DoD's $109.7M USS San Diego DSRA Contract Awarded to BAE Systems Amidst Full and Open Competition
Contract Overview
Contract Amount: $109,707,428 ($109.7M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-13
End Date: 2023-05-15
Contract Duration: 609 days
Daily Burn Rate: $180.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS SAN DIEGO (LPD 22) FY21 DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $109.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS SAN DIEGO (LPD 22) FY21 DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA) Key points: 1. The contract value of $109.7 million for the USS San Diego's docking availability represents a significant investment in naval readiness. 2. BAE Systems Maritime Solutions, the sole awardee, faced competition under a full and open process, suggesting a competitive bidding environment. 3. The primary risk lies in potential cost overruns or schedule delays inherent in complex ship repair and maintenance projects. 4. This contract falls within the Ship Building and Repairing sector, crucial for maintaining the operational capabilities of the U.S. Navy fleet.
Value Assessment
Rating: fair
The contract's firm fixed price structure aims to control costs. However, the duration of 609 days for a docking availability suggests complexity, which can sometimes lead to unforeseen issues impacting the final price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for the contract.
Public Impact
Ensures the operational readiness of a key naval asset, the USS San Diego (LPD 22). Supports critical infrastructure and skilled labor within the maritime repair industry. Demonstrates the Department of the Navy's commitment to maintaining its fleet through complex maintenance availabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays due to complexity of ship repair.
- Risk of unforeseen technical issues requiring scope changes.
- Dependence on a single contractor for a critical availability.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Awarded under full and open competition.
- Contract duration aligns with typical complex availabilities.
Sector Analysis
This contract is within the Ship Building and Repairing sector, which is vital for national defense. Spending in this area is benchmarked against the operational needs and maintenance cycles of naval vessels.
Small Business Impact
While the awardee is BAE Systems Maritime Solutions, a large corporation, the nature of ship repair often involves a complex supply chain that can include numerous small businesses for specialized services and parts.
Oversight & Accountability
The contract's firm fixed price and full and open competition structure provide a degree of oversight. Further accountability would be managed through contract administration and performance monitoring by the Department of the Navy.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage.
- Risk of unforeseen technical issues.
- Complexity of major ship repair.
- Dependence on a single contractor for critical maintenance.
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 $109.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS SAN DIEGO (LPD 22) FY21 DOCKING SELECTED RESTRICTED AVAILABILITY (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 $109.7 million.
What is the period of performance?
Start: 2021-09-13. End: 2023-05-15.
What is the benchmark for a 609-day docking availability for an LPD-class ship, and how does this contract's value compare?
Benchmarking a 609-day docking availability for an LPD-class ship is complex due to variations in scope, age, and specific maintenance needs. However, contracts of this duration and value are typical for major overhauls and modernization efforts. The $109.7 million awarded to BAE Systems appears within the expected range for such extensive work, reflecting the significant labor, materials, and specialized services required.
What specific risks are associated with BAE Systems Maritime Solutions performing this DSRA, given their role as the sole awardee?
As the sole awardee, BAE Systems faces the risk of potential cost overruns if unforeseen technical challenges arise during the extensive 609-day availability. The government's risk is mitigated by the firm fixed price contract, but delays or significant scope changes could still impact readiness. Oversight will be crucial to ensure performance standards are met and taxpayer funds are managed effectively.
How does the firm fixed price contract structure impact the government's ability to ensure value for money in this complex ship repair?
The firm fixed price (FFP) structure is designed to provide the government with cost certainty, making the contractor fully responsible for all costs exceeding the agreed-upon price. This incentivizes efficiency and cost control by BAE Systems. While it limits the government's exposure to cost overruns, effective oversight is still necessary to ensure the quality of work meets specifications and the overall value delivered aligns with the investment.
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: N0002421R4442
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: 2205 E BELT ST, FOOT OF SAMPSON ST, 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: $112,233,562
Exercised Options: $109,707,428
Current Obligation: $109,707,428
Actual Outlays: $81,964,758
Subaward Activity
Number of Subawards: 166
Total Subaward Amount: $31,003,586
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-13
Current End Date: 2023-05-15
Potential End Date: 2023-05-15 00:00:00
Last Modified: 2023-11-16
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