While on a water-skiing vacation with The Chipettes, Alvin forgets to tie up the boat belonging to Dave’s friend Ed, and it sinks. The gang tries to replace it. After Alvin orders a toy boat which he mistook for the real thing at a cheap price, Brittany steals a boat as she thought it looked enough like Ed's old one. When Dave finds out, he gets mad and asks them about the boat. Luckily, Ed came just in time and brought back their boat all tuned up for the contest. He explained everything in a note made for Alvin, which he never took the time to open and read. With the problem solved, they go ahead and perform for the contest, winning the grand prize. Unfortunately, Alvin and Brittany are surprised that their prize wasn't exactly what they hoped for.
- "Vacation" originally performed by The Go-Go's.
- The title is a pun on the Bee Gees song "Stayin' Alive."