DoD Awards $114.6M Contract for Ship Building and Repair to BAE Systems
Contract Overview
Contract Amount: $114,585,839 ($114.6M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-22
End Date: 2019-06-14
Contract Duration: 539 days
Daily Burn Rate: $212.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF USS OSCAR AUSTIN FY18 DMP
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $114.6 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: IGF::OT::IGF USS OSCAR AUSTIN FY18 DMP Key points: 1. Contract awarded to BAE Systems Maritime Solutions for $114.6M. 2. Full and open competition was utilized for this award. 3. The contract is for ship building and repair services. 4. This award falls under the Ship Building and Repair sector.
Value Assessment
Rating: good
The contract value of $114.6M appears reasonable given the scope of ship building and repair. Benchmarking against similar large-scale naval contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. Multiple bidders likely participated, driving competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense infrastructure, with competition aiming to ensure value for money.
Public Impact
Supports national defense capabilities through maintenance of naval assets. Contributes to the shipbuilding and repair industry in Virginia. Ensures operational readiness of the USS OSCAR AUSTIN.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 539 days may indicate potential for cost overruns if not managed effectively.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
- Potential for scope creep in long-term shipbuilding and repair contracts.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract type helps control costs.
- Supports critical naval infrastructure.
Sector Analysis
This contract falls within the Ship Building and Repair sector, which is a significant part of the defense industrial base. Spending in this sector is often characterized by large, complex contracts with long lead times.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to BAE Systems Maritime Solutions. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy, ensuring adherence to contract terms and performance standards. The definitive contract structure implies a level of established oversight.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy.
- No specific performance metrics provided.
- Potential for scope creep.
- Small business participation not explicitly detailed.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.6 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. IGF::OT::IGF USS OSCAR AUSTIN FY18 DMP
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 $114.6 million.
What is the period of performance?
Start: 2017-12-22. End: 2019-06-14.
What is the historical cost performance of BAE Systems Maritime Solutions on similar shipbuilding and repair contracts?
Historical cost performance data for BAE Systems Maritime Solutions on comparable contracts is crucial for assessing the value of this $114.6M award. Analyzing past projects for cost overruns, efficiency, and adherence to budget would provide a benchmark. This information helps determine if the current contract's pricing is competitive and if the contractor has a track record of delivering within financial expectations.
What specific risks are associated with the 539-day duration of this contract, and how are they being mitigated?
The 539-day duration presents risks such as potential material cost fluctuations, labor availability issues, and unforeseen technical challenges in shipbuilding and repair. Mitigation strategies likely include robust contract clauses for price adjustments, proactive supply chain management, and detailed risk assessment during the planning phase. Effective project management and regular progress reviews are essential to address these risks.
How does the firm fixed price structure ensure effectiveness and value for taxpayer money in this complex shipbuilding contract?
The firm fixed price (FFP) structure aims to ensure effectiveness and value by shifting most of the risk to the contractor, BAE Systems. This incentivizes them to manage costs efficiently and complete the work within the agreed-upon price. For taxpayers, FFP provides cost certainty, minimizing the risk of unexpected increases. However, effectiveness relies on clear contract specifications and diligent oversight to ensure quality standards are met.
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: N0002417R4428
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,916,591
Exercised Options: $114,585,839
Current Obligation: $114,585,839
Actual Outlays: $-12,691,972
Subaward Activity
Number of Subawards: 182
Total Subaward Amount: $65,027,990
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-12-22
Current End Date: 2019-06-14
Potential End Date: 2019-06-14 00:00:00
Last Modified: 2023-02-21
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