Navy awards $11.2M for USS Frank Cable repair, with Guam Industrial Services Inc. securing the contract

Contract Overview

Contract Amount: $11,190,239 ($11.2M)

Contractor: Guam Industrial Services Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-25

End Date: 2010-09-12

Contract Duration: 1,448 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS FRANK CABLE (AS-40) REPAIR AND MAINTENANCE PMA, SPECIFICATION # SSP-724-07

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $11.2 million to GUAM INDUSTRIAL SERVICES INC for work described as: USS FRANK CABLE (AS-40) REPAIR AND MAINTENANCE PMA, SPECIFICATION # SSP-724-07 Key points: 1. The contract value of $11.2 million for ship repair and maintenance appears to be within a reasonable range for specialized naval vessel services. 2. Competition dynamics for this contract were limited, as indicated by 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential for higher pricing. 3. Risk indicators are moderate, given the specialized nature of naval repair and the single awardee, but the firm fixed-price structure mitigates some cost overrun risks. 4. Performance context is crucial; the duration of 1448 days suggests a comprehensive scope of work for the USS Frank Cable (AS-40). 5. Sector positioning is within the Defense industrial base, specifically ship building and repairing, a critical but often high-cost sector. 6. The contract's geographic focus on Guam highlights the strategic importance of the region for naval operations and maintenance.

Value Assessment

Rating: fair

Benchmarking the exact value of this contract is challenging without specific details on the scope of work and the condition of the USS Frank Cable (AS-40). However, ship repair and maintenance for naval vessels are complex and costly endeavors. The firm fixed-price contract type suggests that the government has a clear understanding of the expected costs, but the limited competition could have led to a less competitive price than if more bidders had participated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of eligible bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes arise due to specialized capabilities or geographic requirements.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers compared to a fully open and unrestricted bidding process, as fewer companies are vying for the contract.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness of the USS Frank Cable (AS-40). Services delivered include essential repair and maintenance to keep a critical naval asset functional. The geographic impact is concentrated in Guam, supporting naval operations in the Indo-Pacific region. Workforce implications include employment for skilled tradespeople and support staff involved in ship repair within Guam.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for the government.
The exclusion of sources, if not fully justified, raises questions about the breadth of market engagement.
Dependence on a single contractor for specialized repair work can create risks if performance issues arise.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Awarding to a Guam-based industrial services company supports regional economic development and naval presence.
The contract duration suggests a comprehensive and potentially high-quality repair and maintenance effort.

Sector Analysis

The ship building and repairing sector (NAICS 336611) is a critical component of the defense industrial base, involving highly specialized skills and facilities. Contracts in this area are often substantial due to the complexity and scale of naval vessels. Spending benchmarks are difficult to establish without detailed comparisons of vessel types and repair scopes, but major overhauls and maintenance periods for naval ships can run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component (SS: false, SB: false). Given the specialized nature of naval ship repair, it is common for such contracts to be awarded to larger, established industrial firms with the necessary infrastructure and expertise. There is no explicit information on subcontracting opportunities for small businesses within this award notice.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Naval Ship Repair and Maintenance
Fleet Readiness
Shipbuilding and Repair Services
Defense Logistics and Maintenance

Risk Flags

Limited competition may impact price.
Potential for performance issues with a single awardee.
Justification for source exclusion needs clarity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to GUAM INDUSTRIAL SERVICES INC. USS FRANK CABLE (AS-40) REPAIR AND MAINTENANCE PMA, SPECIFICATION # SSP-724-07

Who is the contractor on this award?

The obligated recipient is GUAM 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 $11.2 million.

What is the period of performance?

Start: 2006-09-25. End: 2010-09-12.

What is the track record of Guam Industrial Services Inc. in performing similar naval repair contracts?

Information regarding the specific track record of Guam Industrial Services Inc. for similar naval repair contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. The award itself suggests they met the minimum requirements for this specific contract. Further investigation into their past performance with the Department of Defense or other maritime clients would be necessary to fully gauge their reliability and expertise in this specialized field.

How does the awarded amount compare to the estimated cost or budget for this repair and maintenance project?

The provided data indicates the awarded amount is $11,190,239.26. However, there is no information on the government's estimated cost or the initial budget allocated for this specific repair and maintenance project for the USS Frank Cable (AS-40). Without this comparison, it is difficult to definitively assess whether the contract was awarded at a competitive price relative to expectations. The firm fixed-price nature suggests the government aimed to cap its expenditure, but the relationship between the award and the internal estimate remains unknown from this data alone.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that while the competition was intended to be open, certain potential bidders were deliberately excluded. The primary risk for the government is that this exclusion might have limited the pool of qualified contractors, potentially leading to a less competitive bidding environment and a higher final price than if all capable sources had been allowed to compete. It could also indicate that the excluded sources lacked specific, critical capabilities required for this specialized repair, or that there were other justifications for their exclusion. Understanding the rationale behind the exclusion is key to assessing the associated risks.

What is the expected impact of these repairs on the operational readiness and service life of the USS Frank Cable (AS-40)?

The contract is for repair and maintenance of the USS Frank Cable (AS-40), a Vulcan-class submarine tender. Such extensive work, spanning 1448 days (approximately 4 years), is typically undertaken to ensure the vessel's continued operational readiness and to extend its service life. The repairs likely address critical systems, hull integrity, propulsion, and habitability, all essential for the ship's function as a mobile repair facility and support platform. Successful completion of this contract should restore or maintain the ship's capabilities to meet its mission requirements.

How does spending on ship repair and maintenance in Guam compare to other naval bases or regions?

The provided data focuses on a single contract awarded in Guam. To compare spending on ship repair and maintenance in Guam to other naval bases or regions, a broader analysis of historical contract awards, budget allocations, and operational tempo across different geographic locations would be required. Guam's strategic importance in the Indo-Pacific likely drives significant investment in maintaining naval assets there. However, without comparative data on contract values, frequencies, and the types of vessels serviced at other bases (e.g., Norfolk, San Diego, Yokosuka), a direct comparison of spending levels is not feasible from this dataset.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided award data. However, for ship repair and maintenance contracts, typical KPIs often include adherence to schedule (completion within the 1448-day duration), quality of work (meeting technical specifications and standards), cost control (staying within the firm fixed price), safety performance (minimizing accidents and incidents), and overall customer satisfaction from the Navy's perspective. The success of the contract would be measured against these types of metrics, likely documented in post-award performance reviews.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BLDG. 20, NAVAL ACTIVITIES BRANCH, SANTA RITA, GU, 98

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,267,709

Exercised Options: $11,190,239

Current Obligation: $11,190,239

Contract Characteristics

Cost or Pricing Data: NO

Timeline