DoD's $68.2M Bataan PMA Contract Awarded to BAE Systems Amidst Full and Open Competition
Contract Overview
Contract Amount: $68,228,479 ($68.2M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-07
End Date: 2018-10-15
Contract Duration: 403 days
Daily Burn Rate: $169.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF USS BATAAN (LHD 5) FY17 PHASED MAINTENANCE AVAILABILITY (PMA)
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: IGF::CT::IGF USS BATAAN (LHD 5) FY17 PHASED MAINTENANCE AVAILABILITY (PMA) Key points: 1. The contract value of $68.2M for phased maintenance availability is significant for ship repair. 2. BAE Systems Maritime Solutions, a major player, secured this contract through full and open competition. 3. Potential risks include schedule delays or cost overruns in complex ship maintenance. 4. The sector is dominated by large, specialized maritime repair firms.
Value Assessment
Rating: good
The contract value of $68.2M for a 403-day maintenance period appears reasonable given the scope of phased maintenance availability for a naval vessel. Benchmarking against similar complex ship repair contracts 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, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified bidders can participate.
Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for the essential maintenance of naval assets.
Public Impact
Ensures the operational readiness of the USS Bataan (LHD 5), a critical naval asset. Supports jobs in the maritime repair industry, particularly in Virginia. Demonstrates the Department of the Navy's commitment to maintaining its fleet through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep impacting final cost.
- Dependence on a single contractor for critical maintenance.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Clear delivery order with defined start and end dates.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is characterized by large, complex projects requiring specialized expertise and facilities. Spending in this sector is driven by defense needs and fleet modernization.
Small Business Impact
While the prime contractor is BAE Systems, a large corporation, the contract may offer subcontracting opportunities for small businesses in specialized areas of ship repair and maintenance.
Oversight & Accountability
The Department of the Navy's contracting process, including the use of full and open competition, provides a degree of oversight. Further oversight would involve monitoring contract performance and adherence to schedule and quality standards.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single large entity.
- Potential for unforeseen technical challenges in ship repair.
- Long duration of the maintenance period.
- Dependence on specific skilled labor availability.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. IGF::CT::IGF USS BATAAN (LHD 5) FY17 PHASED MAINTENANCE AVAILABILITY (PMA)
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $68.2 million.
What is the period of performance?
Start: 2017-09-07. End: 2018-10-15.
What is the historical cost performance of BAE Systems Maritime Solutions on similar phased maintenance availability contracts?
Historical cost performance data for BAE Systems Maritime Solutions on similar contracts is crucial for a comprehensive value assessment. Analyzing past projects can reveal trends in cost overruns or savings, efficiency, and adherence to budget. This information would help determine if the current $68.2M award is competitive and reflects realistic cost expectations for the scope of work.
What are the specific risks associated with the phased maintenance availability for the USS Bataan (LHD 5) that could impact the firm-fixed-price contract?
Specific risks for this PMA could include unforeseen structural issues discovered during maintenance, availability of specialized parts, or labor shortages, all of which could lead to delays. While the firm-fixed-price contract aims to cap costs, significant unforeseen issues might necessitate contract modifications or claims, impacting the overall value and schedule. The complexity of modern naval vessels often presents unique maintenance challenges.
How effectively does the full and open competition process ensure optimal taxpayer value for complex naval ship maintenance?
Full and open competition is designed to foster a competitive environment, driving down prices and encouraging innovation. For complex naval ship maintenance, this process allows multiple qualified contractors to bid, theoretically leading to the best value for taxpayers. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to manage the awarded contract to ensure quality and timely delivery.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002415R4405
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $68,498,289
Exercised Options: $68,228,479
Current Obligation: $68,228,479
Subaward Activity
Number of Subawards: 162
Total Subaward Amount: $35,042,285
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002416D4411
IDV Type: IDC
Timeline
Start Date: 2017-09-07
Current End Date: 2018-10-15
Potential End Date: 2018-10-15 00:00:00
Last Modified: 2020-03-27
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