DoD's $22M Mobile Bay Repair Contract Awarded to HII San Diego Shipyard Under Full and Open Competition
Contract Overview
Contract Amount: $22,084,979 ($22.1M)
Contractor: HII SAN Diego Shipyard Inc.
Awarding Agency: Department of Defense
Start Date: 2016-12-15
End Date: 2017-08-20
Contract Duration: 248 days
Daily Burn Rate: $89.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF USS MOBILE BAY (CG53) FY17 SRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $22.1 million to HII SAN DIEGO SHIPYARD INC. for work described as: IGF::CT::IGF USS MOBILE BAY (CG53) FY17 SRA Key points: 1. The contract value of $22.08 million for ship repair services represents a significant investment in naval readiness. 2. Competition was full and open, suggesting a competitive bidding process that could lead to favorable pricing. 3. The award to HII San Diego Shipyard, a known entity in naval shipbuilding, indicates a focus on established capabilities. 4. The sector is Defense, specifically ship repair, which is critical for maintaining the operational status of naval assets.
Value Assessment
Rating: good
The award amount of $22.08 million for a 248-day delivery order appears reasonable given the scope of ship repair. Benchmarking against similar complex naval vessel repairs would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple bidders to submit proposals. This method generally promotes price discovery and can lead to competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, ensuring taxpayer funds are used efficiently for essential naval maintenance.
Public Impact
Ensures the operational readiness of the USS Mobile Bay (CG53), a key asset for national security. Supports jobs and economic activity within the shipbuilding and repair sector in California. Demonstrates the Department of the Navy's commitment to maintaining its fleet through competitive contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repair issues arise.
- Dependence on a single contractor for a critical repair task.
Positive Signals
- Awarded under full and open competition.
- Utilizes a firm-fixed-price contract type.
- Contract awarded to a known, capable shipyard.
Sector Analysis
The defense sector, particularly naval ship repair, is characterized by high technical complexity and significant capital investment. Spending benchmarks for similar vessel repairs can vary widely based on the ship's class, age, and the extent of required work.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting existing oversight mechanisms. The firm-fixed-price nature of the contract provides some cost control, but ongoing monitoring of performance and scope is crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage impacting fleet readiness.
- Risk of unforeseen repair requirements leading to cost increases.
- Dependence on a single contractor for a critical maintenance task.
- Need for robust oversight to ensure quality and prevent scope creep.
Tags
ship-building-and-repairing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to HII SAN DIEGO SHIPYARD INC.. IGF::CT::IGF USS MOBILE BAY (CG53) FY17 SRA
Who is the contractor on this award?
The obligated recipient is HII SAN DIEGO SHIPYARD INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2016-12-15. End: 2017-08-20.
What is the typical cost range for similar ship repair projects for a Ticonderoga-class cruiser?
The cost range for similar repair projects for a Ticonderoga-class cruiser can vary significantly, typically from $10 million to over $50 million, depending on the scope of work, the age of the vessel, and the specific shipyard. Factors like emergent repairs, modernization upgrades, and dry-docking duration heavily influence the final price. Without detailed specifications for this particular repair, a precise benchmark is difficult, but $22 million falls within a plausible mid-range for significant maintenance.
What are the primary risks associated with extending a contract for ship repair services?
Primary risks include potential cost overruns due to unforeseen structural issues or equipment failures discovered during the repair process. Schedule delays are also a significant risk, impacting fleet readiness. Furthermore, a lack of robust oversight could lead to substandard work or inefficient use of resources. The firm-fixed-price nature mitigates some cost risk, but scope creep and the need for additional, potentially sole-source, work orders remain concerns.
How effectively does full and open competition ensure value for money in specialized defense contracting like ship repair?
Full and open competition generally enhances value for money by fostering a competitive environment where multiple qualified contractors vie for the contract, driving down prices and encouraging innovation. However, in highly specialized fields like naval ship repair, the number of truly capable bidders may be limited. While competition is beneficial, the government must ensure that the lowest bid doesn't compromise quality or long-term reliability. Effective evaluation criteria beyond just price are crucial.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002416R4401
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 1995 BAY FRONT ST, SAN DIEGO, CA, 92113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,084,979
Exercised Options: $22,084,979
Current Obligation: $22,084,979
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002416D4417
IDV Type: IDC
Timeline
Start Date: 2016-12-15
Current End Date: 2017-08-20
Potential End Date: 2017-08-20 00:00:00
Last Modified: 2018-10-17
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