DoD's $90.7M Ship Repair Contract with Metro Machine Corp. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $90,677,095 ($90.7M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2010-01-14
End Date: 2015-10-13
Contract Duration: 2,098 days
Daily Burn Rate: $43.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: FFG NORFOLK MSMO
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $90.7 million to METRO MACHINE CORP. for work described as: FFG NORFOLK MSMO Key points: 1. Significant contract value of $90.7 million for ship building and repair. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 4. The sector is Ship Building and Repair, a critical component of national defense infrastructure.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure allows for contractor reimbursement of costs plus a fee based on performance. While intended to incentivize efficiency, this structure can sometimes lead to costs exceeding initial estimates if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers compared to sole-source or limited competition contracts.
Public Impact
Ensures readiness of naval vessels through essential repair and maintenance services. Supports jobs within the shipbuilding and repair industry, contributing to the local and national economy. The contract's duration and value indicate a substantial commitment to maintaining naval fleet capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may lead to cost overruns.
- Long contract duration (2010-2015) requires ongoing oversight.
- Lack of specific performance metrics in provided data makes assessing award fee justification difficult.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
- Contractor has experience in ship building and repair.
Sector Analysis
This contract falls within the Ship Building and Repair sector, which is vital for maintaining the operational readiness of the U.S. Navy's fleet. Spending in this sector is directly tied to defense budgets and strategic priorities.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, as the procuring agency, is responsible for oversight. The Cost Plus Award Fee structure necessitates robust monitoring of costs and performance to ensure value for taxpayer dollars.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of transparency on specific performance metrics for award fee.
- Long contract duration requires sustained oversight.
- No indication of small business subcontracting participation.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $90.7 million to METRO MACHINE CORP.. FFG NORFOLK MSMO
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 $90.7 million.
What is the period of performance?
Start: 2010-01-14. End: 2015-10-13.
What were the specific performance metrics used to determine the award fee for Metro Machine Corp. under this contract?
The provided data does not specify the performance metrics used for the award fee. Typically, these metrics would relate to factors such as on-time delivery, quality of work, adherence to budget, and responsiveness to requirements. Without these details, it's difficult to fully assess the effectiveness of the incentive structure or the contractor's performance.
How did the final cost compare to the initial estimated cost for this Cost Plus Award Fee contract?
The data provided does not include information on the final cost versus the estimated cost for this contract. Cost Plus Award Fee contracts are designed to reimburse allowable costs plus a fee that can be adjusted based on performance. A thorough review would require access to the contract's financial execution data to determine if costs were well-managed and if the award fee was justified.
What was the competitive landscape like for this specific ship repair requirement, and did other bidders offer significantly different pricing or technical approaches?
The contract was awarded under 'Full and Open Competition,' indicating multiple bids were likely received. However, the specific details of competing bids, including pricing and technical proposals, are not available in this dataset. Understanding the range of offers would provide better insight into the competitiveness of the final award and the value achieved.
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
Solicitation ID: N0002405R4415
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, 23523
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $90,677,095
Exercised Options: $90,677,095
Current Obligation: $90,677,095
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-01-14
Current End Date: 2015-10-13
Potential End Date: 2015-10-13 00:00:00
Last Modified: 2017-03-22
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