DoD Awards $49.7M for McMurdo Steel Deck Barge to Gunderson Marine LLC
Contract Overview
Contract Amount: $49,714,413 ($49.7M)
Contractor: Gunderson Marine LLC
Awarding Agency: Department of Defense
Start Date: 2023-11-07
End Date: 2026-07-01
Contract Duration: 967 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MCMURDO STEEL DECK BARGE
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97210
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $49.7 million to GUNDERSON MARINE LLC for work described as: MCMURDO STEEL DECK BARGE Key points: 1. Significant contract awarded to Gunderson Marine LLC for a steel deck barge. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is substantial, indicating a long-term project. 4. The sector is Ship Building and Repairing, a critical defense capability.
Value Assessment
Rating: good
The contract value of $49.7M for a steel deck barge appears reasonable given the specialized nature of shipbuilding. Benchmarking against similar large marine construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a definitive contract suggests a well-defined scope of work.
Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for this significant defense asset.
Public Impact
Enhances logistical capabilities for the Department of the Army. Supports critical shipbuilding and repair infrastructure. Potential for job creation in the shipbuilding sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (967 days) could lead to cost overruns if not managed effectively.
- Firm Fixed Price contract may not fully account for unforeseen material cost fluctuations.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Definitive Contract).
Sector Analysis
The Ship Building and Repairing sector is capital-intensive and requires specialized expertise. Defense contracts in this area often represent significant investments in national security infrastructure.
Small Business Impact
The contract was awarded to Gunderson Marine LLC, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The definitive contract structure and full and open competition suggest a degree of established oversight. Continued monitoring of performance and adherence to schedule will be crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Firm Fixed Price contract.
- No explicit small business participation noted.
- Potential for material cost volatility.
Tags
ship-building-and-repairing, department-of-defense, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.7 million to GUNDERSON MARINE LLC. MCMURDO STEEL DECK BARGE
Who is the contractor on this award?
The obligated recipient is GUNDERSON MARINE 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 $49.7 million.
What is the period of performance?
Start: 2023-11-07. End: 2026-07-01.
What is the specific operational requirement for this steel deck barge and how does it align with current DoD logistical needs?
The specific operational requirement for the McMurdo steel deck barge is not detailed in the provided data. However, steel deck barges are typically used for transporting heavy equipment, supplies, or personnel across water bodies, often in support of military operations or infrastructure projects. Its alignment with current DoD logistical needs would depend on the strategic deployment and operational tempo in regions requiring such transport capabilities, particularly in the Antarctic where McMurdo Station is located.
Are there any potential risks associated with the long contract duration and the firm fixed price structure for this shipbuilding project?
Yes, a long contract duration of 967 days for a firm fixed price shipbuilding project carries risks. Inflation and fluctuations in raw material costs (like steel) could erode contractor profit margins or lead to disputes if not adequately factored into the initial price. Conversely, if costs decrease significantly, the government might have overpaid. Effective contract management and clear change order processes are vital to mitigate these risks.
How does the cost of this barge compare to similar naval shipbuilding contracts awarded through competitive processes?
Without specific details on the barge's specifications (size, capacity, features) and comparable contract data, a precise cost comparison is difficult. However, $49.7 million for a specialized steel deck barge awarded competitively suggests a significant investment. Benchmarking against other DoD contracts for similar marine vessels, considering factors like tonnage, complexity, and shipyard location, would be necessary for a thorough assessment of value.
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: W912BU23B0016
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4350 NW FRONT AVE, PORTLAND, OR, 97210
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,714,413
Exercised Options: $49,714,413
Current Obligation: $49,714,413
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-07
Current End Date: 2026-07-01
Potential End Date: 2026-07-01 00:00:00
Last Modified: 2026-01-05
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