Navy Awards $1.23B for Expeditionary Fast Transport (EPF) 13 to Austal USA
Contract Overview
Contract Amount: $1,234,361,803 ($1.2B)
Contractor: Austal USA, LLC
Awarding Agency: Department of Defense
Start Date: 2018-10-16
End Date: 2030-05-29
Contract Duration: 4,243 days
Daily Burn Rate: $290.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EXPEDITIONARY FAST TRANSPORT (EPF) 13
Place of Performance
Location: MOBILE, MOBILE County, ALABAMA, 36602
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $1.23 billion to AUSTAL USA, LLC for work described as: EXPEDITIONARY FAST TRANSPORT (EPF) 13 Key points: 1. Contract value of $1.23 billion for a single vessel. 2. Austal USA, LLC is the sole awardee. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Shipbuilding and Repairing sector, with a focus on naval vessels.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for costs to exceed initial estimates, potentially impacting overall value. Benchmarking against similar complex naval vessel construction is difficult without more detailed cost breakdowns.
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. However, the specific award to Austal USA, LLC for EPF 13 implies they were the most advantageous offer, impacting price discovery for this specific vessel.
Taxpayer Impact: Taxpayer funds are allocated for the construction of a critical naval asset. The CPFF structure necessitates close monitoring to ensure cost efficiency and prevent unnecessary expenditure.
Public Impact
Enhances naval capabilities with advanced transport and medical support. Supports military readiness and rapid deployment of personnel and equipment. Contributes to the shipbuilding industry and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (until 2030) increases exposure to economic fluctuations.
- No explicit mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical need for expeditionary capabilities.
- Long-term contract provides stability for the contractor.
Sector Analysis
The shipbuilding and repairing sector is capital-intensive and subject to long production cycles. Naval vessel construction, like the EPF, often involves complex engineering and high material costs, with significant government oversight.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement in the supply chain.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPFF contract type requires diligent monitoring of costs and performance to ensure accountability and value for taxpayer money.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No explicit small business participation mentioned.
- Potential for cost overruns.
- Lack of detailed cost breakdown for benchmarking.
Tags
ship-building-and-repairing, department-of-defense, al, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.23 billion to AUSTAL USA, LLC. EXPEDITIONARY FAST TRANSPORT (EPF) 13
Who is the contractor on this award?
The obligated recipient is AUSTAL USA, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $1.23 billion.
What is the period of performance?
Start: 2018-10-16. End: 2030-05-29.
What is the projected cost per unit for the EPF 13, and how does it compare to previous EPF vessels?
The total contract value is $1.23 billion for one vessel. Without a breakdown of the fixed fee and the estimated cost, a precise per-unit cost is not available. Comparing this to previous EPF vessels would require access to their contract details and final costs, which are not provided here. This lack of transparency makes direct cost benchmarking challenging.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this naval vessel?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government absorbs most cost overruns. This can lead to the final price exceeding initial estimates. Effective oversight is crucial to mitigate this risk by scrutinizing costs and ensuring efficient project execution.
How does the full and open competition process ensure the best value for the taxpayer in this shipbuilding contract?
Full and open competition allows any interested and qualified contractor to submit a bid, fostering a competitive environment. This process is intended to drive down prices and encourage innovation, theoretically leading to the best value. However, the effectiveness depends on the clarity of requirements and the evaluation criteria used by the Department of the Navy.
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: N0002418R2227
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Austal Limited
Address: 1 DUNLAP DR, MOBILE, AL, 36602
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $1,870,723,582
Exercised Options: $1,869,118,582
Current Obligation: $1,234,361,803
Actual Outlays: $51,618,109
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-16
Current End Date: 2030-05-29
Potential End Date: 2030-05-29 00:00:00
Last Modified: 2025-12-09
More Contracts from Austal USA, LLC
- Basic Contract — $4.5B (Department of Defense)
- Construction of LCS Flight 0+ Ship — $2.8B (Department of Defense)
- Phase I: Preliminary Concept Design for the Joint High Speed Vessel — $1.7B (Department of Defense)
- Offshore Patrol Cutter (OPC) Stage 2 Contract: Detailed Design and Production (DD&P) of 11 Opcs — $1.4B (Department of Homeland Security)
- T-Agos 25 Class - Ship 1 — $631.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)