DoD's $21.8M ship repair contract awarded to Cascade General, LLC for USS Emory S. Land

Contract Overview

Contract Amount: $21,812,439 ($21.8M)

Contractor: Cascade General, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2010-09-25

Contract Duration: 360 days

Daily Burn Rate: $60.6K/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: USS EMORY S. LAND RESTRICTED AVAILABILITY 19 OCTOBER 2009 THROUGH 16 MARCH 2010

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98311

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to CASCADE GENERAL, LLC for work described as: USS EMORY S. LAND RESTRICTED AVAILABILITY 19 OCTOBER 2009 THROUGH 16 MARCH 2010 Key points: 1. The contract value of $21.8 million represents a significant investment in naval readiness. 2. Competition dynamics for this contract appear complex, with a 'full and open competition after exclusion of sources' designation. 3. Risk indicators are moderate, given the specialized nature of naval vessel repair and the firm-fixed-price structure. 4. Performance context suggests a focus on timely and effective repair to ensure operational availability of the USS Emory S. Land. 5. Sector positioning places this contract within the critical defense industrial base, specifically ship maintenance and repair.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable repair data. The firm-fixed-price structure aims to control costs, but the final price is influenced by the bidding process and the complexity of the required repairs. The awarded amount of $21.8 million should be assessed against the scope of work and the vessel's condition at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to security, specialized capabilities, or prior performance. The number of bidders (2) indicates a limited pool of qualified contractors, which could impact price negotiation and potentially lead to higher costs compared to a more broadly competed contract with numerous bidders.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most aggressive pricing possible. However, the exclusion of sources might have been necessary to ensure the selection of a contractor with the precise, high-level expertise required for this specialized naval repair.

Public Impact

The primary beneficiaries are the U.S. Navy and national security, through the enhanced operational readiness of the USS Emory S. Land. The services delivered include essential maintenance and repair to ensure the warship's functionality and longevity. The geographic impact is centered around the location of the repair facility, likely in Washington state given the 'WA' designation. Workforce implications include employment for skilled tradespeople and support staff involved in complex ship repair operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repair, despite the firm-fixed-price structure.
Risk of schedule delays impacting naval operational readiness.
Dependence on a limited number of qualified bidders could affect future competition.
Ensuring compliance with stringent naval specifications and quality standards.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a single contractor (Cascade General, LLC) can streamline project management.
The contract duration of 360 days suggests a comprehensive scope of work.
The 'Ship Building and Repairing' NAICS code indicates a specialized industrial capability.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the ship building and repair sector. This sector is characterized by high barriers to entry due to specialized facilities, skilled labor requirements, and stringent regulatory oversight. The market size for naval ship repair is substantial, driven by the U.S. Navy's extensive fleet. Comparable spending benchmarks would involve analyzing other major repair contracts for similar naval vessels, considering factors like vessel class, age, and the scope of work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Cascade General, LLC, would be responsible for its own sourcing of materials and services, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would primarily 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 delivery of specified services within the agreed price. Transparency is generally maintained through contract award databases, though detailed cost breakdowns and specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Repair Contracts
Defense Maintenance and Repair Services
Shipbuilding and Repair Industry
U.S. Navy Fleet Readiness Programs

Risk Flags

Limited competition may impact price discovery.
Potential for schedule delays impacting naval readiness.
Scope definition critical for firm-fixed-price contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to CASCADE GENERAL, LLC. USS EMORY S. LAND RESTRICTED AVAILABILITY 19 OCTOBER 2009 THROUGH 16 MARCH 2010

Who is the contractor on this award?

The obligated recipient is CASCADE GENERAL, 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 $21.8 million.

What is the period of performance?

Start: 2009-09-30. End: 2010-09-25.

What is the track record of Cascade General, LLC in performing similar naval repair contracts?

Assessing the track record of Cascade General, LLC requires a review of their past performance on similar contracts, particularly with the Department of Defense and specifically the Department of the Navy. This would involve examining past performance evaluations, any contract disputes or claims, and their history of meeting schedule and cost objectives on previous naval repair projects. Without access to specific past performance data, it is difficult to definitively gauge their reliability for this particular contract. However, the award itself suggests they met the minimum qualifications and were deemed capable of performing the required work.

How does the awarded amount of $21.8 million compare to the estimated cost or budget for this repair project?

The provided data does not include the government's estimated cost or budget for this repair project, making a direct comparison impossible. The awarded amount of $21.8 million is the price agreed upon through the competitive bidding process. To assess value for money, this figure would need to be compared against an independent government estimate (IGE) or a benchmark derived from similar repair contracts for vessels of comparable size and complexity. The firm-fixed-price nature of the contract implies that the government sought to cap its expenditure at this amount, assuming the scope of work was well-defined.

What specific risks were identified during the procurement process for this contract, and how were they mitigated?

The data indicates a 'full and open competition after exclusion of sources,' suggesting potential risks related to the limited pool of qualified bidders. Risks could include a lack of robust price competition, potential for higher costs, or reliance on a contractor with less extensive experience compared to a broader market. Mitigation strategies might have involved detailed technical evaluations to ensure the selected contractor possessed the necessary specialized skills and facilities, and careful negotiation of contract terms to manage scope and quality. The firm-fixed-price structure itself is a risk mitigation tool against cost overruns for the government, provided the scope is accurately defined.

What is the expected impact of this contract on the operational readiness of the USS Emory S. Land?

This contract is directly aimed at enhancing the operational readiness of the USS Emory S. Land by performing necessary repairs and maintenance. The duration of the contract (360 days) suggests a significant scope of work, likely addressing critical systems and structural integrity. Successful and timely completion of these repairs is expected to restore or improve the vessel's capability to perform its intended missions, ensuring it is available for deployment and operational tasking by the Navy. Delays or substandard work could negatively impact readiness.

How does the spending on this specific contract compare to historical spending on similar ship repair services by the Department of the Navy?

To compare this $21.8 million contract to historical spending, one would need access to historical contract data for similar naval ship repair services. This would involve identifying contracts for repairs on comparable vessels (e.g., same class, age, or size) awarded over previous fiscal years. Analysis would focus on trends in contract values, the number of bidders, and the types of repairs performed. Without this historical data, it's difficult to determine if $21.8 million represents an increase, decrease, or stable level of spending for such services.

What does the 'exclusion of sources' in the competition type imply for the fairness and effectiveness of the bidding process?

The 'exclusion of sources' in 'full and open competition after exclusion of sources' implies that while the competition was open to all responsible sources, certain potential bidders were specifically disqualified or not solicited. This exclusion could be based on various factors, such as national security concerns, lack of specific certifications, inability to meet stringent technical requirements, or past performance issues. While it narrows the field, it is intended to ensure that only capable and appropriate contractors participate. The effectiveness hinges on whether the exclusions were justified and if the remaining pool still provided adequate competition to drive fair pricing and value.

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: N4044209R2012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

Address: 5555 N CHANNEL AVE BLDG 71, PORTLAND, OR, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,395,008

Exercised Options: $23,395,008

Current Obligation: $21,812,439

Contract Characteristics

Cost or Pricing Data: NO

Timeline