DoD Awards $307M Life Cycle Engineering Contract to Huntington Ingalls for LPD 17
Contract Overview
Contract Amount: $307,322,851 ($307.3M)
Contractor: Huntington Ingalls Incorporated
Awarding Agency: Department of Defense
Start Date: 2015-12-16
End Date: 2023-09-21
Contract Duration: 2,836 days
Daily Burn Rate: $108.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF LPD 17 LIFE CYCLE ENGINEERING AND SUPPORT
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567
Plain-Language Summary
Department of Defense obligated $307.3 million to HUNTINGTON INGALLS INCORPORATED for work described as: IGF::CT::IGF LPD 17 LIFE CYCLE ENGINEERING AND SUPPORT Key points: 1. Contract awarded to a single, large defense contractor. 2. Significant value suggests a critical, long-term need. 3. Lack of competition raises concerns about price discovery. 4. Sector focus on shipbuilding and repair.
Value Assessment
Rating: questionable
The contract value of $307M over 8 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair and reasonable pricing compared to potential alternatives or market rates for similar engineering and support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best value.
Taxpayer Impact: The lack of competition on this large contract likely results in a higher cost to taxpayers than if multiple bids were solicited.
Public Impact
Ensures continued support for the LPD 17 class of ships, vital for naval operations. Supports jobs in the shipbuilding and repair sector, particularly in Mississippi. Potential for cost overruns due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Critical support for naval assets
- Long-term contract duration
Sector Analysis
This contract falls within the shipbuilding and repair sector, a critical component of national defense. Spending benchmarks in this area are often high due to the complexity and specialized nature of naval vessel construction and maintenance.
Small Business Impact
The contract was awarded to Huntington Ingalls Incorporated, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure costs are managed effectively and that the services provided meet the required standards for the LPD 17 class.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize higher costs.
- Lack of transparency in pricing justification.
- Potential for scope creep without strict oversight.
Tags
ship-building-and-repairing, department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $307.3 million to HUNTINGTON INGALLS INCORPORATED. IGF::CT::IGF LPD 17 LIFE CYCLE ENGINEERING AND SUPPORT
Who is the contractor on this award?
The obligated recipient is HUNTINGTON INGALLS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $307.3 million.
What is the period of performance?
Start: 2015-12-16. End: 2023-09-21.
What is the justification for the sole-source award of this significant contract?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For complex, specialized systems like naval vessels, this could be due to proprietary knowledge, unique capabilities, or urgent needs that preclude a competitive process. A thorough review of the justification is necessary to ensure it is valid and that competition was not feasible.
How will the cost-plus fixed fee structure be monitored to prevent cost overruns?
Cost-plus fixed fee contracts require robust oversight to manage costs effectively. The Department of the Navy must implement stringent financial controls, regular audits, and performance reviews to ensure that costs are reasonable and allocable. Clear milestones and reporting requirements are essential to track progress and identify potential cost escalations early.
What is the long-term strategic value of this engineering and support contract beyond immediate operational needs?
This contract provides essential life cycle engineering and support, ensuring the continued operational readiness and effectiveness of the LPD 17 class of ships. Beyond immediate needs, it contributes to maintaining critical naval capabilities, fosters specialized technical expertise within the contractor, and supports the long-term sustainment strategy for a key asset class.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002415R2415
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc
Address: 1000 ACCESS RD, PASCAGOULA, MS, 39567
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $332,599,416
Exercised Options: $332,599,416
Current Obligation: $307,322,851
Actual Outlays: $1,375,912
Subaward Activity
Number of Subawards: 192
Total Subaward Amount: $58,171,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-16
Current End Date: 2023-09-21
Potential End Date: 2023-09-21 00:00:00
Last Modified: 2025-09-23
More Contracts from Huntington Ingalls Incorporated
- Detail Design and Construction of LPD 17 Class Ship (LPD 22) — $10.0B (Department of Defense)
- Construction of DDG 51 Ships FY23-27 — $6.9B (Department of Defense)
- Fy18-Fy22 DDG 51 Class Ship Construction — $6.7B (Department of Defense)
- LPD 30 Lltm — $4.6B (Department of Defense)
- Federal Contract — $3.8B (Department of Defense)
View all Huntington Ingalls Incorporated federal contracts →
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)