DoD's $8.2M USNS GRASP Mid-Term Availability Contract Awarded to JAG Industrial Services
Contract Overview
Contract Amount: $8,194,047 ($8.2M)
Contractor: JAG Industrial Services, Inc
Awarding Agency: Department of Defense
Start Date: 2025-12-08
End Date: 2026-03-12
Contract Duration: 94 days
Daily Burn Rate: $87.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USNS GRASP FY26 MID TERM AVAILABILITY
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $8.2 million to JAG INDUSTRIAL SERVICES, INC for work described as: USNS GRASP FY26 MID TERM AVAILABILITY Key points: 1. The contract value of $8.2M for ship maintenance is within a reasonable range for this type of service. 2. JAG Industrial Services, Inc. secured the award, indicating existing capabilities in ship repair. 3. The contract type (Firm Fixed Price) shifts risk to the contractor, potentially benefiting the government. 4. The sector is Ship Building and Repairing, a critical component of naval readiness.
Value Assessment
Rating: good
The $8.2M contract value appears reasonable for a mid-term availability of a T-ARS 50 class vessel. Benchmarking against similar maintenance availabilities for comparable naval assets would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition that may have impacted price discovery. Further details on the exclusion justification are needed.
Taxpayer Impact: The limited competition raises questions about whether the most competitive pricing was achieved, potentially impacting taxpayer value.
Public Impact
Ensures operational readiness of the USNS GRASP, a vital asset for naval operations. Supports the shipbuilding and repair industry, contributing to the defense industrial base. The contract's success impacts the Navy's ability to deploy and maintain its fleet effectively.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition justification needs review.
- Potential for cost overruns if scope expands beyond initial fixed price.
Positive Signals
- Firm Fixed Price contract type.
- Clear performance period and deliverables.
- Awarded to a known entity in the sector.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is crucial for maintaining naval fleet readiness. Spending in this sector can fluctuate based on fleet age and modernization needs.
Small Business Impact
The contract was awarded to JAG Industrial Services, Inc. There is no indication of small business participation in this specific award, which warrants further investigation to ensure opportunities are being maximized.
Oversight & Accountability
The Department of the Navy is the contracting agency. Oversight will focus on contract performance, adherence to schedule, and quality of work to ensure taxpayer funds are used effectively.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Potential for scope creep.
- Lack of small business participation noted.
- Contract duration is relatively short, requiring potential future contracts.
Tags
ship-building-and-repairing, department-of-defense, or, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.2 million to JAG INDUSTRIAL SERVICES, INC. USNS GRASP FY26 MID TERM AVAILABILITY
Who is the contractor on this award?
The obligated recipient is JAG INDUSTRIAL SERVICES, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.2 million.
What is the period of performance?
Start: 2025-12-08. End: 2026-03-12.
What was the specific justification for excluding other sources in the full and open competition?
The justification for excluding other sources needs to be thoroughly reviewed to understand if it was valid and if it limited the government's ability to secure the best possible price. Without this information, it's difficult to fully assess the competitive landscape and its impact on value for money.
What are the potential risks associated with the firm-fixed-price contract type for this availability?
While a firm-fixed-price contract shifts risk to the contractor, potential risks include the contractor underbidding and then seeking change orders for additional costs, or performing subpar work to meet the fixed price. Close monitoring of performance and scope is essential.
How does this contract contribute to the overall readiness and effectiveness of the naval fleet?
This contract is essential for maintaining the operational readiness of the USNS GRASP, a support vessel. Ensuring its availability and functionality directly contributes to the Navy's ability to execute its missions, underscoring the effectiveness of such maintenance contracts.
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: N3220525R4081
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 225 E CHICAGO ST, JONESVILLE, MI, 49250
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,590,254
Exercised Options: $8,194,047
Current Obligation: $8,194,047
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-08
Current End Date: 2026-03-12
Potential End Date: 2026-03-12 00:00:00
Last Modified: 2025-12-08
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