challenging without more specific data on the vessel's class, size, and the exact scope of emergency repairs required. Emergency repairs often incur a premium due to urgency, limited vendor availability, and the need for immediate mobilization. However, major dry docking and overhaul for large naval vessels can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract suggests a defined scope and budget. To assess value, one would need to compare the specific work items, labor hours, materials, and overhead included in this $32.6 million against similar emergency repair contracts awarded by the Navy or other maritime entities for comparable vessels, considering the time sensitivity and specialized nature of the work.

What is the track record of Boston Ship Repair LLC in handling large-scale naval repair contracts?

Information regarding Boston Ship Repair LLC's specific track record with large-scale naval repair contracts is not detailed in the provided data. To assess their capability, one would need to examine their past performance history, including previous contracts with the Department of Defense or other government agencies, the size and complexity of those projects, client feedback, and any history of disputes or contract terminations. A review of federal procurement databases (like SAM.gov or FPDS) and contractor performance assessment reports (CPARS) would be necessary to gain a comprehensive understanding of their experience and reliability in executing similar naval repair work.

What are the potential risks associated with a firm-fixed-price contract for emergency repairs?

While firm-fixed-price (FFP) contracts are generally preferred for cost control, they can introduce risks, especially in emergency repair scenarios. For the contractor, the primary risk is underestimating the scope or complexity of the emergency repairs, leading to cost overruns that they must absorb. This could potentially impact the quality of work or lead to financial strain for the contractor. For the government, the risk is that the contractor may cut corners on quality or scope to protect their profit margin if unforeseen issues arise, or that the initial fixed price may be inflated to account for the contractor's perceived risk. Effective oversight and clear contract specifications are crucial to mitigate these risks.

How does the duration of 338 days align with the typical timeframe for emergency dry docking and repairs?

A duration of 338 days (approximately 11 months) for emergency dry docking and repairs is a substantial period, suggesting a significant scope of work beyond routine maintenance. While 'emergency' implies urgency, the actual time required depends heavily on the nature of the damage or issue, the complexity of the required repairs, the availability of parts and specialized labor, and the vessel's operational schedule. For major overhauls or extensive repairs, such a timeframe might be standard. However, if the 'emergency' was for a relatively minor issue, this duration could indicate potential inefficiencies or a very broad interpretation of the required work. Benchmarking against similar emergency repair durations for comparable vessels would be necessary for a definitive assessment.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220524R4126

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 32A DRYDOCK AVE, BOSTON, MA, 02210

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,726,769

Exercised Options: $32,647,523

Current Obligation: $32,647,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline