DoD's $231M USS BOXER DSRA Contract Awarded to BAE Systems Under Full and Open Competition

Contract Overview

Contract Amount: $231,244,669 ($231.2M)

Contractor: BAE Systems Maritime Solutions SAN Diego Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-27

End Date: 2021-12-08

Contract Duration: 621 days

Daily Burn Rate: $372.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS BOXER DSRA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $231.2 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS BOXER DSRA Key points: 1. The Department of the Navy awarded a $231.2 million contract for the USS BOXER DSRA to BAE Systems Maritime Solutions. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The award value is substantial, indicating a significant investment in ship maintenance and repair. 4. The contract duration was 621 days, covering a significant period for the vessel's upkeep.

Value Assessment

Rating: good

The contract value of $231.2 million for ship repair and maintenance appears reasonable given the scope and duration. Benchmarking against similar large-scale naval vessel repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders. This method is expected to yield fair market prices.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers are likely receiving a fair price for the services rendered, maximizing value for the allocated funds.

Public Impact

Ensures the operational readiness of a key naval asset, the USS BOXER. Supports jobs and economic activity within the shipbuilding and repair sector, particularly in California. Demonstrates the Navy's commitment to maintaining its fleet through competitive contracting processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in complex ship repair projects.
  • Dependence on a single contractor for a critical asset's maintenance.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type can limit cost uncertainty.
  • Contract supports a significant naval vessel.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense, involving complex engineering and specialized labor. Spending in this area is often substantial and subject to rigorous oversight due to its strategic importance and cost.

Small Business Impact

While this contract was awarded to a large prime contractor (BAE Systems), the execution of such a large project likely involves subcontracting opportunities for smaller businesses in the supply chain and specialized repair services.

Oversight & Accountability

The Department of the Navy's contracting process, including the use of full and open competition and a firm fixed price contract, suggests established oversight mechanisms. However, ongoing monitoring of performance and costs is crucial.

Related Government Programs

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

Risk Flags

  • Contract awarded to a single large entity.
  • Potential for scope creep in complex repair projects.
  • Long duration of the contract.
  • Dependence on specific technical expertise.

Tags

ship-building-and-repairing, department-of-defense, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $231.2 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS BOXER DSRA

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 $231.2 million.

What is the period of performance?

Start: 2020-03-27. End: 2021-12-08.

What specific maintenance and repair tasks were included in the DSRA for the USS BOXER, and how do they align with the vessel's lifecycle needs?

The specific tasks within the DSRA (Docking and Selective Repair Availability) for the USS BOXER would typically encompass a range of planned maintenance, inspections, and necessary repairs to ensure the ship's combat readiness and operational effectiveness. This often includes hull work, propulsion system servicing, habitability upgrades, and modernization of electronic systems, all aligned with the vessel's scheduled maintenance cycle and long-term operational requirements.

How does the awarded price of $231.2 million compare to historical DSRA costs for similar naval vessels of the USS BOXER's class?

A comprehensive comparison would require access to historical cost data for similar vessels. However, given the complexity of modern naval ship maintenance and potential inflation, this figure appears within a plausible range for a major availability. Further analysis of specific repair scopes and market rates would be needed for a definitive benchmark assessment.

What mechanisms are in place to ensure the quality of work and prevent cost overruns during the execution of this firm fixed-price contract?

For a firm fixed-price contract, the primary mechanism is the contractor's incentive to complete the work within the agreed budget. Oversight by the Navy's contracting officers and technical representatives is crucial to monitor progress, ensure adherence to specifications, and manage any unforeseen issues. Change orders, if necessary, would be strictly managed to control scope creep and associated costs.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTNON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002419R4416

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 2205 E BELT ST, SAN DIEGO, CA, 92113

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

Financial Breakdown

Contract Ceiling: $232,540,756

Exercised Options: $231,249,669

Current Obligation: $231,244,669

Actual Outlays: $61,642,719

Subaward Activity

Number of Subawards: 405

Total Subaward Amount: $102,203,315

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-03-27

Current End Date: 2021-12-08

Potential End Date: 2021-12-08 00:00:00

Last Modified: 2024-01-09

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