DoD's $114.7M USS MUSTIN modernization contract awarded to BAE Systems via full and open competition
Contract Overview
Contract Amount: $114,651,057 ($114.7M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2022-05-16
End Date: 2023-12-15
Contract Duration: 578 days
Daily Burn Rate: $198.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS MUSTIN (DDG 89) FY22 DEPOT MODERNIZATION PERIOD (DMP)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $114.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS MUSTIN (DDG 89) FY22 DEPOT MODERNIZATION PERIOD (DMP) Key points: 1. The contract value of $114.7M for depot modernization is significant for ship repair. 2. BAE Systems Maritime Solutions is the sole awardee, indicating strong capabilities in this specialized area. 3. The firm-fixed-price contract type aims to control costs for this extensive modernization. 4. This expenditure falls within the broader shipbuilding and repairing sector, crucial for naval readiness.
Value Assessment
Rating: good
The $114.7M contract value for a major ship modernization appears reasonable given the scope and complexity of depot maintenance for a guided-missile destroyer. Benchmarking against similar large-scale naval vessel overhauls 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 robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple qualified contractors vie for the work.
Taxpayer Impact: Taxpayer funds are being used for essential naval asset maintenance, ensuring the operational readiness of the fleet. The competitive award process aims to maximize value for the investment.
Public Impact
Ensures the continued operational readiness of a key naval asset, the USS MUSTIN. Supports specialized maritime repair jobs and the associated supply chain. Demonstrates the government's commitment to maintaining its fleet through complex modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 578 days is substantial, requiring close monitoring.
- Potential for cost overruns in complex depot modernization projects.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type helps manage cost certainty.
- Modernization ensures long-term asset viability.
Sector Analysis
This contract falls under the Ship Building and Repairing sector, a critical component of the defense industrial base. Spending in this area is directly tied to maintaining naval fleet readiness and technological superiority, with significant investments typically required for major overhauls.
Small Business Impact
While the prime contractor is BAE Systems, a large entity, the execution of such a large depot modernization likely involves numerous subcontractors. Opportunities for small businesses may exist within the supply chain for specialized parts, services, or labor.
Oversight & Accountability
The Department of the Navy's oversight is critical for managing the scope, schedule, and budget of this extensive modernization. Regular progress reviews and performance metrics will be essential to ensure accountability and successful project completion.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy.
- Complexity of depot modernization projects.
- Potential for scope creep.
- Reliance on a single prime contractor for a large scope.
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 $114.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS MUSTIN (DDG 89) FY22 DEPOT MODERNIZATION PERIOD (DMP)
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 $114.7 million.
What is the period of performance?
Start: 2022-05-16. End: 2023-12-15.
What specific modernization upgrades are included in this contract, and how do they enhance the USS MUSTIN's capabilities?
The contract details the 'Depot Modernization Period (DMP)' for the USS MUSTIN (DDG 89). While specific upgrade lists are often proprietary, DMPs typically encompass hull maintenance, propulsion system overhauls, combat system upgrades, habitability improvements, and integration of new technologies to extend the ship's service life and enhance its operational effectiveness against evolving threats.
What are the primary risks associated with a contract of this magnitude and duration for ship modernization?
Key risks include potential schedule delays due to unforeseen technical challenges or supply chain disruptions, cost overruns if the firm-fixed-price contract doesn't adequately account for all variables, and performance risks related to the quality of the modernization work. Ensuring robust government oversight and clear communication with the contractor are vital to mitigate these risks.
How does this investment contribute to the overall effectiveness and readiness of the U.S. Navy's fleet?
Modernizing vessels like the USS MUSTIN is crucial for maintaining the U.S. Navy's global presence and operational readiness. It ensures that aging platforms are updated with current technology, extending their service life and allowing them to effectively counter modern threats. This investment directly supports the Navy's mission capabilities and strategic objectives.
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: N0002421R4485
Offers Received: 3
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, SAN DIEGO, CA, 92113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,527,191
Exercised Options: $114,651,057
Current Obligation: $114,651,057
Actual Outlays: $72,967,733
Subaward Activity
Number of Subawards: 265
Total Subaward Amount: $8,476,990
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-16
Current End Date: 2023-12-15
Potential End Date: 2023-12-15 00:00:00
Last Modified: 2024-03-19
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