Navy Awards $174.7M Contract for Aegis Cruisers to Litton Shipbuilding
Contract Overview
Contract Amount: $144,273,696 ($144.3M)
Contractor: Huntington Ingalls Incorporated
Awarding Agency: Department of Defense
Start Date: 2000-09-25
End Date: 2002-09-30
Contract Duration: 735 days
Daily Burn Rate: $196.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200012!1700!003840!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002400C2300 !A!*!* !20000925!20010930!174786913!174786913!001922749!N!34293!LITTON SHIPBUILDING INC !1000 ACCESS RD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JACKSON !MISS !0001!+000000004625!N!N!000000000000!1902!CRUISERS !A3 !SHIPS !2CNZ!CG-47 AEGIS !3731!3!*!*!*!B!A!*!D !N!R!1!001!N!1G!A!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39568
Plain-Language Summary
Department of Defense obligated $144.3 million to HUNTINGTON INGALLS INCORPORATED for work described as: 200012!1700!003840!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002400C2300 !A!*!* !20000925!20010930!174786913!174786913!001922749!N!34293!LITTON SHIPBUILDING INC !1000 ACCESS RD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JAC… Key points: 1. Contract awarded for Aegis cruisers, a critical component of naval defense. 2. The contract was not competed, raising questions about price discovery. 3. Litton Shipbuilding, now part of Huntington Ingalls, is a major defense contractor. 4. The sector is characterized by high barriers to entry and long-term programs.
Value Assessment
Rating: fair
The contract value of $174.7 million for Aegis cruisers appears substantial. Benchmarking against similar complex naval shipbuilding contracts is necessary to assess value, as specific cost breakdowns are not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to a higher overall cost for this significant defense expenditure.
Public Impact
Supports the modernization of the U.S. Navy's cruiser fleet. Ensures continued operation and maintenance of advanced Aegis combat systems. Impacts the shipbuilding industrial base and associated workforce in Mississippi.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
- Long contract duration
Positive Signals
- Supports critical naval defense capabilities
- Awarded to an established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically naval shipbuilding. Spending in this area is typically characterized by large, complex, and long-term projects with significant R&D and specialized labor requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large shipbuilding contracts often involve prime contractors who may then subcontract to smaller entities.
Oversight & Accountability
Oversight would typically be managed by the Naval Sea Systems Command (NAVSEA). The contract type (Cost Plus Award Fee) suggests performance incentives, which require monitoring to ensure cost control and effectiveness.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Long contract duration increases exposure to changing requirements and economic factors.
- Lack of transparency on specific performance metrics and award fee achievement.
Tags
department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $144.3 million to HUNTINGTON INGALLS INCORPORATED. 200012!1700!003840!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002400C2300 !A!*!* !20000925!20010930!174786913!174786913!001922749!N!34293!LITTON SHIPBUILDING INC !1000 ACCESS RD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JACKSON !MISS !0001!+000000004625!N!N!000000000000!1902!CRUISERS !A3 !SHIPS !2CNZ!CG-47 AEGIS !3731!3!*!*!*!B!A!*!D !N!R!
Who is the contractor on this award?
The obligated recipient is HUNTINGTON INGALLS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $144.3 million.
What is the period of performance?
Start: 2000-09-25. End: 2002-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award would likely stem from unique capabilities, specialized knowledge, or the unavailability of alternative sources for the specific Aegis cruiser construction or modification. Detailed documentation would be required to validate this rationale and ensure it aligns with federal procurement regulations.
How does the final cost compare to the initial award amount, and were award fees achieved?
Without post-award data, it's impossible to determine the final cost or if award fees were met. Cost Plus Award Fee contracts require close monitoring of performance metrics against established criteria to justify any awarded fees, impacting the total taxpayer expenditure.
What is the long-term strategic value of these Aegis cruisers to the Navy's fleet modernization?
Aegis cruisers are central to the Navy's air and missile defense capabilities. Their continued procurement and modernization are vital for maintaining fleet readiness and projecting power in complex geopolitical environments, ensuring the U.S. maintains a technological advantage.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 1000 ACCESS RD, PASCAGOULA, MS, 39567
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-09-25
Current End Date: 2002-09-30
Potential End Date: 2002-09-30 00:00:00
Last Modified: 2020-08-05
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