Naval Sea Systems Command awards $174.7M contract for Destroyer DDG-51 production to Ingalls Shipbuilding

Contract Overview

Contract Amount: $53,057,241 ($53.1M)

Contractor: Huntington Ingalls Incorporated

Awarding Agency: Department of Defense

Start Date: 2000-12-12

End Date: 2017-04-07

Contract Duration: 5,960 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200106!014712!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2302 !A!N!*!N! !20001212!20020430!174786913!001922749!016435559!N!INGALLS SHIPBUILDING, INC !1000 ACCESS ROAD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JACKSON !MISS !+000001000000!N!N!000000000000!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !336611!*!*!1! ! ! !*!*!*!B!*!*!N!A!D !Y!R!1!001!N!2A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39568

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $53.1 million to HUNTINGTON INGALLS INCORPORATED for work described as: 200106!014712!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2302 !A!N!*!N! !20001212!20020430!174786913!001922749!016435559!N!INGALLS SHIPBUILDING, INC !1000 ACCESS ROAD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JACKS… Key points: 1. Contract awarded for the production of Destroyer DDG-51. 2. Ingalls Shipbuilding, Inc. is the contractor, a subsidiary of Huntington Ingalls Incorporated. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The sector is Defense, specifically shipbuilding and repair.

Value Assessment

Rating: fair

The contract value is $174.7 million over a duration of 5960 days. Without specific cost breakdowns or benchmarks for Destroyer DDG-51 production, a precise value assessment is difficult. However, the Cost Plus Award Fee structure suggests potential for cost overruns if performance targets are not met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the shipbuilding services.

Public Impact

Supports national defense by procuring critical naval assets. Ensures continued operation and modernization of the U.S. Navy's fleet. Contributes to the shipbuilding industry and associated jobs in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Award Fee structure can lead to cost overruns
Long contract duration may not reflect current market conditions

Positive Signals

Supports critical defense capabilities
Long-term commitment to a specific naval platform

Sector Analysis

This contract falls within the Defense sector, specifically shipbuilding and repair. Spending in this sector is heavily influenced by national security priorities and geopolitical events. Benchmarks for shipbuilding contracts are highly variable due to complexity and customization.

Small Business Impact

The prime contractor, Huntington Ingalls Incorporated, is a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific contract.

Oversight & Accountability

The contract is managed by the Naval Sea Systems Command, part of the Department of the Navy. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure contract compliance and value.

Related Government Programs

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

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Award Fee structure carries inherent risk of cost overruns.
Long contract duration may not reflect evolving technological needs or market efficiencies.
Potential for performance issues impacting delivery schedules or quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.1 million to HUNTINGTON INGALLS INCORPORATED. 200106!014712!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2302 !A!N!*!N! !20001212!20020430!174786913!001922749!016435559!N!INGALLS SHIPBUILDING, INC !1000 ACCESS ROAD !PASCAGOULA !MS!39568!55360!059!28!PASCAGOULA !JACKSON !MISS !+000001000000!N!N!000000000000!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !336611!*!*!1! ! ! !*!*!*!B!*!*!N!

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 $53.1 million.

What is the period of performance?

Start: 2000-12-12. End: 2017-04-07.

What is the historical cost performance of Ingalls Shipbuilding on similar destroyer production contracts?

Analyzing historical cost performance on comparable destroyer production contracts would provide crucial insights into Ingalls Shipbuilding's efficiency and cost control capabilities. This data would help determine if the current contract's pricing is reasonable and identify potential risks of cost overruns, ultimately informing the government's negotiation and oversight strategies.

What are the specific award fee criteria and how have they been met in previous periods?

Understanding the specific award fee criteria is essential to assess the effectiveness of the Cost Plus Award Fee structure. Knowing how these criteria have been met historically would reveal the contractor's performance trends and the government's ability to incentivize desired outcomes, thereby evaluating the overall value and risk associated with the contract.

What is the projected impact of this contract on the overall readiness and modernization of the Navy's destroyer fleet?

The projected impact of this contract on fleet readiness and modernization is a key effectiveness measure. Evaluating the timely delivery and quality of the Destroyers DDG-51 produced under this contract directly relates to the Navy's operational capabilities and its ability to maintain a modern, capable fleet to meet national security objectives.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

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: NO

Timeline