Army Awards $12.3M for 4 Revetment Barges to Southwest Shipyard Under Full and Open Competition

Contract Overview

Contract Amount: $12,292,904 ($12.3M)

Contractor: Southwest Shipyard LP

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-08-13

Contract Duration: 685 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOUR (4) REVETMENT BARGES

Place of Performance

Location: CHANNELVIEW, HARRIS County, TEXAS, 77530

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to SOUTHWEST SHIPYARD LP for work described as: FOUR (4) REVETMENT BARGES Key points: 1. Significant investment in critical maritime infrastructure. 2. Southwest Shipyard LP, a known entity in shipbuilding, secured the contract. 3. Full and open competition, despite initial source exclusion, suggests a robust price discovery process. 4. The contract supports the shipbuilding and repair sector, particularly in Texas.

Value Assessment

Rating: good

The contract value of $12.3 million for four barges appears reasonable given the specialized nature of revetment barges and the firm fixed-price structure. Benchmarking against similar, though potentially less complex, maritime construction projects suggests this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while specific sources may have been initially considered or excluded, the final award was made through a competitive process open to all eligible bidders. This method generally promotes competitive pricing.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, ensuring taxpayer funds are used efficiently for essential defense assets.

Public Impact

Enhances Army Corps of Engineers' capabilities for riverine operations and infrastructure maintenance. Supports domestic shipbuilding industry and associated jobs. Ensures readiness for critical infrastructure projects along waterways. Potential for long-term operational benefits through durable barge construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependence on a single contractor for delivery.
Scope creep risk if additional requirements are added post-award.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Awarded through a competitive process.
Clear delivery schedule and duration.

Sector Analysis

The shipbuilding and repair sector is capital-intensive and subject to cyclical demand. This contract falls within the broader defense industrial base, supporting specialized maritime construction. Spending benchmarks for similar naval or barge construction projects can vary widely based on complexity and materials.

Small Business Impact

While Southwest Shipyard LP is the prime contractor, the contract details do not specify subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation in this award.

Oversight & Accountability

The award was made by the Department of the Army, indicating oversight by a major defense agency. The firm fixed-price contract and defined delivery schedule provide clear metrics for performance monitoring and accountability.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for supply chain disruptions impacting delivery.
Contractor's past performance record needs review.
Long-term maintenance and operational costs not detailed.
Geopolitical factors affecting material costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to SOUTHWEST SHIPYARD LP. FOUR (4) REVETMENT BARGES

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 $12.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-08-13.

What specific capabilities do these revetment barges provide that justify the $12.3 million investment?

Revetment barges are specialized vessels designed for transporting and deploying large quantities of rock or other materials to reinforce riverbanks and shorelines, preventing erosion and stabilizing waterways. These capabilities are crucial for maintaining navigable channels, protecting critical infrastructure, and supporting military operations in riverine environments. The investment likely reflects the robust construction required for heavy-duty material handling and the specific engineering needs for effective erosion control.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' method for this contract?

The primary risk with this procurement method is the potential for perceived or actual limitations on competition, even if the final award is open. If key potential bidders were excluded early without clear justification, the government might not have received the most competitive offers. This could lead to a higher price than achievable through truly unrestricted competition. Transparency in the exclusion rationale is key to mitigating this risk.

How effective is a firm fixed-price contract likely to be in ensuring value for money on this shipbuilding project?

A firm fixed-price (FFP) contract is generally effective in ensuring value for money for shipbuilding projects when the scope of work is well-defined and risks are understood. It shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently. For this contract, the FFP structure provides cost certainty for the government. However, effectiveness hinges on the initial price being fair and the contractor's ability to execute without significant, unforeseen issues that could lead to claims or contract modifications.

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: W912BU24B0023

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

Financial Breakdown

Contract Ceiling: $12,292,904

Exercised Options: $12,292,904

Current Obligation: $12,292,904

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline