Dod's $501.9M Lpd/Lsd Norfolk Contract Awarded to Metro Machine Corp

Contract Overview

Contract Amount: $501,903,738 ($501.9M)

Contractor: Metro Machine Corp.

Awarding Agency: Department of Defense

Start Date: 2009-10-22

End Date: 2017-09-29

Contract Duration: 2,899 days

Daily Burn Rate: $173.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: LPD/LSD NORFOLK MSMO

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $501.9 million to METRO MACHINE CORP. for work described as: LPD/LSD NORFOLK MSMO Key points: 1. Significant contract value of over $500 million for ship maintenance. 2. METRO MACHINE CORP. secured this award through full and open competition. 3. The contract spans nearly 8 years, indicating a long-term need. 4. This falls under the Ship Building and Repairing sector, crucial for naval readiness.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. The award fee structure incentivizes performance but requires robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds are being utilized for essential naval maintenance, with the competitive nature aiming to ensure efficient use of these funds.

Public Impact

Ensures continued operational readiness of LPD/LSD vessels. Supports jobs within the shipbuilding and repair industry. Contributes to the U.S. Navy's strategic capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPAF contract type can lead to cost overruns.
Long contract duration increases risk of scope creep or changing requirements.
Lack of small business participation noted.

Positive Signals

Awarded through full and open competition.
Addresses critical naval maintenance needs.
Potential for performance incentives through award fee.

Sector Analysis

This contract is within the Ship Building and Repairing sector, which is vital for maintaining the U.S. Navy's fleet. Spending in this area is directly tied to national defense and operational readiness.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or potentially as subcontractors. Further investigation may be needed to understand if opportunities were missed.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates strong government oversight to manage costs and ensure contractor performance aligns with award fee criteria. Regular performance reviews are critical.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Award Fee (CPAF) contract type.
Long contract duration (nearly 8 years).
No reported small business participation.
Potential for performance-related cost increases.
Requires robust government oversight for cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $501.9 million to METRO MACHINE CORP.. LPD/LSD 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 $501.9 million.

What is the period of performance?

Start: 2009-10-22. End: 2017-09-29.

What was the average award fee paid to Metro Machine Corp. over the contract's life, and how did it compare to the target fee?

The average award fee paid would provide insight into the contractor's performance relative to the government's expectations. A consistently high award fee suggests effective execution and value, while a low fee might indicate performance issues or overly stringent criteria. Comparing this to the target fee is crucial for understanding the financial impact of performance incentives.

Were there any significant cost variances or overruns associated with this Cost Plus Award Fee contract, and what were the primary drivers?

Investigating cost variances is essential for a CPAF contract. Understanding if the final cost significantly exceeded the initial estimates, and identifying the reasons (e.g., unforeseen technical challenges, scope changes, material cost fluctuations), helps assess the government's ability to control spending and the contractor's cost management effectiveness.

How did the final cost of this contract compare to the estimated cost for similar LPD/LSD maintenance contracts awarded through full and open competition?

Benchmarking the final cost against similar contracts provides a critical measure of value for money. If this contract's cost was significantly higher, it could indicate inefficiencies, higher overheads for Metro Machine Corp., or less competitive pricing than anticipated, despite the full and open competition.

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: N0002405R4401

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $501,903,738

Exercised Options: $501,903,738

Current Obligation: $501,903,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline