Navy Awards $140M Contract for Destroyer Support to Bath Iron Works
Contract Overview
Contract Amount: $140,456,200 ($140.5M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Defense
Start Date: 2002-11-19
End Date: 2005-11-10
Contract Duration: 1,087 days
Daily Burn Rate: $129.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200304!030439!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2306 !A!N! !N! !20021119!20031118!045953718!045953718!001381284!N!BATH IRON WORKS CORPORATION !700 WASHINGTON ST !BATH !ME!04530!03355!023!23!BATH !SAGADAHOC !MAINE !+000048204577!N!N!000071767045!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !488390!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $140.5 million to BATH IRON WORKS CORPORATION for work described as: 200304!030439!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2306 !A!N! !N! !20021119!20031118!045953718!045953718!001381284!N!BATH IRON WORKS CORPORATION !700 WASHINGTON ST !BATH !ME!04530!03355!023!23!BATH !SAGAD… Key points: 1. Contract awarded to a single, established shipyard, raising questions about competition. 2. Significant funding allocated for destroyer support, indicating critical naval asset maintenance. 3. Potential for cost overruns exists given the Cost Plus Award Fee structure. 4. The sector is dominated by a few large players, limiting broader industry impact.
Value Assessment
Rating: fair
The contract value of $140.4 million for destroyer support appears substantial. Benchmarking against similar support contracts for naval vessels is difficult without more detailed cost breakdowns, but the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Bath Iron Works Corporation. This limits price discovery and may result in higher costs than if competitive bids were solicited.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore potentially lower-cost alternatives.
Public Impact
Ensures continued operational readiness of critical naval assets (DDG-51 class destroyers). Supports jobs and economic activity in Maine's shipbuilding and maritime sector. Highlights the long-term investment required for maintaining a modern naval fleet.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure can incentivize spending
- Long contract duration
Positive Signals
- Supports critical defense infrastructure
- Awarded to a known, experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting naval shipbuilding and maintenance. Spending in this area is typically high and driven by national security needs, with limited competition for specialized vessel support.
Small Business Impact
The contract was awarded to Bath Iron Works Corporation, a large prime contractor, not a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and cost control, though the sole-source nature limits some oversight avenues.
Related Government Programs
- Other Support Activities for Water Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to fee structure
- Sole-source award limits market competition
- Long contract duration increases risk exposure
Tags
other-support-activities-for-water-trans, department-of-defense, me, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $140.5 million to BATH IRON WORKS CORPORATION. 200304!030439!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2306 !A!N! !N! !20021119!20031118!045953718!045953718!001381284!N!BATH IRON WORKS CORPORATION !700 WASHINGTON ST !BATH !ME!04530!03355!023!23!BATH !SAGADAHOC !MAINE !+000048204577!N!N!000071767045!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !488390!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is BATH IRON WORKS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $140.5 million.
What is the period of performance?
Start: 2002-11-19. End: 2005-11-10.
What is the specific scope of 'Other Support Activities for Water Transportation' covered by this contract?
The data indicates the contract is for 'DESTROYERS' and specifically 'DESTROYER DDG-51'. While the broader category is 'Other Support Activities for Water Transportation', the context strongly suggests the support is directly related to the maintenance, repair, or modernization of DDG-51 class destroyers, a critical component of the US Navy's fleet.
What are the key performance metrics and award fee criteria for this Cost Plus Award Fee contract?
The provided data does not detail the specific performance metrics or award fee criteria. For a Cost Plus Award Fee contract, these typically involve meeting schedule milestones, quality standards, and potentially cost-saving initiatives. The 'award fee' component suggests incentives for exceeding baseline performance expectations.
How does the $140.4 million cost compare to historical spending on similar destroyer support contracts?
Without access to historical contract data for similar DDG-51 support services, a direct comparison is challenging. However, the contract value is substantial, reflecting the complexity and cost associated with maintaining advanced naval vessels over a multi-year period. Further analysis would require benchmarking against comparable contracts.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation
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: General Dynamics Corp (UEI: 001381284)
Address: 700 WASHINGTON ST, BATH, ME, 04530
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-11-19
Current End Date: 2005-11-10
Potential End Date: 2005-11-10 00:00:00
Last Modified: 2018-04-12
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