DoD's $31.7M Ship Repair Contract Awarded to Metro Machine Corp. Under Full and Open Competition
Contract Overview
Contract Amount: $31,715,650 ($31.7M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2006-04-26
End Date: 2007-03-30
Contract Duration: 338 days
Daily Burn Rate: $93.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.7 million to METRO MACHINE CORP. for work described as: Key points: 1. The contract value is $31.7 million, awarded by the Department of the Navy. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The sector is Ship Building and Repairing, a specialized area within defense.
Value Assessment
Rating: good
The contract value of $31.7 million for ship repair services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts would provide a more definitive assessment of pricing.
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 competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, as multiple companies vied for the contract, potentially driving down costs.
Public Impact
Ensures readiness of naval vessels through essential repair and maintenance services. Supports the shipbuilding and repair industry, contributing to economic activity. Provides critical infrastructure maintenance for national defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require robust oversight to ensure costs are controlled and award fees are justified.
- The duration of the contract (338 days) is relatively short, which might limit the scope of work or indicate a need for follow-on contracts.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- The contract supports a critical defense function: naval vessel maintenance.
Sector Analysis
The shipbuilding and repairing sector is highly specialized, often involving complex engineering and skilled labor. Spending in this area is crucial for maintaining a capable naval fleet and supporting national security objectives.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to assess small business inclusion.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from the Department of the Navy to ensure that costs are reasonable and that award fees are earned based on performance metrics. Regular audits and performance reviews are essential.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Lack of specific performance metrics makes it difficult to assess the justification for award fees.
- No indication of small business participation.
- The benchmark price is not readily available for comparison.
Tags
ship-building-and-repairing, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to METRO MACHINE CORP.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is METRO MACHINE CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2006-04-26. End: 2007-03-30.
What specific performance metrics were used to determine the award fee for this contract, and how were they evaluated?
The specific performance metrics for this Cost Plus Award Fee contract are not detailed in the provided data. Typically, such metrics would relate to factors like schedule adherence, quality of work, technical performance, and cost control. The Department of the Navy would have established these criteria and a process for evaluating Metro Machine Corp.'s performance against them to justify any award fees paid.
How does the benchmark price for similar ship repair services compare to the awarded amount of $31.7 million?
Without access to a database of comparable ship repair contracts, it is difficult to definitively benchmark the $31.7 million award. Factors such as the specific type of vessel, the scope of repairs, the complexity of the work, and prevailing market rates would influence pricing. A thorough benchmark analysis would require comparing this contract to similar awards made by the DoD or other maritime entities.
What is the potential long-term impact of this contract on the operational readiness of the Navy's fleet?
This contract directly contributes to the operational readiness of the Navy's fleet by ensuring that vessels receive necessary repairs and maintenance. Timely and effective completion of the work under this contract would prevent degradation of vessel systems, maintain combat effectiveness, and reduce the likelihood of mission-critical failures at sea. The quality of the repair work is paramount to sustained readiness.
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: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 200 LIGON ST, NORFOLK, VA, 03
Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-04-26
Current End Date: 2007-03-30
Potential End Date: 2011-01-19 00:00:00
Last Modified: 2014-06-04
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