Navy's USS Vicksburg Modernization Contract Reaches $230M with BAE Systems

Contract Overview

Contract Amount: $230,292,924 ($230.3M)

Contractor: BAE Systems Maritime Solutions Norfolk Inc.

Awarding Agency: Department of Defense

Start Date: 2019-12-17

End Date: 2024-02-23

Contract Duration: 1,529 days

Daily Burn Rate: $150.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS VICKSBURG (CG 69) MODERNIZATION PERIOD (MODPRD) AVAILABILITY

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $230.3 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS VICKSBURG (CG 69) MODERNIZATION PERIOD (MODPRD) AVAILABILITY Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship modernization. 2. Significant investment in naval asset readiness and capability. 3. Potential for cost overruns or schedule delays in complex modernization projects. 4. Spending concentrated in the Ship Building and Repairing sector.

Value Assessment

Rating: good

The contract value of $230.3M for the USS Vicksburg modernization appears reasonable given the scope of ship repair and modernization. Benchmarking against similar naval vessel modernization contracts would provide a more precise assessment.

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 that should drive price discovery. The use of a definitive contract indicates a clear scope of work.

Taxpayer Impact: Taxpayer funds are being utilized for critical defense asset maintenance and upgrades, ensuring naval readiness.

Public Impact

Ensures the operational readiness of a key naval asset. Supports jobs in the maritime defense industry. Contributes to national security through fleet modernization.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract type
Focus on critical naval asset modernization

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a critical component of the defense industrial base. Spending in this area is essential for maintaining a modern and capable fleet.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The award of a definitive contract under full and open competition suggests a structured procurement process. Ongoing oversight will be crucial to manage performance and costs throughout the modernization period.

Related Government Programs

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

Risk Flags

Potential for schedule slippage
Risk of cost growth
Integration challenges with new systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $230.3 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS VICKSBURG (CG 69) MODERNIZATION PERIOD (MODPRD) AVAILABILITY

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 $230.3 million.

What is the period of performance?

Start: 2019-12-17. End: 2024-02-23.

What is the expected impact of this modernization on the USS Vicksburg's operational capabilities and lifespan?

This modernization period is expected to significantly enhance the USS Vicksburg's combat systems, sensors, and overall platform reliability. The upgrades aim to extend its service life by several years, ensuring it remains a capable asset in the fleet and can effectively execute its assigned missions in a modern threat environment.

What are the primary risks associated with the BAE Systems contract for the USS Vicksburg modernization?

Key risks include potential schedule delays due to unforeseen technical challenges during modernization, cost overruns if the scope expands beyond the initial estimates, and ensuring the integration of new systems is seamless. Performance by BAE Systems and effective government oversight are critical to mitigating these risks.

How does this $230M investment align with the Navy's broader shipbuilding and modernization strategy?

This investment aligns with the Navy's strategy to maintain a technologically advanced and ready fleet. Modernizing existing platforms like the USS Vicksburg is a cost-effective approach to extending capability compared to building entirely new vessels, ensuring readiness while managing shipbuilding budgets.

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: N0002419R4446

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523

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: $230,292,924

Exercised Options: $230,292,924

Current Obligation: $230,292,924

Actual Outlays: $49,624,297

Subaward Activity

Number of Subawards: 391

Total Subaward Amount: $260,181,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline