DoD's $23.7M Contract for USS Ramage Ship Repair Awarded to Huntington Ingalls Inc
Contract Overview
Contract Amount: $23,674,820 ($23.7M)
Contractor: Huntington Ingalls Incorporated
Awarding Agency: Department of Defense
Start Date: 2016-09-12
End Date: 2017-12-31
Contract Duration: 475 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF USS RAMAGE (DDG 61) ESRA
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567
Plain-Language Summary
Department of Defense obligated $23.7 million to HUNTINGTON INGALLS INCORPORATED for work described as: IGF::OT::IGF USS RAMAGE (DDG 61) ESRA Key points: 1. The contract value of $23.7 million is for ship repair services. 2. Huntington Ingalls Incorporated, a major defense contractor, secured the award. 3. The award was made under full and open competition. 4. The contract type is Firm Fixed Price, indicating price certainty.
Value Assessment
Rating: good
The contract value appears reasonable for specialized ship repair services, especially for a naval destroyer. Benchmarking against similar complex naval maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award utilized full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple vendors can participate.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.
Public Impact
Ensures the operational readiness of a key naval asset, the USS Ramage. Supports the shipbuilding and repair sector, contributing to industry capacity. Maintains the U.S. Navy's fleet capabilities through essential maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex ship repair.
- Dependence on a single contractor for specific expertise.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition promotes competitive pricing.
Sector Analysis
This contract falls within the shipbuilding and repair sector, which is critical for national defense. Spending in this area can fluctuate based on fleet maintenance needs and modernization programs.
Small Business Impact
The data indicates the award went to Huntington Ingalls Incorporated, a large business. There is no explicit information on small business participation in this specific contract, which warrants further investigation.
Oversight & Accountability
The award was made by the Department of the Navy, implying standard procurement oversight. The use of a definitive contract suggests a structured process, but detailed oversight reports would confirm accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep in repair contracts.
- Limited visibility into small business subcontracting.
- Long-term implications of aging vessel maintenance.
- Dependence on specific contractor capabilities.
Tags
ship-building-and-repairing, department-of-defense, ms, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to HUNTINGTON INGALLS INCORPORATED. IGF::OT::IGF USS RAMAGE (DDG 61) ESRA
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 $23.7 million.
What is the period of performance?
Start: 2016-09-12. End: 2017-12-31.
What is the typical cost range for similar ship repair services on naval destroyers?
The cost range for similar ship repair services on naval destroyers can vary significantly based on the scope of work, vessel class, and shipyard location. However, contracts for major overhauls or modernization efforts can range from tens to hundreds of millions of dollars. This $23.7 million contract appears to be for specific repair tasks rather than a full overhaul, making it potentially within a reasonable range if the scope is well-defined.
What are the potential risks associated with extending the service life of naval vessels through repair contracts?
Extending the service life of naval vessels through repair contracts carries risks such as unforeseen structural issues discovered during maintenance, which can escalate costs and timelines. There's also the risk of technological obsolescence if repairs don't adequately modernize systems. Furthermore, reliance on specific repair contractors can create dependencies and potential bottlenecks in fleet readiness if those contractors face capacity or performance issues.
How effectively does the 'full and open competition' method ensure value for money in complex defense contracts like this?
Full and open competition is designed to maximize value for money by encouraging multiple qualified vendors to bid, thereby driving down prices through market forces. For complex defense contracts, its effectiveness depends on the clarity of the solicitation, the ability of diverse companies to bid realistically, and the evaluation criteria used. While it generally promotes competition, the specialized nature of naval repair can sometimes limit the pool of truly capable bidders.
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: N0002416R4402
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
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: $23,822,720
Exercised Options: $23,674,820
Current Obligation: $23,674,820
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $2,628,804
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-12
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2017-12-01
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)