Navy Awards $1.22 Billion for USS Boise (SSN 764) Planning to Huntington Ingalls Inc
Contract Overview
Contract Amount: $1,218,462,083 ($1.2B)
Contractor: Huntington Ingalls Inc
Awarding Agency: Department of Defense
Start Date: 2017-10-16
End Date: 2029-09-30
Contract Duration: 4,367 days
Daily Burn Rate: $279.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: USS BOISE (SSN 764) PLANNING
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $1.22 billion to HUNTINGTON INGALLS INC for work described as: USS BOISE (SSN 764) PLANNING Key points: 1. Significant investment in submarine planning, indicating long-term defense strategy. 2. Sole provider for this specific planning phase, raising questions about competition. 3. Long contract duration (2017-2029) suggests complex and extensive planning requirements. 4. High contract value highlights the substantial cost associated with naval shipbuilding.
Value Assessment
Rating: questionable
The contract value of $1.22 billion for planning is substantial. Benchmarking against similar submarine planning contracts is difficult without more specific details on the scope of work, but the overall cost warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific planning phase might have limited the number of actual bidders.
Taxpayer Impact: Taxpayer funds are being utilized for a critical defense asset, with the expectation of value derived from a competitive process.
Public Impact
Impacts national security through investment in submarine fleet modernization. Supports jobs in the shipbuilding and repair sector, particularly at Huntington Ingalls. Potential for technological advancements in submarine design and construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term planning contracts.
- Dependence on a single contractor for critical planning phases.
- Uncertainty in final delivery cost and timeline.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical need for naval fleet readiness.
- Long-term planning ensures strategic alignment.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repairing. Spending benchmarks for submarine planning are highly variable due to complexity and technological requirements, but $1.22 billion is a significant allocation.
Small Business Impact
The data does not indicate any specific subcontracting or set-asides for small businesses in this planning contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The long duration and high value necessitate robust oversight to ensure adherence to scope, budget, and timeline.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Overruns
- Schedule Delays
- Scope Creep
- Contractor Performance Risk
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.22 billion to HUNTINGTON INGALLS INC. USS BOISE (SSN 764) PLANNING
Who is the contractor on this award?
The obligated recipient is HUNTINGTON INGALLS 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 $1.22 billion.
What is the period of performance?
Start: 2017-10-16. End: 2029-09-30.
What specific planning activities are included in this $1.22 billion contract to justify the cost?
The contract likely encompasses preliminary design, engineering studies, risk assessments, and detailed planning for the construction of the USS Boise (SSN 764). This includes defining technical specifications, material procurement strategies, and construction methodologies to ensure the submarine meets operational requirements and safety standards.
What are the primary risks associated with a Cost Plus Fixed Fee contract for submarine planning?
A Cost Plus Fixed Fee (CPFF) contract carries risks of cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides some incentive for efficiency. The government bears the risk of cost increases, and careful monitoring is required to prevent scope creep and ensure the fixed fee remains appropriate.
How does this planning contract contribute to the overall effectiveness of the US submarine fleet?
This planning contract is crucial for the effective modernization and expansion of the US submarine fleet. It ensures that new vessels like the USS Boise are designed with the latest technological advancements, strategic requirements, and operational capabilities, thereby maintaining the nation's undersea warfare superiority and deterrence.
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: N0002417R4314
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc
Address: 4101 WASHINGTON AVE, NEWPORT NEWS, VA, 23607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,774,253,487
Exercised Options: $1,744,786,092
Current Obligation: $1,218,462,083
Actual Outlays: $189,917,944
Subaward Activity
Number of Subawards: 1916
Total Subaward Amount: $616,143,543
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-10-16
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-01-08
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