Navy's $31.6M Patrol Boat Training Program Awarded to Swiftships Without Competition

Contract Overview

Contract Amount: $31,632,390 ($31.6M)

Contractor: Swiftships Shipbuilders, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2013-05-31

Contract Duration: 1,339 days

Daily Burn Rate: $23.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IRAQI NAVY 35M PATROL BOAT TRNG PGM

Place of Performance

Location: MORGAN CITY, ST. MARY County, LOUISIANA, 70381

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to SWIFTSHIPS SHIPBUILDERS, L.L.C. for work described as: IRAQI NAVY 35M PATROL BOAT TRNG PGM Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined cost for the services. 2. The duration of the contract was over three years, suggesting a substantial training requirement. 3. The training program was designated for the Iraqi Navy, highlighting an international security cooperation aspect. 4. The absence of competition raises questions about potential cost efficiencies and market-based pricing. 5. The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code. 6. The award was made by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: questionable

Benchmarking the value of this $31.6 million training program is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if the price reflects fair market value or if alternative, more cost-effective solutions were available. The firm-fixed-price contract type suggests cost certainty for the government, but the lack of competition prevents a direct comparison to similar training programs or market rates for patrol boat operations and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Swiftships Shipbuilders, L.L.C., was solicited. The justification for a sole-source award typically involves unique capabilities or circumstances. Without a competitive process, it is not possible to determine the number of potential bidders or the range of pricing that might have emerged in a more open market.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competition among multiple vendors.

Public Impact

The primary beneficiaries of this contract are the Iraqi Navy personnel who receive specialized training. The services delivered include training related to the operation and maintenance of patrol boats. The geographic impact is primarily focused on Iraq, supporting the development of its naval capabilities. The contract has implications for the Iraqi Navy's operational readiness and maritime security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than could have been achieved through a competitive process.
Sole-source awards can limit opportunities for other qualified contractors to participate and demonstrate their capabilities.
Transparency in the justification for the sole-source award is crucial for public trust and accountability.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government, mitigating the risk of cost overruns.
The training program aims to enhance the operational capabilities of the Iraqi Navy, contributing to regional security.
The contract duration of over three years suggests a comprehensive and sustained training effort.

Sector Analysis

The defense sector, particularly international security cooperation and foreign military sales, often involves specialized training and equipment. This contract for patrol boat training for the Iraqi Navy fits within this context. While specific market size data for this niche training is not readily available, the broader market for defense training services is substantial, with numerous providers offering specialized capabilities. This contract represents a specific instance of U.S. support for building partner capacity in maritime security.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a specific company, it is unlikely to have directly benefited the small business ecosystem through subcontracting unless Swiftships Shipbuilders, L.L.C. voluntarily engaged small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance requirements outlined in the contract. Transparency regarding the sole-source justification and the contract's execution is important, though specific details on public reporting or Inspector General involvement are not provided in the data.

Related Government Programs

Foreign Military Sales Program
International Security Assistance
Naval Training Programs
Maritime Security Initiatives

Risk Flags

Sole-source award
Lack of competition
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to SWIFTSHIPS SHIPBUILDERS, L.L.C.. IRAQI NAVY 35M PATROL BOAT TRNG PGM

Who is the contractor on this award?

The obligated recipient is SWIFTSHIPS SHIPBUILDERS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-05-31.

What specific capabilities does Swiftships Shipbuilders, L.L.C. possess that justified a sole-source award for this training program?

The provided data does not detail the specific capabilities of Swiftships Shipbuilders, L.L.C. that led to the sole-source justification. Typically, sole-source awards are granted when a contractor possesses unique capabilities, proprietary technology, or when urgent and compelling circumstances prevent a competitive solicitation. Without further documentation or justification from the Department of the Navy, it is impossible to ascertain the precise reasons for awarding this contract without competition. This lack of transparency can raise concerns about whether the government explored all available options to ensure the best value was obtained.

How does the $31.6 million cost compare to similar patrol boat training programs for foreign navies?

Direct comparison of the $31.6 million cost to similar programs is difficult without more specific details on the scope, duration, and complexity of the training provided. Furthermore, the sole-source nature of this award means it was not subjected to competitive bidding, which typically drives down prices. Benchmarking against other foreign military training contracts would require access to data on comparable programs, including the number of personnel trained, the types of vessels involved, and the specific training modules delivered. The absence of competitive pricing makes it challenging to assess if this contract represents good value for money.

What are the potential risks associated with awarding a significant training contract on a sole-source basis?

The primary risk associated with sole-source awards is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may pay a premium. Another risk is the missed opportunity to discover innovative solutions or more cost-effective approaches that might have been offered by other qualified contractors. Furthermore, sole-source awards can sometimes lead to perceptions of favoritism or a lack of due diligence in ensuring the best use of taxpayer funds, potentially impacting public trust and accountability.

What was the intended outcome or effectiveness measure for this Iraqi Navy patrol boat training program?

The provided data does not specify the intended outcomes or effectiveness measures for the Iraqi Navy patrol boat training program. Typically, such programs aim to enhance the operational readiness, maintenance capabilities, and overall effectiveness of the recipient navy's maritime forces. Success would likely be measured by the Iraqi Navy's ability to independently operate and maintain its patrol boats, conduct maritime patrols, and contribute to national security objectives. Without defined metrics, assessing the program's ultimate success is not possible from the given information.

What is the historical spending pattern for patrol boat training programs by the Department of the Navy, particularly for international partners?

The provided data focuses on a single contract and does not offer historical spending patterns for patrol boat training programs by the Department of the Navy, either domestically or internationally. To analyze historical spending, one would need to examine contract databases for similar procurements over several fiscal years, identifying trends in contract values, types of services, and the number of competitive versus sole-source awards. This would help contextualize the $31.6 million award within a broader spending landscape and identify any significant shifts or patterns.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1105 LEVEE RD, MORGAN CITY, LA, 03

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,328,030

Exercised Options: $31,632,390

Current Obligation: $31,632,390

Contract Characteristics

Cost or Pricing Data: YES

Timeline