Navy awards $127M contract for USS Comstock docking to National Steel and Shipbuilding, utilizing full and open competition

Contract Overview

Contract Amount: $127,064,960 ($127.1M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2022-11-17

End Date: 2023-06-16

Contract Duration: 211 days

Daily Burn Rate: $602.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS COMSTOCK (LSD 45)DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA).

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $127.1 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: USS COMSTOCK (LSD 45)DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA). Key points: 1. Contract awarded to National Steel and Shipbuilding Company for $127M. 2. The contract is for a Docking Selected Restricted Availability (DSRA) for the USS Comstock (LSD 45). 3. Competition method was 'FULL AND OPEN COMPETITION'. 4. The contract type is 'FIRM FIXED PRICE'. 5. The period of performance is from November 17, 2022, to June 16, 2023.

Value Assessment

Rating: good

The contract value of $127M for a major ship availability appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar DSRA contracts for amphibious assault ships 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 is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, fostering a competitive environment that should drive down costs.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available.

Public Impact

Ensures readiness of a key naval asset, the USS Comstock. Supports jobs in the shipbuilding and repair sector. The firm-fixed-price contract structure shifts cost risk to the contractor. The availability period is clearly defined, aiding in fleet operational planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the restricted availability.
Dependence on a single contractor for a critical repair window.

Positive Signals

Clear contract type (FFP) and defined scope.
Competitive bidding process utilized.
Specific vessel and availability type are well-defined.

Sector Analysis

Naval ship repair and maintenance fall under the broader Defense industrial sector. Spending in this area is critical for maintaining fleet readiness and national security. Benchmarks for similar availabilities vary significantly based on ship class and scope of work.

Small Business Impact

While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities within the shipbuilding and repair supply chain. Further analysis would be needed to confirm direct small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for major procurements. The firm-fixed-price nature of the contract provides a degree of cost control.

Related Government Programs

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

Risk Flags

Potential for scope creep leading to cost increases.
Reliance on a single contractor for critical repairs.
Complexity of naval vessel maintenance can lead to unforeseen issues.
Schedule slippage impacting fleet readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $127.1 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. USS COMSTOCK (LSD 45)DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA).

Who is the contractor on this award?

The obligated recipient is NATIONAL STEEL AND SHIPBUILDING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $127.1 million.

What is the period of performance?

Start: 2022-11-17. End: 2023-06-16.

What is the historical cost performance of National Steel and Shipbuilding Company on similar naval repair contracts?

Historical performance data for National Steel and Shipbuilding Company on similar contracts is crucial for assessing future cost predictability. Reviewing past projects for cost overruns, schedule adherence, and quality of work would provide valuable insights into their capabilities and reliability. This information helps determine if their pricing is competitive and if they are a low-risk awardee for complex availabilities.

How does the scope of work for this DSRA compare to typical availabilities for LSD-class ships?

Comparing the scope of work for this specific Docking Selected Restricted Availability (DSRA) against historical data for similar LSD-class ships is essential for validating the $127M price tag. A detailed breakdown of planned repairs, upgrades, and maintenance tasks against industry standards and previous availabilities will reveal if the contract scope is comprehensive or potentially contains elements that could lead to future change orders and cost increases.

What are the key performance indicators (KPIs) used to measure the success of this contract and the readiness of the USS Comstock post-availability?

Key Performance Indicators (KPIs) for this contract would likely include adherence to the schedule (delivery by June 16, 2023), meeting all technical specifications for the repairs and upgrades, and ensuring the USS Comstock is returned to operational readiness. Success would be measured by the absence of major defects post-availability and the ship's ability to perform its intended missions without further immediate maintenance needs.

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: N0002420R4405

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2798 E HARBOR DR, SAN DIEGO, CA, 92113

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

Financial Breakdown

Contract Ceiling: $127,896,087

Exercised Options: $127,064,960

Current Obligation: $127,064,960

Actual Outlays: $91,942,983

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $3,828,586

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline