DoD Awards $350M Contract for S9G Components to Bechtel Plant Machinery, Inc
Contract Overview
Contract Amount: $349,638,474 ($349.6M)
Contractor: Bechtel Plant Machinery, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-14
End Date: 2025-09-30
Contract Duration: 6,195 days
Daily Burn Rate: $56.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASIC AWARD FOR S9G COMPONENTS
Place of Performance
Location: SCHENECTADY, SCHENECTADY County, NEW YORK, 12305
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $349.6 million to BECHTEL PLANT MACHINERY, INC. for work described as: BASIC AWARD FOR S9G COMPONENTS Key points: 1. Significant award value of $349.6M for specialized components. 2. Contract awarded via 'Not Competed' method, raising questions about competition. 3. Long contract duration (2008-2025) suggests ongoing need and potential for cost escalation. 4. Focus on Ship Building and Repairing sector, critical for naval readiness.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize contractors to increase costs. Without competitive bidding, it's difficult to assess if the $349.6M price represents fair value compared to market alternatives.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a large contract like this may result in taxpayers paying a premium for the S9G components.
Public Impact
Impacts naval shipbuilding and repair capabilities, essential for national defense. Potential for cost overruns due to the 'Cost Plus Fixed Fee' structure and lack of competition. Long-term commitment to a single supplier raises concerns about future innovation and flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- No small business participation
Positive Signals
- Essential components for naval operations
- Established contractor with relevant experience
Sector Analysis
This contract falls within the Ship Building and Repairing sector, a critical area for national defense. Spending in this sector is often characterized by long-term, high-value contracts due to the complexity and specialized nature of naval vessels.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses in this specific procurement were either non-existent or not pursued.
Oversight & Accountability
The 'Not Competed' designation warrants further oversight to ensure the justification for sole-sourcing was robust and that the pricing is reasonable. Accountability for cost management under a CPFF contract is crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pressure on pricing.
- Cost-plus contract type can lead to cost overruns.
- No small business participation limits economic opportunity.
- Long contract duration increases risk of price escalation.
- Lack of transparency regarding justification for 'Not Competed'.
Tags
ship-building-and-repairing, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $349.6 million to BECHTEL PLANT MACHINERY, INC.. BASIC AWARD FOR S9G COMPONENTS
Who is the contractor on this award?
The obligated recipient is BECHTEL PLANT MACHINERY, 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 $349.6 million.
What is the period of performance?
Start: 2008-10-14. End: 2025-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and has it been reviewed for necessity?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. A thorough review would assess if these conditions truly existed and if alternative sourcing methods were explored. Without this information, it's difficult to ascertain if the government acted in the best interest of taxpayers by bypassing competitive processes.
How are costs being monitored and controlled under this Cost Plus Fixed Fee contract to mitigate potential overruns?
Cost monitoring under a CPFF contract involves rigorous tracking of incurred costs and ensuring they align with the fixed fee. The government should have mechanisms in place for regular audits, performance reviews, and milestone verification. Effective oversight is critical to prevent contractor inefficiencies from inflating the final price paid by taxpayers.
What is the long-term strategy for acquiring S9G components beyond the current contract's expiration in 2025?
The long-term strategy should consider market research for future component needs, potential for developing new suppliers, or exploring alternative technologies. A proactive approach can prevent future sole-source awards and ensure competitive pricing. Planning now for the post-2025 period is essential for sustained naval readiness and fiscal responsibility.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 3500 TECHNOLOGY DR, MONROEVILLE, PA, 15146
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $349,638,474
Exercised Options: $349,638,474
Current Obligation: $349,638,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-10-14
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2023-09-19
More Contracts from Bechtel Plant Machinery, Inc.
- Naval Reactors — $3.4B (Department of Defense)
- S1B — $3.0B (Department of Defense)
- Naval Reactors — $2.7B (Department of Defense)
- S9G — $2.5B (Department of Defense)
- S1B — $2.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)