Navy awards $22.3M for USS Albany (SSN 753) DCMAV services, a sole-source contract

Contract Overview

Contract Amount: $22,257,301 ($22.3M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2011-02-28

End Date: 2011-07-30

Contract Duration: 152 days

Daily Burn Rate: $146.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS ALBANY (SSN 753) DCMAV PLANNING AND EXECUTION

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to HUNTINGTON INGALLS INC for work described as: USS ALBANY (SSN 753) DCMAV PLANNING AND EXECUTION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 152 days suggests a focused scope of work. 3. Fixed-price contract type aims to control costs for the government. 4. The contractor, Huntington Ingalls Inc., is a major player in shipbuilding and repair. 5. This award falls under the Ship Building and Repairing NAICS code. 6. The contract value is significant within its specific service category.

Value Assessment

Rating: fair

The contract value of $22.3 million for DCMAV planning and execution for the USS Albany (SSN 753) appears to be a substantial investment. Without specific benchmarks for DCMAV services on similar vessels or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, given the sole-source nature, there's a potential for inflated pricing compared to a competitive environment. The fixed-price structure provides some cost certainty, but the overall value is contingent on the contractor's efficiency and the necessity of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of competition here suggests that either only one entity possessed the unique capabilities required, or the procurement strategy did not prioritize competition. This can lead to higher prices and reduced innovation.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the best possible price for these essential services.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness and maintenance of the USS Albany (SSN 753). Services delivered include DCMAV (Defense Contract Management Agency Verification) planning and execution, crucial for oversight and quality assurance. The geographic impact is likely concentrated around naval facilities where the USS Albany is stationed or undergoing maintenance. Workforce implications include employment for skilled personnel at Huntington Ingalls Inc. and potentially its subcontractors involved in the DCMAV process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may result in higher unit costs.
Contract duration is relatively short, raising questions about the full scope of long-term needs.

Positive Signals

Fixed-price contract type offers cost predictability.
Contractor is a recognized leader in shipbuilding and repair.
Services are critical for naval asset readiness.

Sector Analysis

The shipbuilding and repair sector is a critical component of the defense industrial base, characterized by high barriers to entry, specialized labor, and significant capital investment. Contracts within this sector often involve complex, long-term projects. The $22.3 million award for DCMAV services, while substantial, represents a fraction of the overall cost of shipbuilding or major repair. Comparable spending benchmarks are difficult to establish without knowing the specific scope of DCMAV activities, but this amount is typical for specialized support services on naval vessels.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the sole-source nature and the likely specialized requirements for DCMAV planning and execution on a naval vessel, it is improbable that significant subcontracting opportunities would be directed towards small businesses unless explicitly mandated. The primary contractor, Huntington Ingalls Inc., is a large corporation, suggesting that the direct economic impact on the small business ecosystem from this specific award may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Navy and the Defense Contract Management Agency (DCMA). As a definitive contract, it is subject to standard government oversight mechanisms, including performance monitoring and financial audits. The fixed-price nature provides a degree of accountability for the contractor to deliver services within the agreed budget. Transparency is limited due to the sole-source award, but contract performance data is typically reported through federal procurement databases.

Related Government Programs

Naval Ship Maintenance and Repair
Defense Contract Management Agency Services
Submarine Maintenance
Ship Building and Repairing

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Contractor performance risk (though generally low for HII)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to HUNTINGTON INGALLS INC. USS ALBANY (SSN 753) DCMAV PLANNING AND EXECUTION

Who is the contractor on this award?

The obligated recipient is HUNTINGTON INGALLS 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 $22.3 million.

What is the period of performance?

Start: 2011-02-28. End: 2011-07-30.

What is the specific scope of 'DCMAV Planning and Execution' for the USS Albany (SSN 753)?

DCMAV stands for Defense Contract Management Agency Verification. This typically involves the planning and execution of verification activities to ensure that a contractor is meeting the terms and conditions of their contract, including quality standards, schedule adherence, and cost controls. For the USS Albany (SSN 753), this likely entails overseeing maintenance, repair, or upgrade work performed by Huntington Ingalls Inc. or its subcontractors. The planning phase would involve defining the scope, methodology, and schedule for these verification tasks, while execution involves carrying out the inspections, audits, and assessments. The specific details would be outlined in the contract's Statement of Work (SOW).

How does the $22.3 million contract value compare to similar DCMAV services for other naval vessels?

Direct comparison of this $22.3 million contract value for DCMAV services is challenging without access to detailed historical data on similar contracts for other naval vessels. The cost of DCMAV services can vary significantly based on the size and class of the vessel, the complexity of the work being performed (e.g., routine maintenance vs. major overhaul), the duration of the contract, and the specific verification requirements. Given that the USS Albany is a nuclear-powered attack submarine (SSN), the scope and complexity of its maintenance and the associated oversight are likely higher than for smaller surface vessels. The sole-source nature also complicates direct value comparisons.

What are the primary risks associated with a sole-source award for this type of service?

The primary risks associated with a sole-source award for DCMAV services include: 1. **Higher Cost:** Without competition, the contractor may charge a premium, leading to potentially inflated prices compared to what could be achieved through a competitive bidding process. 2. **Reduced Innovation:** The lack of competitive pressure can disincentivize the contractor from seeking innovative or more cost-effective solutions. 3. **Potential for Complacency:** The contractor might become complacent in performance or quality assurance, knowing they are the only option. 4. **Limited Transparency:** Sole-source awards offer less transparency into the pricing structure and justification for the contract's value. 5. **Dependency:** The government becomes dependent on a single provider, which can be problematic if performance issues arise or if the contractor faces financial instability.

What is Huntington Ingalls Inc.'s track record with the Department of Defense, particularly in shipbuilding and repair?

Huntington Ingalls Industries (HII), the parent company of Huntington Ingalls Inc., is a major U.S. defense contractor and the sole designer, builder, and refueler of U.S. Navy aircraft carriers and one of two providers of U.S. Navy destroyers and submarines. They have an extensive track record with the Department of Defense, particularly in shipbuilding and complex repair services for naval vessels. Their performance history is generally considered strong, given their critical role in maintaining the U.S. fleet. However, like any large contractor, they have experienced contract disputes, cost overruns, and schedule delays on various projects over the years, which are closely monitored by the DoD.

How does this contract fit into the broader context of U.S. Navy submarine maintenance and modernization spending?

This $22.3 million contract for DCMAV services represents a component of the U.S. Navy's overall spending on submarine maintenance, repair, and modernization. Submarine upkeep is a critical and costly endeavor due to the complexity of nuclear propulsion, advanced weapon systems, and the demanding operational environment. The Navy allocates significant portions of its budget to ensure the readiness and extend the service life of its submarine fleet. While this specific contract is for oversight services, it is intrinsically linked to the larger maintenance and modernization efforts, which can involve billions of dollars for major overhauls, refuelings, and upgrades across the submarine force.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002411R4300

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 4101 WASHINGTON AVE BLDG 520/3, NEWPORT NEWS, VA, 23607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,257,301

Exercised Options: $22,257,301

Current Obligation: $22,257,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline