DoD awards $30M for two triple screw towboats, with Superior Marine Ways Inc. securing the contract

Contract Overview

Contract Amount: $30,000,000 ($30.0M)

Contractor: Superior Marine Ways, Inc

Awarding Agency: Department of Defense

Start Date: 2024-11-06

End Date: 2027-07-19

Contract Duration: 985 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TWO (2) TRIPLE SCREW TOWBOATS

Place of Performance

Location: SOUTH POINT, LAWRENCE County, OHIO, 45680

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to SUPERIOR MARINE WAYS, INC for work described as: TWO (2) TRIPLE SCREW TOWBOATS Key points: 1. The contract value of $30 million for two specialized towboats suggests a significant investment in maritime logistics. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though the specific exclusion warrants further examination. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The duration of 985 days points to a substantial construction and delivery timeline. 5. The contract is awarded to a single entity, Superior Marine Ways, Inc., highlighting potential specialization or consolidation in this niche market. 6. The North American Industry Classification System (NAICS) code 336611 points to the shipbuilding and repairing sector.

Value Assessment

Rating: fair

Benchmarking the value of $30 million for two triple screw towboats is challenging without specific technical requirements and market data for comparable vessels. However, the firm-fixed-price structure suggests an attempt to control costs. Further analysis would require comparing the per-unit cost against similar government or commercial procurements for vessels with equivalent capabilities and specifications. The absence of detailed performance metrics makes a definitive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method implies 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 and the rationale for exclusions are not detailed, making it difficult to fully assess the extent of competition and its impact on price discovery.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources suggests a targeted approach. Taxpayers benefit from a process that aims to identify qualified providers, but the potential for reduced competition due to exclusions could impact the final price paid.

Public Impact

The primary beneficiaries are the Department of Defense and its maritime operations, which will receive two specialized towboats. These towboats are likely intended to support port operations, vessel movement, and potentially other logistical tasks within naval facilities. The geographic impact is likely concentrated around naval bases or areas where the Army operates its maritime assets, potentially in Ohio given the state code. The contract supports the shipbuilding and repair industry, potentially creating or sustaining jobs within that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a competitive bid process can limit overall competition and potentially lead to higher prices.
Lack of detailed technical specifications and performance metrics makes it difficult to assess the true value for money.
The long contract duration could introduce risks related to material cost fluctuations or technological obsolescence.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award to a single entity may indicate a highly specialized requirement met by a capable provider.
The contract is for essential maritime assets, supporting critical defense operations.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a capital-intensive industry focused on constructing and maintaining vessels. This contract falls within the defense sub-sector, where specialized vessels are crucial for military operations. Comparable spending benchmarks are difficult to establish without detailed vessel specifications, but large naval contracts for specialized craft can range from tens to hundreds of millions of dollars. The market for such specialized towboats is likely niche, with a limited number of qualified manufacturers.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary set-aside criterion for this contract. There is no explicit mention of small business subcontracting goals. This suggests that the primary contractor, Superior Marine Ways, Inc., is likely a larger entity, and the contract's value and specialized nature may not lend themselves to significant subcontracting opportunities for small businesses within this specific procurement.

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 structure, which incentivizes the contractor to meet cost targets. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Construction
Maritime Logistics Support
Shipbuilding and Repair Contracts
Defense Procurement
Army Vessel Acquisition

Risk Flags

Limited Competition Justification
Potential for Cost Overruns (FFP Risk)
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to SUPERIOR MARINE WAYS, INC. TWO (2) TRIPLE SCREW TOWBOATS

Who is the contractor on this award?

The obligated recipient is SUPERIOR MARINE WAYS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2024-11-06. End: 2027-07-19.

What specific capabilities do 'triple screw towboats' offer that make them suitable for Department of the Army operations?

Triple screw towboats are designed with three propeller shafts and engines, providing enhanced maneuverability, redundancy, and power compared to twin-screw or single-screw vessels. This configuration is particularly advantageous in confined port environments or when handling large, unwieldy vessels, allowing for precise control and increased bollard pull (towing force). For the Department of the Army, these capabilities are crucial for efficient and safe operations within naval bases, shipyards, and potentially in support of amphibious landings or logistical movements in challenging waterways. The redundancy offered by the triple-screw design also enhances operational reliability, minimizing downtime in critical military scenarios.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process typically impact pricing and contractor selection?

This procurement method aims to balance broad competition with specific requirements. Initially, the solicitation is open to all responsible sources. However, certain sources are then excluded, often due to unique technical capabilities, specialized manufacturing processes, or prior performance on related projects that are deemed essential for this specific contract. While this can narrow the field, it ensures that the remaining bidders possess the necessary qualifications. The impact on pricing can be mixed: reduced competition might theoretically lead to higher prices, but if the excluded sources were not truly capable, the remaining competition among qualified bidders could still yield competitive pricing. The key is the justification for exclusions and the number of viable bidders remaining.

What are the potential risks associated with a firm-fixed-price contract for specialized vessel construction over a 985-day period?

A firm-fixed-price (FFP) contract shifts most of the cost risk to the contractor. For a long-duration project like specialized vessel construction (985 days), potential risks include fluctuations in material costs (steel, engines, specialized components), labor cost increases, and unforeseen technical challenges during the build. If Superior Marine Ways, Inc. underestimated these costs or encountered significant, unbudgeted issues, their profit margin could be eroded, potentially leading to quality compromises or even financial distress for the contractor. Conversely, if they accurately predicted costs and managed the project efficiently, they could realize a substantial profit. The government benefits from price certainty but risks paying a premium if the contractor prices high to cover perceived risks.

Can we compare the per-unit cost of these towboats to other similar government or commercial procurements?

Directly comparing the per-unit cost of $15 million ($30 million / 2 boats) for these triple screw towboats is difficult without detailed specifications. The 'Ship Building and Repairing' (NAICS 336611) category is broad. Factors like vessel size (length, beam, draft), horsepower, specialized equipment (cranes, fire suppression), propulsion systems, and compliance with specific naval standards significantly influence cost. Commercial towboats can range widely, from a few million dollars for standard harbor tugs to over $20 million for highly specialized offshore or escort vessels. Given these are likely for military use and possess specific 'triple screw' capabilities, the $15 million per unit appears within a plausible range for specialized maritime assets, but a definitive benchmark requires a detailed specification comparison.

What is the historical spending pattern for similar maritime assets within the Department of the Army or DoD?

Historical spending on maritime assets within the Department of the Army and DoD is substantial and varied. The Army operates a fleet of logistical support vessels, landing craft, and harbor craft, including various types of tugboats, for port operations and transportation. The Navy, which often procures similar or more complex vessels, spends billions annually on shipbuilding and repair. Contracts for specialized tugboats or service craft can range from single-digit millions to tens of millions of dollars, depending on size, capability, and complexity. Analyzing past awards for similar vessels, considering inflation and technological advancements, would provide context for the $30 million allocation. However, specific data on 'triple screw towboats' for the Army might be limited, requiring broader analysis of harbor craft and support vessel procurements.

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: W912BU24B0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5852 COUNTY ROAD 1, SOUTH POINT, OH, 45680

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,000,000

Exercised Options: $30,000,000

Current Obligation: $30,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline