DoD awards $9.6M contract for SPUD BARGE to Conrad Shipyard, L.L.C., with a 795-day duration

Contract Overview

Contract Amount: $9,614,713 ($9.6M)

Contractor: Conrad Shipyard, L.L.C

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2025-11-21

Contract Duration: 795 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPUD BARGE

Place of Performance

Location: MORGAN CITY, SAINT MARY County, LOUISIANA, 70380

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $9.6 million to CONRAD SHIPYARD, L.L.C for work described as: SPUD BARGE Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The definitive contract type suggests a long-term agreement with potential for follow-on orders. 3. Fixed-price contract structure shifts risk to the contractor, potentially stabilizing costs. 4. The contract duration of 795 days points to a significant project requiring substantial resources. 5. The North American Industry Classification System (NAICS) code 336611 signifies shipbuilding and repair activities. 6. The base award amount of $1.2M suggests initial funding, with the total contract value reaching over $9.6M.

Value Assessment

Rating: good

The contract value of $9.6M for a SPUD BARGE appears reasonable given the scope of shipbuilding and repair. Benchmarking against similar, large-scale maritime construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator for cost control, assuming the contractor has accurately estimated all associated expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be broad, certain sources were excluded, possibly due to specific technical requirements, past performance, or other pre-qualification criteria. The exact number of bidders is not provided, but the 'exclusion of sources' implies a more curated competition than a purely open solicitation.

Taxpayer Impact: This procurement method, while not fully open, aims to ensure fair pricing by allowing multiple qualified bidders to compete. The exclusion of certain sources could potentially limit the lowest price achievable, but it also ensures that the selected contractor meets specific, potentially critical, requirements for the taxpayer.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Department of the Army) through the acquisition of essential maritime assets. The contract will result in the delivery of a SPUD BARGE, a specialized vessel used in marine construction and dredging operations. The geographic impact is centered in Louisiana, where Conrad Shipyard, L.L.C. is located, potentially creating or sustaining local jobs. The contract supports the maritime industrial base, contributing to the skilled workforce in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during construction, despite the fixed-price nature.
Dependence on Conrad Shipyard's capacity and timely delivery, as they are the sole awardee.
The 'exclusion of sources' could limit the pool of potential competitors, potentially impacting price competitiveness.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Conrad Shipyard's established presence in the shipbuilding industry suggests a degree of reliability.
The definitive contract type may indicate a strategic, long-term relationship beneficial for future needs.

Sector Analysis

The shipbuilding and repair sector (NAICS 336611) is a critical component of the defense industrial base, supporting naval operations and maritime infrastructure. This contract for a SPUD BARGE fits within the broader category of specialized vessel construction. The market is characterized by high barriers to entry due to capital requirements and specialized expertise. Comparable spending benchmarks would involve analyzing other government contracts for similar specialized marine equipment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, Conrad Shipyard, L.L.C., is likely a large business, and the contract's direct impact on the small business ecosystem may be limited unless significant subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of the specified SPUD BARGE. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval shipbuilding and repair programs
Army Corps of Engineers marine construction contracts
Defense logistics and support vessels
Maritime infrastructure development

Risk Flags

Potential for schedule delays
Risk of cost increases if scope changes
Dependence on single contractor's capacity
Limited competition due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.6 million to CONRAD SHIPYARD, L.L.C. SPUD BARGE

Who is the contractor on this award?

The obligated recipient is CONRAD SHIPYARD, L.L.C.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2023-09-18. End: 2025-11-21.

What is Conrad Shipyard, L.L.C.'s track record with the Department of Defense for similar maritime contracts?

A review of Conrad Shipyard, L.L.C.'s contract history with the Department of Defense reveals a pattern of involvement in shipbuilding and repair services. While specific details on past SPUD BARGE contracts are not immediately available in this summary, the company has a history of performing work on various vessels for government entities. Analyzing their past performance metrics, on-time delivery rates, and any documented disputes or contract modifications would provide a clearer picture of their reliability for this specific award. Their established presence in Louisiana's maritime industry suggests significant experience, but a deeper dive into their DoD-specific performance is crucial for a comprehensive risk assessment.

How does the $9.6M contract value compare to market rates for a SPUD BARGE of similar specifications?

Determining the precise market rate for a SPUD BARGE is complex due to variations in size, capabilities, and customization. However, the $9.6M total contract value, spread over approximately two years, suggests a significant investment. General industry knowledge indicates that specialized marine construction equipment like SPUD BARGES can range from several million to tens of millions of dollars depending on their specifications. Without detailed technical requirements of this specific barge, a direct comparison is challenging. However, the firm fixed-price nature of the contract implies the government has secured a defined cost for a specific deliverable, which is a positive sign for value, assuming the scope was well-defined and competitive bidding occurred.

What are the primary risks associated with this definitive contract award?

The primary risks associated with this definitive contract include potential delays in construction, which could impact the Army's operational readiness. Despite the firm fixed-price structure, unforeseen technical challenges or supply chain disruptions could lead to cost pressures for the contractor, potentially impacting quality or schedule. The 'exclusion of sources' procurement method, while ensuring specific capabilities, might have limited the competitive landscape, potentially leading to a less optimal price than a fully open competition. Furthermore, the long duration of the contract (795 days) increases the exposure to market fluctuations and potential changes in requirements.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring best value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with the need for specific capabilities. It allows multiple bidders to participate but narrows the field based on pre-defined criteria. This can be effective in ensuring that the awarded contractor possesses the necessary technical expertise and capacity, thereby reducing the risk of performance failures. However, if the exclusion criteria are overly restrictive or not well-justified, it could limit the number of potential bidders, potentially reducing price competition and leading to a higher cost for taxpayers compared to a truly open solicitation. The effectiveness hinges on the justification for exclusions and the rigor of the evaluation process.

What is the historical spending pattern for SPUD BARGE acquisition or similar maritime assets by the Department of Defense?

Historical spending patterns for SPUD BARGE acquisition by the Department of Defense are not readily available in aggregate public data. However, the DoD does procure various specialized marine vessels and equipment for its operations, including those managed by the Army Corps of Engineers for civil works and military support. Spending in this category can fluctuate significantly based on infrastructure needs, fleet modernization, and specific project requirements. Analyzing past solicitations and awards for similar vessels, such as dredges, barges, or specialized construction craft, would provide context. The $9.6M award for this single SPUD BARGE suggests a substantial investment for a specific, likely critical, asset.

What are the implications of the 795-day contract duration on project management and oversight?

The 795-day duration (over two years) for this SPUD BARGE contract necessitates robust project management and sustained oversight. This extended timeline requires continuous monitoring of the contractor's progress against milestones, quality control throughout the construction phases, and proactive risk management to address potential issues that may arise over such a long period. The Department of the Army will need dedicated personnel to oversee the contract, ensuring adherence to specifications, managing any contract modifications, and verifying timely delivery. The long duration also increases the potential for scope creep or requirement changes, making clear communication and change control processes critical.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912BU23B0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Conrad Industries, Inc.

Address: 1501 FRONT ST, MORGAN CITY, LA, 70380

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,614,713

Exercised Options: $9,614,713

Current Obligation: $9,614,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline