DoD's $91.6M Contract for USS STETHEM EDSRA with BAE Systems: Full and Open Competition
Contract Overview
Contract Amount: $91,559,506 ($91.6M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-07
End Date: 2021-03-19
Contract Duration: 559 days
Daily Burn Rate: $163.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS STETHEM EDSRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $91.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS STETHEM EDSRA Key points: 1. Contract awarded to BAE Systems for ship maintenance and repair. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, indicating significant investment in naval assets. 4. The sector is Ship Building and Repairing, crucial for national defense.
Value Assessment
Rating: good
The contract value of $91.6 million for ship maintenance appears reasonable given the scope of work 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 use of full and open competition suggests that multiple vendors had the opportunity to bid, which typically drives better pricing and value. The award to BAE Systems indicates they offered the best value proposition.
Taxpayer Impact: Taxpayer funds are being used for essential defense maintenance, ensuring the operational readiness of naval assets. Competitive bidding aims to maximize the value of this expenditure.
Public Impact
Ensures the operational readiness of a key naval asset, the USS STETHEM. Supports jobs within the shipbuilding and repair industry, particularly in California. Demonstrates the Department of Defense's commitment to maintaining its fleet through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term maintenance contracts.
Positive Signals
- Awarded under full and open competition.
- Contract duration of 559 days indicates a comprehensive scope of work.
- Firm Fixed Price contract type helps control costs.
Sector Analysis
The Ship Building and Repairing sector is vital for national security and involves complex, high-value contracts. Spending in this area is benchmarked against the operational needs and technological advancements of naval fleets.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract value is substantial, requiring close monitoring.
- Potential for scope creep if not managed tightly.
- Dependence on a single contractor for critical maintenance.
- Long contract duration may introduce unforeseen risks.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS STETHEM EDSRA
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO 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 $91.6 million.
What is the period of performance?
Start: 2019-09-07. End: 2021-03-19.
What specific maintenance and repair tasks are included in this $91.6 million contract to ensure value for money?
The provided data does not detail the specific tasks. A comprehensive review of the contract's statement of work (SOW) would be necessary to understand the scope, including hull maintenance, system upgrades, and equipment overhauls. This would allow for a better assessment of whether the $91.6 million represents good value for the services rendered.
What were the key factors that led to BAE Systems being selected over other bidders in this full and open competition?
While the data confirms full and open competition, it doesn't specify the evaluation criteria. Typically, selection is based on a combination of technical capability, past performance, schedule adherence, and price. BAE Systems likely demonstrated superior performance in these areas or offered the most advantageous price-technical trade-off to win the contract.
How does the duration and value of this contract compare to similar maintenance contracts for naval vessels of comparable size and age?
The contract duration of 559 days and value of $91.6 million are significant. A comparative analysis with similar contracts for destroyers or other vessels of the USS STETHEM's class would be needed. Factors like the vessel's age, operational tempo, and specific repair requirements influence these benchmarks.
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: N0002419R4455
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 2205 E BELT ST, SAN DIEGO, CA, 92113
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: $95,067,572
Exercised Options: $91,559,506
Current Obligation: $91,559,506
Actual Outlays: $9,253,984
Subaward Activity
Number of Subawards: 140
Total Subaward Amount: $30,053,014
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2019-09-07
Current End Date: 2021-03-19
Potential End Date: 2021-03-19 00:00:00
Last Modified: 2022-04-02
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