Navy Awards $25.8M Contract for Ex-USS Paul Foster Overhaul to Cascade General, LLC
Contract Overview
Contract Amount: $25,827,448 ($25.8M)
Contractor: Cascade General, LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-08
End Date: 2012-09-05
Contract Duration: 272 days
Daily Burn Rate: $95.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PREPARE FOR AND ACCOMPLISH THE OVERHAUL AND DRYDOCKING OF THE EX-USS PAUL FOSTER (EDD-964).
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217, UNITED STATES OF AMERICA
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to CASCADE GENERAL, LLC for work described as: PREPARE FOR AND ACCOMPLISH THE OVERHAUL AND DRYDOCKING OF THE EX-USS PAUL FOSTER (EDD-964). Key points: 1. The contract focuses on ship repair and maintenance, a critical but often costly sector. 2. Cascade General, LLC, a known entity in shipbuilding, secured this award. 3. The firm fixed price contract type aims to control costs, but potential risks in complex overhauls remain. 4. This expenditure falls within the broader shipbuilding and repair industry, which sees significant federal investment.
Value Assessment
Rating: good
The contract value of $25.8 million for a ship overhaul and drydocking appears reasonable given the scope. Benchmarking against similar complex naval vessel maintenance contracts would provide a more precise assessment, but the fixed-price nature suggests an effort to establish clear cost expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices by allowing multiple qualified contractors to submit proposals, fostering price discovery.
Taxpayer Impact: Taxpayer funds are utilized for maintaining naval assets, ensuring readiness. The competitive award process aims to maximize the value received for this investment.
Public Impact
Ensures readiness of naval assets through essential maintenance. Supports jobs in the shipbuilding and repair sector. Demonstrates federal commitment to maintaining its fleet. Potential for cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Scope creep in complex overhauls
- Potential for unforeseen repair needs impacting final cost
- Contract duration may be tight for extensive work
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Awarded to an established ship repair company
Sector Analysis
The shipbuilding and repair sector is capital-intensive and requires specialized facilities and expertise. Federal spending in this area is crucial for national defense and maritime security, with contracts often being large and complex.
Small Business Impact
While the primary awardee is Cascade General, LLC, the extent of subcontracting to small businesses is not detailed in this data. Federal contracts often include provisions for small business participation, which would need further investigation.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for unforeseen repair needs
- Contract duration may be challenging for extensive work
- Reliance on a single prime contractor for complex tasks
- Limited visibility into small business subcontracting
Tags
ship-building-and-repairing, department-of-defense, or, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to CASCADE GENERAL, LLC. PREPARE FOR AND ACCOMPLISH THE OVERHAUL AND DRYDOCKING OF THE EX-USS PAUL FOSTER (EDD-964).
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 $25.8 million.
What is the period of performance?
Start: 2011-12-08. End: 2012-09-05.
What specific maintenance and repair tasks are included in the overhaul, and how were they estimated to arrive at the $25.8 million figure?
The specific tasks would typically be detailed in the Statement of Work (SOW) attached to the contract. These would likely include hull inspection and repair, machinery maintenance, system upgrades, and safety checks. The cost estimate would be derived from labor hours, material costs, overhead, and profit margins, based on the contractor's detailed proposal and the government's independent cost estimate.
What are the primary risks associated with a ship overhaul of this nature, and what mitigation strategies are in place?
Key risks include unforeseen structural damage discovered during drydocking, potential delays due to parts availability or labor shortages, and scope creep if additional work is identified. Mitigation strategies often involve detailed pre-award inspections, robust contract language allowing for equitable adjustments for unforeseen conditions, and close project management by the contracting officer's representative (COR).
How does the firm fixed price contract type ensure effectiveness and value for money in this specific overhaul?
A firm fixed price (FFP) contract establishes a ceiling price, incentivizing the contractor to control costs and work efficiently to maximize profit. This provides cost certainty for the government. Effectiveness is ensured through clear performance standards in the SOW and quality assurance surveillance by the Navy. Value for money is pursued through the competitive bidding process and the contractor's drive to complete the work within the agreed-upon price.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N5523611R0003
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, 97217
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,080,139
Exercised Options: $25,827,448
Current Obligation: $25,827,448
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-12-08
Current End Date: 2012-09-05
Potential End Date: 2012-09-05 00:00:00
Last Modified: 2016-08-25
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