HSV Swift Gets New Contract

From todays list of DoD contracts:

Sealift, Inc., Oyster Bay, N.Y., is being awarded a $21,913,900 firm-fixed-price contract for the 12-month charter of the U.S.-flagged, contractor-operated, high speed vessel, HSV Swift. HSV Swift will be operated worldwide in support of U.S. Fleet Forces Command and the war on terrorism. The vessel will also be used for emerging operational concepts such as seabasing and the Global Fleet Station. The contract contains four options, which include three 12-month options and one 11-month option, which if exercised, would bring the total contract value to $93,076,577. Work will be performed worldwide, and work is expected to be completed Sept. 2009 (Aug. 2013 with options exercised). Contract funds will expire at the end of the current fiscal year. This contract was competitively procured with more than 80 proposals solicited and one offer received. The U.S. Navy’s Military Sealift Command, Washington, D.C., is the contracting authority (N00033-08-C-3315).

$21,913,900 and up to $93,076,577 for 59 months strikes us as unusually high for a charter like this. Is HSV Swift being upgraded? Could be the last charter underestimated the costs?

Still, for the operational tempo of this vessel, it is still a good deal. If all options are exercised, HSV Swift will be operational until after the JHSV comes online.

HT: LW