Naval Sea Systems Command Awards $248M Contract for Non-Nuclear Ship Repair to BAE Systems
Contract Overview
Contract Amount: $248,310,283 ($248.3M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2004-12-20
End Date: 2010-10-15
Contract Duration: 2,125 days
Daily Burn Rate: $116.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200505!137188!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4404 !A!N! !N! ! !20041220!20091231!003175072!824825459!217304393!N!BAE SYSTEMS NORFOLK SHIP REPAI!750 W BERKLEY AVE !NORFOLK !VA!23523!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000000095202!N!N!000049500997!J998!NON-NUCLEAR SHIP REPAIR (EAST) !A3 !SHIPS !000 !* !336611!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!R!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!Y! !N! !Y!1700!N00024!0001! !
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $248.3 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: 200505!137188!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4404 !A!N! !N! ! !20041220!20091231!003175072!824825459!217304393!N!BAE SYSTEMS NORFOLK SHIP REPAI!750 W BERKLEY AVE !NORFOLK !VA!23523!57000!710!51!NORFOLK !NORF… Key points: 1. Contract awarded to BAE Systems for ship repair services. 2. Significant value of $248 million indicates a large-scale project. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract value of $248 million for ship repair is substantial. Benchmarking against similar naval repair contracts would be necessary to fully assess pricing, but the use of Cost Plus Award Fee suggests a structure aimed at incentivizing performance and cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.
Public Impact
Supports naval readiness and maintenance operations. Provides significant economic activity and jobs in Norfolk, Virginia. Ensures the operational capability of the U.S. Navy's fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee contracts.
- Long contract duration (over 5 years) may require ongoing monitoring.
Positive Signals
- Awarded through full and open competition.
- Contract structure includes award fees to incentivize performance.
Sector Analysis
This contract is within the shipbuilding and repair sector, which is critical for national defense. Spending in this sector can be cyclical and influenced by geopolitical factors and defense budgets. The value is substantial for a single contract.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The use of full and open competition and an award fee structure suggests some level of oversight. However, the effectiveness of oversight would depend on the specific monitoring mechanisms in place by the Naval Sea Systems Command.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost growth potential with CPAF contract type.
- Reliance on a single large contractor.
- Long-term contract duration requires sustained oversight.
- Potential for scope creep if requirements are not clearly defined.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $248.3 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. 200505!137188!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4404 !A!N! !N! ! !20041220!20091231!003175072!824825459!217304393!N!BAE SYSTEMS NORFOLK SHIP REPAI!750 W BERKLEY AVE !NORFOLK !VA!23523!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000000095202!N!N!000049500997!J998!NON-NUCLEAR SHIP REPAIR (EAST) !A3 !SHIPS !000 !* !336611!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $248.3 million.
What is the period of performance?
Start: 2004-12-20. End: 2010-10-15.
What is the historical performance of BAE Systems on similar naval repair contracts?
Historical performance data for BAE Systems on comparable naval repair contracts is crucial for assessing future performance and risk. Reviewing past contract awards, performance reviews, and any documented issues or successes would provide valuable insights into their capabilities, reliability, and cost management practices. This information helps validate the current award and inform future procurement decisions.
How does the Cost Plus Award Fee structure compare to other contract types for this type of service?
Cost Plus Award Fee (CPAF) contracts allow the contractor to recover allowable costs plus a fee that is composed of a base fee plus an award amount. This structure is often used when performance outcomes are difficult to define precisely upfront. Compared to fixed-price contracts, CPAF can offer more flexibility but also carries a higher risk of cost growth if not managed diligently. Its effectiveness hinges on well-defined performance metrics and robust government oversight.
What is the potential impact of this contract on the regional shipbuilding and repair labor market?
A contract of this magnitude, valued at $248 million, is likely to have a significant positive impact on the regional labor market in Norfolk, Virginia, and surrounding areas. It would support job creation and retention within the shipbuilding and repair industry, potentially boosting local economies through employment and related service demands. The duration of the contract also suggests sustained economic benefits.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-12-20
Current End Date: 2010-10-15
Potential End Date: 2011-04-15 00:00:00
Last Modified: 2022-09-02
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