DoD awards $2.5M for shipboard technical services, with installation at Norfolk Naval Base

Contract Overview

Contract Amount: $2,513,651 ($2.5M)

Contractor: Amee BAY, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-23

End Date: 2026-09-30

Contract Duration: 890 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE TECHNICAL SERVICES TO COMPLETELY INSTALL SCDS 22735, 22737 AND 22738 ON THE USS MESA VERDE (LPD 19). THE LOCATION FOR INSTALLATION SERVICES IS THE NAVAL BASE, NORFOLK, VA.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to AMEE BAY, LLC for work described as: THE CONTRACTOR SHALL PROVIDE TECHNICAL SERVICES TO COMPLETELY INSTALL SCDS 22735, 22737 AND 22738 ON THE USS MESA VERDE (LPD 19). THE LOCATION FOR INSTALLATION SERVICES IS THE NAVAL BASE, NORFOLK, VA. Key points: 1. Contract focuses on technical services for specific shipboard systems (SCDS). 2. Installation services are geographically concentrated in Norfolk, VA. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost uncertainty. 4. The award was made under full and open competition. 5. The contractor, AMEE BAY, LLC, will perform work over approximately 3 years. 6. This award represents a small portion of the broader shipbuilding and repair sector spending.

Value Assessment

Rating: fair

The contract value of $2.51 million for technical services and installation of specific shipboard systems appears reasonable given the scope. However, without detailed breakdowns of labor hours, rates, and material costs, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to costs exceeding initial estimates if not managed closely. Benchmarking against similar system installations on other vessels would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The U.S. Navy benefits from the installation of critical shipboard systems, enhancing vessel operational capabilities. Technical services ensure the proper functioning and integration of SCDS 22735, 22737, and 22738. The geographic impact is localized to Norfolk, Virginia, supporting naval operations at the base. The contract supports skilled technical labor in the maritime services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces potential for cost overruns if not rigorously managed.
Limited public information on specific technical requirements and performance metrics makes independent assessment difficult.
Concentration of services at a single location could pose risks if unforeseen issues arise.
The duration of the contract (nearly 3 years) requires sustained oversight to ensure performance.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contractor, AMEE BAY, LLC, is tasked with critical system installations for a naval vessel.
The contract specifies a clear delivery order for installation services.
The contract is for a defined period, allowing for focused execution and oversight.

Sector Analysis

This contract falls within the broader shipbuilding and repair industry, a significant sector for national defense and maritime infrastructure. The market involves specialized technical services for naval vessels, requiring expertise in system integration and installation. Spending in this area is often driven by fleet modernization, maintenance, and upgrade programs. Comparable spending benchmarks would typically involve contracts for similar system installations or technical support on other naval platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. Further analysis would be needed to determine if AMEE BAY, LLC has small business subcontracting plans or if the nature of the services inherently involves small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, likely through contracting officers and technical representatives. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and demonstrate progress towards fixed fee milestones. Transparency is generally limited for specific technical contracts, but contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance and Repair
Shipbuilding and Repair Contracts
Defense Technical Services
Naval Vessel Modernization
Shipboard Systems Installation

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Limited public detail on specific technical requirements and performance metrics.
Potential for integration challenges with existing shipboard systems.
Dependence on ship availability for installation activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to AMEE BAY, LLC. THE CONTRACTOR SHALL PROVIDE TECHNICAL SERVICES TO COMPLETELY INSTALL SCDS 22735, 22737 AND 22738 ON THE USS MESA VERDE (LPD 19). THE LOCATION FOR INSTALLATION SERVICES IS THE NAVAL BASE, NORFOLK, VA.

Who is the contractor on this award?

The obligated recipient is AMEE BAY, 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 $2.5 million.

What is the period of performance?

Start: 2024-04-23. End: 2026-09-30.

What is the track record of AMEE BAY, LLC in performing similar technical installation services for the Department of Defense?

Assessing the track record of AMEE BAY, LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards related to technical services, system installations, and naval vessel support. Key indicators to look for include successful completion of prior contracts, any documented performance issues or disputes, and client feedback (if available through performance evaluations). A history of successful, on-time, and within-budget performance on comparable projects would indicate a lower risk for this current contract. Conversely, a pattern of delays, cost overruns, or quality issues on past work would raise concerns about their capability to execute this delivery order effectively.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar technical services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, such as in research and development or complex technical installations. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen technical challenges, but it shifts more cost risk to the government. Fixed-Price Incentive (FPI) contracts offer a middle ground, sharing cost savings and overruns between the government and contractor. For routine technical installations with well-defined scopes, FFP is often preferred for its cost certainty. The choice of CPFF here suggests the Navy anticipated potential complexities in installing these specific SCDS systems, but it necessitates robust government oversight to manage costs effectively and ensure value.

What are the specific risks associated with installing SCDS 22735, 22737, and 22738 on the USS MESA VERDE (LPD 19)?

The specific risks associated with installing SCDS 22735, 22737, and 22738 on the USS MESA VERDE (LPD 19) are not detailed in the provided data. However, general risks in such installations can include technical integration challenges with existing ship systems, potential for damage to sensitive equipment during installation, unforeseen structural modifications required, and delays due to ship operational schedules. The CPFF contract type suggests the government acknowledges some level of cost uncertainty, which could stem from these potential technical or logistical risks. A thorough risk assessment by the Navy would have identified these potential issues and informed the contract type selection and oversight plan.

What is the historical spending pattern for technical services related to SCDS systems or similar installations on LPD-class ships?

Historical spending patterns for technical services related to SCDS systems or similar installations on LPD-class ships are not provided in the current data. To establish such a pattern, one would need to analyze past contracts awarded by the Department of the Navy for the installation, maintenance, or upgrade of these or comparable systems on LPD-class vessels. This analysis would involve identifying the total value of these contracts over several fiscal years, the types of services procured, the contractors involved, and the contract types used. Understanding historical spending can help benchmark the current $2.51 million award against previous investments, identify trends in costs, and assess whether current spending aligns with historical norms or represents a significant deviation.

How does the duration of the contract (890 days) align with the complexity of the installation tasks?

The contract duration of 890 days (approximately 2.5 years) for the installation of SCDS 22735, 22737, and 22738 on the USS MESA VERDE (LPD 19) needs to be evaluated against the complexity of the tasks. While the data doesn't detail the specific complexity, installations of sophisticated electronic or mechanical systems on naval vessels can be intricate and time-consuming due to factors like integration with existing infrastructure, space constraints, and the need to minimize disruption to the ship's operational readiness. A duration of this length suggests that the tasks are substantial, potentially involving multiple phases, testing, and integration efforts. It allows for a methodical approach but also requires sustained oversight to ensure progress and prevent schedule slippage.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6449824Q3065

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amee BAY LLC

Address: 2702 DENALI ST STE 104, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,513,651

Exercised Options: $2,513,651

Current Obligation: $2,513,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6449821D4023

IDV Type: IDC

Timeline