DoD's $38M Pacific Fleet Berthing Barge Contract with Chae and Nam Universe Inc. Faces Scrutiny
Contract Overview
Contract Amount: $38,054,558 ($38.1M)
Contractor: Chae and NAM Universe Inc.
Awarding Agency: Department of Defense
Start Date: 2014-05-12
End Date: 2019-05-13
Contract Duration: 1,827 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF - O-LEVEL MAINTENANCE AND REPAIRS, SERVICE CALL REPAIRS AND OPERATIONAL SUPPORT SERVICES FOR THE COMMANDER, PACIFIC FLEET (COMPACFLT) BERTHING AND MESSING BARGE PROGRAM
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $38.1 million to CHAE AND NAM UNIVERSE INC. for work described as: IGF::CT::IGF - O-LEVEL MAINTENANCE AND REPAIRS, SERVICE CALL REPAIRS AND OPERATIONAL SUPPORT SERVICES FOR THE COMMANDER, PACIFIC FLEET (COMPACFLT) BERTHING AND MESSING BARGE PROGRAM Key points: 1. The contract awarded to Chae and Nam Universe Inc. for berthing barge services represents a significant investment in naval infrastructure. 2. Competition was limited due to an exclusion of sources, raising questions about price discovery and potential value. 3. The firm fixed-price contract type aims to control costs, but the lack of broad competition introduces risk. 4. Spending in the Ship Building and Repairing sector can be substantial, making efficient procurement crucial.
Value Assessment
Rating: questionable
The contract's value of $38 million over five years for berthing and messing barge services needs careful comparison. Without clear benchmarks for similar operational support contracts, assessing its pricing efficiency is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard procurement approach. This limited competition likely impacted the government's ability to secure the most competitive pricing.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $38 million expenditure.
Public Impact
Sailors in the Pacific Fleet will continue to receive essential berthing and messing services. The contract supports critical naval operations and personnel welfare in a key strategic region. The procurement method may set a precedent for future service contracts, impacting overall DoD spending efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Exclusion of sources
- Lack of clear benchmarks for value assessment
Positive Signals
- Firm fixed-price contract type
- Supports critical naval operations
Sector Analysis
The Ship Building and Repairing sector, particularly for naval infrastructure, involves complex and often high-value contracts. Benchmarks for operational support services like berthing and messing barges are essential for ensuring cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses had an opportunity to compete or if subcontracting opportunities exist.
Oversight & Accountability
The 'exclusion of sources' clause warrants further oversight to ensure it was justified and that the procurement process remained fair and transparent, despite the limited competition.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises value concerns.
- Justification for source exclusion needs review.
- Potential for higher-than-market pricing.
- Lack of small business participation noted.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to CHAE AND NAM UNIVERSE INC.. IGF::CT::IGF - O-LEVEL MAINTENANCE AND REPAIRS, SERVICE CALL REPAIRS AND OPERATIONAL SUPPORT SERVICES FOR THE COMMANDER, PACIFIC FLEET (COMPACFLT) BERTHING AND MESSING BARGE PROGRAM
Who is the contractor on this award?
The obligated recipient is CHAE AND NAM UNIVERSE 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 $38.1 million.
What is the period of performance?
Start: 2014-05-12. End: 2019-05-13.
What was the specific justification for excluding other potential sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding other sources is critical for understanding the procurement's integrity. Without this information, it's impossible to assess if the exclusion was legitimate, such as due to unique capabilities or national security concerns, or if it potentially limited competition unnecessarily and impacted price discovery.
How does the per-unit cost of services compare to similar contracts awarded under full and open competition?
A direct comparison of per-unit costs against similar contracts awarded through full and open competition is essential for a robust value assessment. If this contract's pricing is significantly higher, it suggests that the limited competition may have led to a less favorable outcome for taxpayers.
What mechanisms are in place to ensure the quality and effectiveness of services provided under this contract, given the limited competitive landscape?
Given the limited competition, robust quality assurance and performance monitoring are paramount. The Department of the Navy must have stringent oversight mechanisms to ensure Chae and Nam Universe Inc. delivers effective services that meet all contractual requirements and operational needs.
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: N5523614R0002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1429 WILSON AVE, NATIONAL CITY, CA, 91950
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,054,558
Exercised Options: $38,054,558
Current Obligation: $38,054,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-05-12
Current End Date: 2019-05-13
Potential End Date: 2019-05-13 00:00:00
Last Modified: 2020-09-03
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