DoD awards $11.9M for crane barge, with 3 bidders competing under simplified acquisition procedures

Contract Overview

Contract Amount: $11,947,146 ($11.9M)

Contractor: Southwest Shipyard LP

Awarding Agency: Department of Defense

Start Date: 2022-09-21

End Date: 2025-12-15

Contract Duration: 1,181 days

Daily Burn Rate: $10.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CRANE BARGE

Place of Performance

Location: CHANNELVIEW, HARRIS County, TEXAS, 77530

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to SOUTHWEST SHIPYARD LP for work described as: CRANE BARGE Key points: 1. Contract awarded to Southwest Shipyard LP for a crane barge. 2. Competition was conducted under simplified acquisition procedures, indicating a focus on smaller value procurements. 3. The firm-fixed-price contract type suggests a defined scope and cost certainty for the government. 4. The contract duration of 1181 days spans over three years, indicating a long-term need. 5. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repair services. 6. The award was made by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: good

The contract value of $11.9 million for a crane barge appears reasonable given the specialized nature of shipbuilding and repair. Without specific details on the barge's capabilities and specifications, a direct comparison to similar contracts is challenging. However, the firm-fixed-price structure suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government. The number of bidders (3) indicates some level of market interest, but further analysis would be needed to determine if this represents optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under simplified acquisition procedures (SAP), which are typically used for procurements valued below certain thresholds (e.g., $250,000, though this can vary). The fact that there were three bidders suggests a degree of competition within this simplified process. While SAP aims for efficiency, it may not always achieve the same level of price discovery as full and open competition for larger contracts.

Taxpayer Impact: The use of simplified acquisition procedures, while efficient, means that the government may not have accessed the broadest possible range of suppliers or achieved the most aggressive pricing that might be available through larger-scale competitive processes.

Public Impact

The U.S. Army benefits from the acquisition of a specialized crane barge, likely for logistical support, construction, or maintenance operations. The services delivered fall under shipbuilding and repair, supporting naval or port infrastructure capabilities. The geographic impact is primarily within Texas, where Southwest Shipyard LP is located, and potentially at the operational sites of the U.S. Army. The contract supports jobs within the shipbuilding and repair industry, contributing to the skilled workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project complexities.
Risk of schedule delays impacting operational readiness if the barge delivery is not met.
Dependence on a single contractor for a critical piece of equipment could pose supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competition, even under SAP, suggests multiple vendors were interested and capable.
Award to an established shipyard indicates a level of confidence in their capabilities.

Sector Analysis

The shipbuilding and repair sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial maritime activities and national defense needs. This contract for a crane barge fits within the broader category of specialized marine vessel construction and repair. Comparable spending benchmarks are difficult to establish without detailed specifications, but large naval vessels or complex offshore structures would represent significantly higher spending categories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Southwest Shipyard LP's size is not provided, the nature of shipbuilding often involves larger companies. There is no explicit information on subcontracting plans, but larger contracts in this sector can sometimes include opportunities for small businesses in specialized component manufacturing or support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of the specified barge. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval shipbuilding and repair programs
Army logistics and transportation assets
Port infrastructure development
Marine construction equipment procurement

Risk Flags

Contract value significantly exceeds typical SAP thresholds, raising questions about competition scope.
Lack of detailed specifications makes independent value assessment difficult.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to SOUTHWEST SHIPYARD LP. CRANE BARGE

Who is the contractor on this award?

The obligated recipient is SOUTHWEST SHIPYARD LP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2022-09-21. End: 2025-12-15.

What are the specific capabilities and technical specifications of the crane barge being procured?

The provided data does not include the specific technical specifications or capabilities of the crane barge. This information would typically be found in the contract's statement of work or technical exhibits. Understanding these details is crucial for a comprehensive assessment of the contract's value and suitability for its intended purpose. Factors such as lifting capacity, reach, mobility, power source, and environmental operating conditions would all influence the barge's utility and cost.

How does the $11.9 million cost compare to similar crane barges procured by the government or in the commercial market?

A direct cost comparison is challenging without detailed specifications of the crane barge. However, $11.9 million for a specialized vessel like a crane barge, especially one intended for military or heavy industrial use, is within a plausible range. Commercial crane barges can vary widely in price based on size, capacity, and features. Government procurements may also include additional requirements for durability, security, or specific certifications that can increase costs compared to commercial equivalents. Further benchmarking would require access to detailed specifications and a broader market analysis.

What is the track record of Southwest Shipyard LP in delivering similar marine vessels or equipment to the Department of Defense?

The provided data does not detail Southwest Shipyard LP's specific track record with the Department of Defense or for similar crane barges. A thorough assessment would involve reviewing past performance evaluations, delivery history, and any prior contracts for comparable equipment. Companies in the shipbuilding sector often have extensive portfolios, and their experience with government contracts, adherence to schedules, and quality of work are key indicators of future performance. This information is typically available through government past performance databases.

What are the primary intended uses and operational locations for this crane barge?

The data indicates the contract is for a crane barge awarded by the Department of the Army, suggesting its use will support Army operations. Crane barges are typically employed for heavy lifting in port construction, maintenance, salvage operations, or logistical support in areas with water access. The specific operational locations are not detailed in the provided data but would likely be determined by the Army's mission requirements, potentially including domestic ports, overseas bases, or areas affected by natural disasters. The duration of the contract (over three years) implies a sustained need for these capabilities.

What is the historical spending trend for crane barges or similar marine equipment by the Department of the Army?

The provided data focuses on a single contract award and does not offer historical spending trends for crane barges or similar marine equipment by the Department of the Army. To analyze historical spending, one would need to query federal procurement databases for similar contract actions over several fiscal years, filtering by agency, product/service code, and keywords. This would reveal patterns in procurement volume, average contract values, and primary contractors, providing context for the current $11.9 million award.

How does the competition level (3 bidders) under Simplified Acquisition Procedures (SAP) impact the value for taxpayers?

While three bidders indicate some level of competition, the use of Simplified Acquisition Procedures (SAP) for a contract valued at $11.9 million (which is significantly above typical SAP thresholds) raises questions. SAP is designed for efficiency in smaller procurements. For a contract of this magnitude, a broader, full-and-open competition might have yielded more bidders and potentially more competitive pricing, leading to better value for taxpayers. The limited competition under SAP could mean taxpayers are not benefiting from the most aggressive pricing achievable in the market.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912BU22B0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18310 MARKET ST, CHANNELVIEW, TX, 77530

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,957,596

Exercised Options: $11,957,596

Current Obligation: $11,947,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline