Navy Awards $23.4M Contract to BAE Systems for DDG 51 Ship Maintenance
Contract Overview
Contract Amount: $23,433,210 ($23.4M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2017-04-12
End Date: 2018-09-30
Contract Duration: 536 days
Daily Burn Rate: $43.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: DDG 51 POST SHAKEDOWN AVAILABILITY EXECUTION FOR DDG 113 AND 115
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $23.4 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: DDG 51 POST SHAKEDOWN AVAILABILITY EXECUTION FOR DDG 113 AND 115 Key points: 1. Contract awarded to BAE Systems for critical maintenance on DDG 113 and 115. 2. The contract type is Cost Plus Award Fee, indicating potential for performance-based incentives. 3. The duration of the contract is 536 days, suggesting a significant scope of work. 4. The award value is $23.4 million, providing a key data point for financial analysis.
Value Assessment
Rating: good
The contract value of $23.4 million for ship maintenance appears reasonable given the complexity of naval vessel upkeep. Benchmarking against similar availability contracts for DDG-class destroyers would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and good value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense maintenance.
Public Impact
Ensures readiness of critical naval assets (DDG 51 class destroyers). Supports the operational capabilities of the U.S. Navy fleet. Contributes to the maintenance and repair sector of the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee contract type.
- Scope creep could increase the final cost beyond the initial award value.
Positive Signals
- Awarded through full and open competition.
- Supports critical naval readiness.
Sector Analysis
This contract falls within the shipbuilding and repairing sector, specifically for naval vessel maintenance. Spending in this area is crucial for maintaining fleet readiness and national security, with significant government investment annually.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for contract execution and financial management.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee contract type can lead to higher final costs.
- Potential for scope creep impacting budget and schedule.
- Dependence on a single contractor for critical maintenance.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. DDG 51 POST SHAKEDOWN AVAILABILITY EXECUTION FOR DDG 113 AND 115
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO 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 $23.4 million.
What is the period of performance?
Start: 2017-04-12. End: 2018-09-30.
What is the historical cost performance for similar DDG shakedown availability contracts?
Historical data on similar DDG shakedown availability contracts is essential for a comprehensive value assessment. Analyzing past performance, including cost overruns or savings, and the effectiveness of award fee structures in similar procurements can provide valuable insights into the reasonableness of the current $23.4 million award and identify potential risks or efficiencies.
How does the awarded price compare to independent cost estimates for this type of maintenance?
Comparing the awarded price of $23.4 million to independent government or third-party cost estimates is crucial for assessing value. If the awarded price significantly deviates from estimates, it could indicate issues with the bidding process, the scope definition, or the contractor's pricing strategy, raising concerns about potential overpayment or underperformance.
What are the key performance metrics and award fee criteria for this contract?
Understanding the key performance metrics and award fee criteria is vital for evaluating the effectiveness of this Cost Plus Award Fee contract. These criteria dictate how BAE Systems' performance will be measured and how much of the award fee they can earn, directly impacting the final cost and ensuring the maintenance meets the Navy's readiness standards.
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: N0002416R2310
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2205 E BELT ST, SAN DIEGO, CA, 92113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,302,901
Exercised Options: $27,208,636
Current Obligation: $23,433,210
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $8,611,791
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-04-12
Current End Date: 2018-09-30
Potential End Date: 2022-01-06 00:00:00
Last Modified: 2021-03-30
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