Naval Facilities Engineering Command awarded $15.2M contract for engineering services to Harbor Offshore, Inc

Contract Overview

Contract Amount: $15,235,842 ($15.2M)

Contractor: Harbor Offshore, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-08

End Date: 2006-09-30

Contract Duration: 814 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200410!000886!1700!C7408 !NAVAL FACILITIES ENGINEERING COM!N4740804C7521 !A!N! !N! ! !20040708!20050131!013021899!013021899!013021899!N!HARBOR OFFSHORE INC !4350 TRANSPORT STREET, SUI!VENTURA !CA!93003!21264!111!06!EAST VENTURA !VENTURA !CALIFORNIA!+000007458399!N!N!000007458399!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!3A!A!N!Z! ! !N!A!N!Y!B! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93003

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to HARBOR OFFSHORE, INC. for work described as: 200410!000886!1700!C7408 !NAVAL FACILITIES ENGINEERING COM!N4740804C7521 !A!N! !N! ! !20040708!20050131!013021899!013021899!013021899!N!HARBOR OFFSHORE INC !4350 TRANSPORT STREET, SUI!VENTURA !CA!93003!21264!111!06!EAST VENTURA !VENT… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 3. Performance period of 814 days suggests a significant, ongoing need for these engineering services. 4. The specific engineering services provided are not detailed, making it difficult to assess value for money. 5. Awarded to a single vendor, limiting opportunities for market-based price discovery. 6. The contract was not competed, indicating potential limitations in the procurement process.

Value Assessment

Rating: questionable

The contract's total value of $15.2 million for engineering services is substantial. Without comparable contract data or a detailed breakdown of services, it's challenging to benchmark the value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, carries inherent risks of cost escalation if not managed rigorously. The lack of competition further complicates a direct value assessment, as there's no market benchmark to compare against.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency precludes a competitive process. The absence of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from a bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without competing offers, there's less assurance that the price reflects the best possible value achievable in the market.

Public Impact

The primary beneficiary is the Department of the Navy, which receives essential engineering technical services. Services delivered likely support naval infrastructure projects and operational readiness. Geographic impact is centered around Ventura, California, where the contractor is located. Workforce implications include employment for engineers and technical staff at Harbor Offshore, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee structure can lead to cost overruns if not managed.
Lack of detailed service description hinders performance assessment.
Limited transparency on the justification for sole-source award.

Positive Signals

Contract awarded to a known entity (Harbor Offshore, Inc.).
Services are essential for naval operations.
Contract has a defined performance period.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a broad category encompassing architectural, engineering, and related services. The federal government is a significant consumer of these services, particularly for infrastructure maintenance, design, and construction projects across various agencies. The market for engineering services is competitive, with many firms offering specialized expertise. However, specific niche requirements or urgent needs can sometimes lead to non-competitive awards.

Small Business Impact

This contract does not appear to have a small business set-aside designation, nor is there information indicating significant subcontracting opportunities for small businesses. The award to Harbor Offshore, Inc., without specific set-aside provisions, suggests it was not primarily aimed at fostering small business participation. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Naval Facilities Engineering Command contracting officers and program managers. Accountability measures would be tied to the terms of the cost-plus-fixed-fee agreement, requiring the contractor to adhere to the scope of work and manage costs. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports.

Related Government Programs

Naval Facilities Engineering Command Contracts
Department of Defense Engineering Services
Sole-Source Defense Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of detailed service description

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to HARBOR OFFSHORE, INC.. 200410!000886!1700!C7408 !NAVAL FACILITIES ENGINEERING COM!N4740804C7521 !A!N! !N! ! !20040708!20050131!013021899!013021899!013021899!N!HARBOR OFFSHORE INC !4350 TRANSPORT STREET, SUI!VENTURA !CA!93003!21264!111!06!EAST VENTURA !VENTURA !CALIFORNIA!+000007458399!N!N!000007458399!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is HARBOR OFFSHORE, 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 $15.2 million.

What is the period of performance?

Start: 2004-07-08. End: 2006-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further documentation or agency explanation, the precise reason for bypassing a competitive bidding process remains unclear. This lack of transparency can raise concerns about whether the government obtained the best possible value.

How does the cost-plus-fixed-fee structure impact the contractor's incentives and potential for cost overruns?

A Cost-Plus-Fixed-Fee (CPFF) contract provides for a cost reimbursement plus a fixed amount of profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also carries a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise during performance. Effective government oversight is crucial to monitor costs and ensure the contractor remains within reasonable bounds while delivering the required services.

What specific engineering services were provided under this contract, and how were they valued?

The contract identifies the service as 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541330. However, the data does not provide a detailed breakdown of the specific tasks, deliverables, or sub-categories of engineering services rendered. The total award amount was $15,235,842. Without a more granular understanding of the scope of work, it is difficult to perform a precise value-for-money assessment or compare the pricing to industry benchmarks for specific engineering disciplines.

What is the track record of Harbor Offshore, Inc. with federal contracts, particularly with the Department of the Navy?

Harbor Offshore, Inc. has been awarded this specific contract by the Department of the Navy. The data indicates this is a sole-source award valued at over $15 million. Further investigation into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to ascertain the company's broader history with federal agencies, including the number and types of previous contracts, their performance history, and any past issues or accolades. This information is crucial for assessing the contractor's reliability and past performance.

How does this contract's value compare to other engineering services contracts awarded by the Department of the Navy?

The $15.2 million award to Harbor Offshore, Inc. for engineering technical services is a significant sum. To benchmark this value, one would need to compare it against similar contracts awarded by the Department of the Navy or other Department of Defense agencies for comparable engineering services. Factors such as contract duration, scope complexity, and geographic location would need to be considered. Without access to a broader dataset of comparable contracts, it's challenging to definitively state whether this represents a fair market price or an outlier.

What are the potential risks associated with a sole-source award for engineering services?

The primary risk associated with a sole-source award is the potential lack of competitive pricing, which could lead to the government paying more than necessary. It also reduces the incentive for innovation and efficiency that competition often drives. Furthermore, it limits the government's ability to explore alternative solutions or contractors that might offer better value or specialized expertise. Without a competitive process, there's also a reduced assurance that the selected contractor is the most capable or cost-effective option available.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4350 TRANSPORT STREET, SUI, VENTURA, CA, 24

Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline