DoD Awards $124.6M Contract for LPD 17 Class Engineering Services to Huntington Ingalls
Contract Overview
Contract Amount: $124,649,128 ($124.6M)
Contractor: Huntington Ingalls Incorporated
Awarding Agency: Department of Defense
Start Date: 2021-02-26
End Date: 2027-02-01
Contract Duration: 2,166 days
Daily Burn Rate: $57.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LPD 17 CLASS ENGINEERING SERVICES
Place of Performance
Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567
Plain-Language Summary
Department of Defense obligated $124.6 million to HUNTINGTON INGALLS INCORPORATED for work described as: LPD 17 CLASS ENGINEERING SERVICES Key points: 1. Significant contract value for specialized naval engineering services. 2. Sole-source award to Huntington Ingalls Inc. raises questions about competition. 3. Long-term contract duration (2027) suggests ongoing program needs. 4. Focus on shipbuilding and repair sector, critical for national defense.
Value Assessment
Rating: questionable
The contract value of $124.6M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized naval engineering contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Huntington Ingalls Incorporated. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this large contract may result in taxpayers paying a premium for these essential engineering services.
Public Impact
Impacts naval shipbuilding capabilities and readiness. Ensures continued support for the LPD 17 class of ships. Potential for cost overruns due to lack of competitive pressure. Highlights reliance on a single contractor for critical defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential services for naval fleet
- Experienced contractor
Sector Analysis
This contract falls within the shipbuilding and repair sector, a critical component of the defense industry. Spending benchmarks in this area are highly specialized and often driven by unique military requirements and limited contractor pools.
Small Business Impact
The contract was awarded to Huntington Ingalls Incorporated, a large prime contractor. There is no indication of small business participation in this specific award, suggesting potential missed opportunities for small businesses in the supply chain.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure cost-effectiveness and performance. Accountability will be key in managing this long-term agreement and verifying that taxpayer funds are used efficiently.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Long-term duration may not reflect current market conditions.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in price negotiation.
- Reliance on a single entity for critical services.
Tags
ship-building-and-repairing, department-of-defense, ms, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.6 million to HUNTINGTON INGALLS INCORPORATED. LPD 17 CLASS ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is HUNTINGTON INGALLS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $124.6 million.
What is the period of performance?
Start: 2021-02-26. End: 2027-02-01.
What is the justification for awarding this significant contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. For naval shipbuilding, this might relate to specific platform expertise or ongoing sustainment requirements tied to the original builder.
What are the potential risks associated with a sole-source contract of this magnitude and duration?
The primary risks include inflated costs due to lack of competition, potential for complacency from the contractor regarding innovation and efficiency, and a reduced ability to adapt to changing requirements if the contractor is unwilling or unable to do so without significant renegotiation.
How will the effectiveness of these engineering services be measured and ensured?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as adherence to schedules, quality of deliverables, and achievement of technical objectives. Regular reviews and milestone assessments by the Department of the Navy will be crucial for ensuring accountability and successful execution.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002420R2443
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc
Address: 1000 ACCESS RD, PASCAGOULA, MS, 39567
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $231,439,509
Exercised Options: $217,401,140
Current Obligation: $124,649,128
Actual Outlays: $9,215
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $5,426,798
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-02-26
Current End Date: 2027-02-01
Potential End Date: 2027-02-01 00:00:00
Last Modified: 2025-12-19
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