Navy's $199M Ship Repair Contract Awarded to National Steel and Shipbuilding Company Under Full and Open Competition

Contract Overview

Contract Amount: $199,252,791 ($199.3M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2018-08-14

End Date: 2022-11-18

Contract Duration: 1,557 days

Daily Burn Rate: $128.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACCOMPLISHMENT OF AVAIL

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $199.3 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: ACCOMPLISHMENT OF AVAIL Key points: 1. Significant contract value of $199.25 million for ship building and repair. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract duration of 1557 days indicates a long-term commitment. 4. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive indicator for cost control. Benchmarking against similar ship repair contracts would provide a clearer picture of value, but the competitive award suggests a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. This method allows all qualified contractors to bid, fostering a competitive environment.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for the essential ship repair services.

Public Impact

Ensures readiness of naval assets through critical repair and maintenance. Supports a major shipbuilding and repair facility, contributing to the defense industrial base. Provides employment opportunities within the shipbuilding sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope changes significantly.
Dependence on a single contractor for a long duration.
Risk of supply chain disruptions impacting repair timelines.

Positive Signals

Competitive award process likely secured a fair price.
Firm Fixed Price contract offers cost certainty.
Long-term contract supports stable operations for the contractor.

Sector Analysis

This contract falls within the Defense sector, specifically ship building and repair. Spending in this area is critical for maintaining naval fleet readiness. Benchmarks for similar large-scale repair contracts can vary significantly based on ship type and complexity.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses under this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award under full and open competition suggests a structured procurement process. Oversight would focus on contract performance, adherence to schedule, and quality of repairs to ensure accountability.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration may lead to contractor complacency.
Potential for scope creep and change orders impacting final cost.
Reliance on a single contractor for critical naval asset maintenance.
Vulnerability to unforeseen economic or geopolitical events affecting supply chains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $199.3 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. ACCOMPLISHMENT OF AVAIL

Who is the contractor on this award?

The obligated recipient is NATIONAL STEEL AND SHIPBUILDING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $199.3 million.

What is the period of performance?

Start: 2018-08-14. End: 2022-11-18.

What was the basis for the 'full and open competition' determination, and were there any specific requirements that limited the pool of potential bidders?

The determination for 'full and open competition' implies that the solicitation was made available to all responsible sources, and no restrictions were placed on the number or types of firms that could submit offers. Specific requirements would typically relate to the technical capabilities, experience, and capacity needed for complex ship repair, which are standard for such large contracts.

How does the awarded amount of $199.25 million compare to the initial estimated cost or budget for this ship repair project?

Without the initial estimated cost or budget, a direct comparison is not possible. However, the fact that it was awarded under full and open competition suggests that the final negotiated price was deemed competitive and reasonable by the Department of the Navy. Further review of pre-award documentation would be necessary for a precise value assessment.

What are the key performance indicators (KPIs) being tracked for this contract to ensure the effectiveness of the ship repair services?

Key performance indicators likely include on-time delivery of repairs, adherence to quality standards (e.g., defect rates, rework required), cost control within the fixed price, and overall vessel availability post-repair. The Navy would monitor these metrics to ensure the contractor meets contractual obligations and maintains the operational readiness of the vessels.

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: N0002418R4439

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2798 HARBOR DR, SAN DIEGO, CA, 92113

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $204,252,791

Exercised Options: $199,252,791

Current Obligation: $199,252,791

Actual Outlays: $18,867,934

Subaward Activity

Number of Subawards: 269

Total Subaward Amount: $5,620,516,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline