Department of the Army awards $25.3M for deck barges, with 3 bids received

Contract Overview

Contract Amount: $25,328,547 ($25.3M)

Contractor: Basic Marine, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-18

End Date: 2011-01-21

Contract Duration: 855 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSTRUCT, TEST AND DELIVER DECK BARGES

Place of Performance

Location: ESCANABA, DELTA County, MICHIGAN, 49829

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to BASIC MARINE, INC. for work described as: CONSTRUCT, TEST AND DELIVER DECK BARGES Key points: 1. Contract awarded to Basic Marine, Inc. for construction, testing, and delivery of deck barges. 2. The contract utilized full and open competition, indicating a broad market solicitation. 3. A firm fixed-price contract type suggests predictable costs for the government. 4. The duration of the contract was 855 days. 5. The award was made by the Department of the Army. 6. The North American Industry Classification System (NAICS) code is 336611 (Ship Building and Repairing).

Value Assessment

Rating: fair

The total award amount of $25.3 million for deck barges appears to be within a reasonable range for shipbuilding projects of this nature. However, without specific details on the number, size, and specifications of the barges, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for deck barges would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. Three bids were received, which suggests a moderate level of competition for this specific requirement. While three bidders indicate some market interest, a higher number of bids could potentially lead to more aggressive pricing and a wider range of technical solutions.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to maximize the pool of potential offerors, thereby encouraging competitive pricing and potentially leading to better value.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive the deck barges for its operations. The services delivered include the construction, testing, and delivery of specialized marine vessels. The geographic impact is likely centered around the contractor's facility in Michigan and the operational areas where the barges will be deployed. The contract supports jobs within the shipbuilding and repair industry, particularly at Basic Marine, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during construction, despite the firm fixed-price structure.
Dependence on a single contractor (Basic Marine, Inc.) for the full scope of work could pose a risk if performance issues emerge.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Full and open competition generally promotes a competitive environment, potentially leading to better pricing and quality.
The contract specifies definitive contract terms, implying a clear scope of work and delivery schedule.

Sector Analysis

The shipbuilding and repair industry is a significant sector within the broader manufacturing economy, characterized by complex engineering, specialized labor, and substantial capital investment. This contract falls under NAICS code 336611, which encompasses establishments primarily engaged in building and repairing ships and other marine vessels. Spending in this sector can fluctuate based on defense needs, commercial shipping demands, and infrastructure projects. Comparable spending benchmarks would involve analyzing other government contracts for similar vessel construction or repair services.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal. However, the prime contractor may engage small businesses as suppliers or service providers in their supply chain, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval shipbuilding contracts
Amphibious assault vehicle procurement
Military logistics support vessels
Coast Guard cutter construction

Risk Flags

Potential for performance delays
Unforeseen cost increases (though mitigated by FFP)
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to BASIC MARINE, INC.. CONSTRUCT, TEST AND DELIVER DECK BARGES

Who is the contractor on this award?

The obligated recipient is BASIC MARINE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2008-09-18. End: 2011-01-21.

What is the specific type and capacity of the deck barges being procured?

The provided data does not specify the exact type, size, or carrying capacity of the deck barges being constructed. Deck barges can vary significantly in size and purpose, from small utility barges to large cargo carriers. Understanding these specifications is crucial for a comprehensive assessment of the contract's value and its suitability for the intended military operations. Further details would be found in the contract's statement of work or technical specifications.

How does the per-unit cost of these deck barges compare to market rates or similar government procurements?

A direct per-unit cost comparison is not possible with the given data, as the number of barges is not specified, nor are their individual specifications. The total award of $25.3 million for an unspecified number of barges makes a per-unit cost calculation impossible. To benchmark, one would need to know the quantity and detailed specifications of the barges and then compare the resulting unit price against industry standards for similar vessels or against historical data from other government contracts for deck barges.

What is the track record of Basic Marine, Inc. in delivering similar shipbuilding contracts for the Department of Defense?

The provided data indicates Basic Marine, Inc. was awarded this contract, but it does not detail their past performance history with the Department of Defense or for similar shipbuilding projects. A thorough assessment of contractor track record would require reviewing past performance evaluations, contract completion history, and any documented issues or successes on previous government contracts. This information is typically available through government past performance databases.

What are the primary operational uses for these deck barges within the Department of the Army?

The primary operational uses for these deck barges are not explicitly stated in the provided data. Deck barges are versatile marine vessels typically used for transporting heavy equipment, vehicles, supplies, or personnel across water bodies. Within the Department of the Army, they could be utilized for logistical support, amphibious operations, construction projects in deployed environments, or for general transportation of materiel where traditional port facilities are unavailable or insufficient.

What is the historical spending trend for deck barge construction or similar marine vessels by the Department of the Army?

The provided data focuses on a single contract award and does not offer historical spending trends for deck barge construction or similar marine vessels by the Department of the Army. To analyze historical spending, one would need to access procurement data over multiple fiscal years, identifying all contracts related to deck barges, shipbuilding, and repair. This would allow for the identification of patterns, fluctuations in spending, and the overall investment in such assets over time.

Were there any specific performance metrics or quality standards outlined in the contract that Basic Marine, Inc. had to meet?

The provided data indicates the contract type is 'FIRM FIXED PRICE' and the award was for 'CONSTRUCT, TEST AND DELIVER DECK BARGES'. While this implies adherence to certain quality standards and delivery timelines, the specific performance metrics and quality standards are not detailed. These would typically be elaborated in the contract's Statement of Work (SOW), specifications, and any incorporated quality assurance clauses. Meeting these defined standards would be critical for successful contract completion and payment.

Industry Classification

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

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU08B0019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 440 N 10TH ST, ESCANABA, MI, 49829

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Labor Surplus Area Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,328,547

Exercised Options: $25,328,547

Current Obligation: $25,328,547

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline