Navy Awards $663M for Ship-to-Shore Connector DD&C to Textron Systems Corp
Contract Overview
Contract Amount: $663,269,565 ($663.3M)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2012-07-06
End Date: 2025-09-29
Contract Duration: 4,833 days
Daily Burn Rate: $137.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: DETAIL DESIGN AND CONSTRUCTION (DD&C) OF SHIP TO SHORE CONNECTOR
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $663.3 million to TEXTRON SYSTEMS CORP for work described as: DETAIL DESIGN AND CONSTRUCTION (DD&C) OF SHIP TO SHORE CONNECTOR Key points: 1. Significant investment in naval infrastructure with a large contract value. 2. Textron Systems Corp. is the sole awardee, raising questions about competition. 3. Long contract duration (2012-2025) suggests a complex, multi-year project. 4. Fixed Price Incentive contract type aims to balance cost control with performance.
Value Assessment
Rating: fair
The contract value of $663.3M for a definitive contract is substantial. Benchmarking against similar complex naval construction projects is difficult without more specific cost breakdowns, but the scale suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, Textron Systems Corp. is the sole awardee, suggesting they were the most competitive or uniquely qualified.
Taxpayer Impact: Taxpayer funds are being used for a critical defense capability, with the expectation of value derived from the completed connector.
Public Impact
Enhances amphibious assault capabilities for the U.S. Navy. Supports the projection of power and logistical support for ground forces. Represents a significant technological advancement in naval connector systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite full and open competition.
- Long contract duration may indicate potential for cost overruns.
- Fixed Price Incentive contract requires careful monitoring of performance and costs.
Positive Signals
- Addresses a critical military requirement.
- Utilizes a competitive bidding process.
- Contract aims to incentivize performance and cost efficiency.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, specifically for naval vessel components. Spending benchmarks in this specialized area are highly variable due to unique design and construction requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this large, definitive contract. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
The definitive contract award and long duration suggest ongoing oversight by the Department of the Navy. Performance metrics and financial reporting will be crucial for accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Limited visibility into specific performance metrics and cost drivers.
- Sole awardee raises questions about the extent of competition.
- Complexity of the technology may introduce unforeseen development challenges.
Tags
ship-building-and-repairing, department-of-defense, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $663.3 million to TEXTRON SYSTEMS CORP. DETAIL DESIGN AND CONSTRUCTION (DD&C) OF SHIP TO SHORE CONNECTOR
Who is the contractor on this award?
The obligated recipient is TEXTRON SYSTEMS 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 $663.3 million.
What is the period of performance?
Start: 2012-07-06. End: 2025-09-29.
What was the competitive landscape like during the bidding process, and why was Textron Systems Corp. the sole awardee?
While the contract was awarded under 'full and open competition,' the fact that Textron Systems Corp. is the sole awardee warrants further investigation. This could indicate that Textron offered the most technically superior solution, the most competitive price, or possessed unique capabilities essential for this complex project. Understanding the specific evaluation criteria and the number of proposals received would clarify the competitive dynamics.
What are the key performance indicators and cost control mechanisms within this Fixed Price Incentive contract?
The Fixed Price Incentive (FPI) contract type implies that both the contractor and the government share in any cost savings or overruns beyond target levels. Key performance indicators would likely relate to the connector's operational readiness, durability, and timely delivery. Robust oversight is needed to monitor progress against these metrics and ensure cost targets are met, mitigating potential taxpayer risk from cost escalations.
How does the Ship to Shore Connector contribute to overall naval operational effectiveness and what is its projected lifespan?
The Ship to Shore Connector is designed to significantly enhance amphibious capabilities, allowing for faster and more efficient transfer of personnel and equipment from ship to shore. Its projected lifespan, implied by the long contract duration and the nature of military hardware, is likely decades. This investment aims to modernize a critical component of naval power projection and sustainment operations.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002411R2401
Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 19401 CHEF MENTEUR HWY, NEW ORLEANS, LA, 70129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $664,812,196
Exercised Options: $663,663,061
Current Obligation: $663,269,565
Actual Outlays: $30,029,849
Subaward Activity
Number of Subawards: 514
Total Subaward Amount: $206,256,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-07-06
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-09-30
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