Navy Awards $118.7M for USS Pinckney Modernization to National Steel and Shipbuilding
Contract Overview
Contract Amount: $118,674,777 ($118.7M)
Contractor: National Steel and Shipbuilding Company
Awarding Agency: Department of Defense
Start Date: 2021-06-11
End Date: 2023-11-09
Contract Duration: 881 days
Daily Burn Rate: $134.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS PINCKNEY (DDG 91) FY22 DEPOT MODERNIZATION PERIOD AVAILABILITY TYCOM BASE WORK ITEMS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $118.7 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: USS PINCKNEY (DDG 91) FY22 DEPOT MODERNIZATION PERIOD AVAILABILITY TYCOM BASE WORK ITEMS Key points: 1. Significant contract value for a major fleet modernization. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, typical for complex depot availabilities. 4. Spending falls within the Ship Building and Repairing sector.
Value Assessment
Rating: good
The $118.7 million award for the USS Pinckney's depot modernization appears reasonable given the scope of work, which includes extensive maintenance and upgrades. Benchmarking against similar destroyer availabilities 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, indicating multiple bidders likely participated. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by leveraging market forces to drive down costs.
Public Impact
Ensures the operational readiness of a key Arleigh Burke-class destroyer. Supports critical naval infrastructure and shipbuilding capabilities. Modernization likely enhances the ship's combat systems and lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Firm-fixed-price contract type.
- Significant investment in fleet readiness.
Sector Analysis
This contract falls under the Ship Building and Repairing sector, a critical area for national defense. Spending benchmarks for similar depot availabilities on destroyers are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While the prime contractor is a large entity, the contract may offer subcontracting opportunities for small businesses in specialized repair, maintenance, or supply chain roles within the shipbuilding and repair industry.
Oversight & Accountability
The Department of the Navy's oversight is crucial for ensuring the timely and cost-effective completion of this complex modernization. Performance metrics and regular progress reviews are standard oversight mechanisms.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule delays common in complex ship availabilities.
- Risk of cost overruns if unforeseen technical issues arise.
- Dependence on a single prime contractor for execution.
- Ensuring long-term sustainment and maintenance post-modernization.
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 $118.7 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. USS PINCKNEY (DDG 91) FY22 DEPOT MODERNIZATION PERIOD AVAILABILITY TYCOM BASE WORK ITEMS
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 $118.7 million.
What is the period of performance?
Start: 2021-06-11. End: 2023-11-09.
What is the projected impact of this modernization on the USS Pinckney's operational lifespan and combat capabilities?
This depot modernization is expected to significantly extend the USS Pinckney's service life by addressing wear and tear, and incorporating necessary upgrades to its combat systems, sensors, and propulsion. The goal is to ensure the vessel remains a capable asset in the fleet for years to come, potentially enhancing its effectiveness against modern threats.
How does the final cost compare to initial estimates, and what factors contributed to any variances?
A detailed comparison of the final $118.7 million award against initial cost estimates would reveal the efficiency of the bidding process and any unforeseen challenges encountered. Variances could stem from scope adjustments, material cost fluctuations, or unexpected technical complexities discovered during the availability planning phase.
What are the key performance indicators (KPIs) used to measure the success of this depot availability?
Key performance indicators likely include adherence to schedule, cost control within the firm-fixed-price structure, quality of workmanship, and successful testing of all modernized systems. Meeting or exceeding these KPIs ensures the vessel is returned to the fleet ready for its operational missions and that taxpayer funds were used effectively.
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: N0002421R4478
Offers Received: 3
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: $121,597,889
Exercised Options: $118,674,777
Current Obligation: $118,674,777
Actual Outlays: $60,980,166
Subaward Activity
Number of Subawards: 224
Total Subaward Amount: $31,277,699
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-06-11
Current End Date: 2023-11-09
Potential End Date: 2023-11-09 00:00:00
Last Modified: 2025-06-17
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