Department of the Army awards $18.7M contract for LSV-3 Repairs to Lyon Shipyard Inc

Contract Overview

Contract Amount: $18,738,763 ($18.7M)

Contractor: Lyon Shipyard Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-08

End Date: 2012-06-11

Contract Duration: 277 days

Daily Burn Rate: $67.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LSV-3 REPAIRS

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to LYON SHIPYARD INC for work described as: LSV-3 REPAIRS Key points: 1. The contract value of $18.7M for ship repair services falls within typical ranges for such specialized work. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract duration of 277 days indicates a significant scope of work for the LSV-3 vessel. 4. The award to Lyon Shipyard Inc. highlights the role of established maritime contractors in defense logistics.

Value Assessment

Rating: good

The contract price of $18.7M for LSV-3 repairs appears reasonable given the scope and duration. Benchmarking against similar naval vessel repair contracts would provide further validation, but the use of full and open competition suggests a price discovery mechanism was in place.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method is expected to foster a competitive environment, leading to more efficient pricing and better value for the government.

Taxpayer Impact: The competitive nature of the award process is likely to result in taxpayer savings compared to non-competitive or limited solicitations.

Public Impact

Ensures operational readiness of the LSV-3 vessel, a critical asset for military transport. Supports the maritime repair industry, contributing to jobs and economic activity in the sector. Demonstrates the Department of Defense's commitment to maintaining its fleet through competitive procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repair issues arise beyond the initial scope.
Dependence on a single contractor for a critical repair task.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Clear contract type (Firm Fixed Price) limits financial risk for the government.
Defined delivery period helps manage project timeline and resource allocation.

Sector Analysis

The ship building and repairing sector (NAICS 336611) is a specialized industrial segment crucial for national defense and maritime commerce. Spending in this area can fluctuate based on fleet modernization needs and maintenance cycles. This contract represents a significant investment in maintaining naval assets.

Small Business Impact

While the data does not explicitly state small business participation, the use of full and open competition theoretically allows for small businesses to compete if they meet the qualifications. Further analysis would be needed to confirm if small businesses were involved in the bidding or subcontracting.

Oversight & Accountability

The contract's firm fixed price structure and defined delivery period provide a basis for oversight. Monitoring progress against the schedule and ensuring adherence to specifications will be key accountability measures for the Department of the Army.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for scope creep leading to cost increases.
Reliance on a single contractor for critical repairs.
Need to verify contractor's past performance and capacity.
Ensuring adherence to firm-fixed-price terms throughout the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to LYON SHIPYARD INC. LSV-3 REPAIRS

Who is the contractor on this award?

The obligated recipient is LYON SHIPYARD 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 $18.7 million.

What is the period of performance?

Start: 2011-09-08. End: 2012-06-11.

What is the historical performance record of Lyon Shipyard Inc. on similar government contracts?

Assessing Lyon Shipyard Inc.'s past performance on comparable contracts is crucial for understanding their reliability and quality of work. A review of their track record, including any past issues with delivery, cost overruns, or quality control, would provide valuable insight into the potential risks and overall value associated with this current award. This information helps the government make informed decisions about contractor selection and project management.

How does the awarded price compare to industry benchmarks for similar vessel repair services?

Comparing the $18.7M award to established industry benchmarks for LSV-3 class vessel repairs is essential for validating its cost-effectiveness. Factors such as the vessel's condition, specific repair requirements, and prevailing market rates for labor and materials influence pricing. A favorable comparison would indicate good value for taxpayer money, while a significantly higher price might warrant further investigation into the procurement process or unforeseen complexities.

What are the specific performance metrics and deliverables outlined in the contract to ensure successful completion?

Understanding the specific performance metrics and deliverables is key to evaluating the contract's effectiveness and ensuring accountability. This includes details on the scope of repairs, quality standards, inspection protocols, and the final acceptance criteria for the LSV-3. Clear, measurable objectives allow the Department of the Army to track progress, identify potential issues early, and confirm that the repairs meet all necessary operational and safety requirements.

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: W911S009R0017

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 BROWN AVE, NORFOLK, VA, 23504

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,738,763

Exercised Options: $18,738,763

Current Obligation: $18,738,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911S010D0009

IDV Type: IDC

Timeline