Department of Defense awards $21.2M contract for dredge repowering to Signal Ship Repair, LLC

Contract Overview

Contract Amount: $21,197,589 ($21.2M)

Contractor: Signal Ship Repair, LLC

Awarding Agency: Department of Defense

Start Date: 2012-02-01

End Date: 2013-08-29

Contract Duration: 575 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2620 - DREDGE WHEELER REPOWERING

Place of Performance

Location: MOBILE, MOBILE County, ALABAMA, 36603

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to SIGNAL SHIP REPAIR, LLC for work described as: 2620 - DREDGE WHEELER REPOWERING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The award was made to a single contractor, Signal Ship Repair, LLC. 4. The contract duration is 575 days, indicating a medium-term project. 5. The contract is for ship building and repairing services. 6. The contract was awarded in Alabama, potentially impacting the local shipbuilding and repair sector.

Value Assessment

Rating: fair

The total award amount of $21.2 million for a dredge repowering project appears to be a significant investment. Without specific details on the scope of work, the condition of the dredge, and the complexity of the repowering, it is difficult to benchmark the value for money definitively. However, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price, which can provide cost certainty. Further analysis would require comparing this cost to similar repowering projects of comparable vessels and assessing the contractor's historical performance on similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were 3 bids received suggests a moderate level of competition for this specific contract. While 3 bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of multiple bidders suggests that taxpayer funds are being utilized in a process designed to secure the best value.

Public Impact

The primary beneficiaries are likely the U.S. Army Corps of Engineers, which operates and maintains dredging vessels. The services delivered involve the repowering of a dredge, a critical component for its operational capability. The geographic impact is centered in Alabama, where the contractor, Signal Ship Repair, LLC, is located, potentially creating or sustaining jobs in the region. The contract supports the maritime industrial base, particularly in shipbuilding and repair, contributing to the skilled workforce in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work was not fully defined, despite the firm-fixed-price structure.
Dependence on a single contractor for the successful completion of a critical repowering project.
Risk associated with the contractor's capacity to handle this project alongside other potential contracts.
The specific nature of 'repowering' can involve unforeseen technical challenges that may impact schedule or cost, even with fixed pricing.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, providing budget certainty for the government.
Awarded through full and open competition, indicating an effort to obtain competitive pricing.
The contract is for a specific, defined service (dredge repowering), suggesting a clear objective.
The contractor is based in Alabama, potentially leveraging regional expertise and supporting the local economy.

Sector Analysis

The shipbuilding and repair industry is a vital component of the U.S. industrial base, supporting both commercial and defense needs. This contract falls within the Ship Building and Repairing sector (NAICS 336611). The market for vessel maintenance, repair, and overhaul is substantial, with significant government spending directed towards maintaining naval fleets and specialized vessels like dredges. Comparable spending benchmarks would involve analyzing the costs of similar repowering projects for vessels of comparable size and complexity, as well as the general cost of labor and materials in the maritime repair sector.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The data indicates that the prime contractor is Signal Ship Repair, LLC. There is no explicit information regarding subcontracting plans for small businesses within this award. Further investigation into the contractor's subcontracting history and policies would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Ship Repair Contracts
Army Corps of Engineers Vessel Maintenance
Maritime Vessel Repowering Projects
Shipbuilding and Repair Industry Contracts

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Contractor performance risk on complex repowering projects.
Market concentration in specialized maritime repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to SIGNAL SHIP REPAIR, LLC. 2620 - DREDGE WHEELER REPOWERING

Who is the contractor on this award?

The obligated recipient is SIGNAL SHIP REPAIR, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2012-02-01. End: 2013-08-29.

What is the specific scope of work for the dredge repowering, and what components are being replaced or upgraded?

The provided data does not detail the specific scope of work for the dredge repowering. A 'repowering' typically involves replacing the main propulsion engines and associated systems, such as generators, exhaust systems, and potentially control systems, with newer, more efficient, or more powerful units. The exact components would depend on the age and condition of the dredge, as well as the operational requirements it needs to meet post-repowering. Understanding these specifics is crucial for evaluating the value for money and assessing potential risks associated with the project's complexity.

How does the $21.2 million award compare to the cost of similar dredge repowering projects?

Benchmarking the $21.2 million award against similar dredge repowering projects requires access to data on comparable contracts. Factors influencing cost include the size and type of the dredge, the complexity of the repowering (e.g., engine replacement only vs. full system overhaul), the specific components chosen, and the labor rates in the geographic location of the repair. Without a database of similar projects with detailed cost breakdowns, a precise comparison is challenging. However, for a significant repowering of a large vessel, $21.2 million could be within a reasonable range, assuming a comprehensive scope of work.

What is Signal Ship Repair, LLC's track record with similar government contracts, particularly in vessel repowering?

The provided data identifies Signal Ship Repair, LLC as the contractor but does not offer details on their specific track record with government contracts, especially concerning vessel repowering. A thorough assessment would involve reviewing their past performance evaluations, the types and values of previous contracts they have successfully completed, and any history of contract modifications, disputes, or terminations. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be essential to gauge their reliability and expertise in this specialized area.

What are the potential risks associated with a firm-fixed-price contract for a complex project like dredge repowering?

While firm-fixed-price (FFP) contracts are generally favored for cost certainty, they carry inherent risks for complex projects like dredge repowering. If the initial scope of work is not meticulously defined, the contractor may encounter unforeseen issues during the repowering process. In an FFP scenario, the contractor is obligated to complete the work for the agreed price, which could lead to them absorbing unexpected costs, potentially impacting their financial stability or leading to disputes over scope changes. Conversely, if the government did not adequately define requirements, they might receive a less comprehensive solution than intended.

How has historical spending on dredge maintenance and repowering by the Department of the Army trended over the past five years?

The provided data focuses on a single contract award and does not offer historical spending trends for dredge maintenance and repowering by the Department of the Army. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for all contracts related to 'dredge maintenance,' 'dredge repair,' and 'dredge repowering' awarded by the Army over a specified period. This would reveal the total obligated amounts, the number of contracts awarded, and potentially identify trends in spending levels, average contract values, and the types of services procured.

What is the significance of the contract being awarded in Alabama, and what is the local impact?

The award to Signal Ship Repair, LLC, located in Alabama, suggests that the work will likely be performed at their facilities in the state. This has several potential local impacts: job creation or retention for skilled maritime workers (welders, electricians, pipefitters, engineers), increased business for local suppliers of materials and services, and a boost to the regional economy. Alabama has a significant maritime industry presence, and contracts like this support the state's role in shipbuilding and repair.

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: W912BU12B0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Signal International Inc. (UEI: 015116673)

Address: 601 S ROYAL ST, MOBILE, AL, 36603

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,197,589

Exercised Options: $21,197,589

Current Obligation: $21,197,589

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,578,590

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline