Navy Awards $101M Ship Repair Contract to National Steel and Shipbuilding for USS Makin Island
Contract Overview
Contract Amount: $101,248,320 ($101.2M)
Contractor: National Steel and Shipbuilding Company
Awarding Agency: Department of Defense
Start Date: 2023-05-11
End Date: 2025-05-02
Contract Duration: 722 days
Daily Burn Rate: $140.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CNO AVAILABILITY USS MAKIN ISLAND (LHD 8) FY23 SRA.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $101.2 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: CNO AVAILABILITY USS MAKIN ISLAND (LHD 8) FY23 SRA. Key points: 1. Significant contract value of $101.2 million for ship repair services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the fixed-price contract type and established contractor. 4. Spending falls within the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract value of $101.2 million for a 722-day duration appears reasonable for a complex ship repair project. Benchmarking against similar LHD class repairs would provide further context, but the firm fixed-price structure offers cost certainty.
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 competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary ship maintenance and readiness.
Public Impact
Ensures operational readiness of a key naval asset, the USS Makin Island. Supports jobs and economic activity within the shipbuilding and repair industry. Demonstrates the Navy's commitment to maintaining its fleet through competitive contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise beyond the scope of the fixed-price contract.
- Dependence on a single contractor for a critical repair project.
- Schedule delays could impact operational availability of the USS Makin Island.
Positive Signals
- Full and open competition likely secured a competitive price.
- Firm fixed-price contract provides cost predictability.
- Contract awarded to an established ship repair company with relevant experience.
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is crucial for maintaining naval fleet readiness. Spending in this sector can fluctuate based on fleet modernization needs and maintenance cycles.
Small Business Impact
The data indicates the primary awardee is National Steel and Shipbuilding Company. There is no explicit mention of small business participation in this specific award, suggesting potential for subcontracting opportunities.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. The firm fixed-price nature and defined period of performance provide clear accountability metrics.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for unforeseen repair requirements leading to cost increases.
- Dependence on a single contractor for a critical asset.
- Schedule slippage impacting ship availability.
- Quality of repair work not meeting standards.
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 $101.2 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. CNO AVAILABILITY USS MAKIN ISLAND (LHD 8) FY23 SRA.
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 $101.2 million.
What is the period of performance?
Start: 2023-05-11. End: 2025-05-02.
What is the historical performance of National Steel and Shipbuilding Company on similar naval repair contracts?
Assessing the contractor's past performance is crucial. Reviewing previous contracts of similar scope and complexity, including any issues encountered and their resolution, would provide insight into their reliability and capability. This helps mitigate risks associated with schedule adherence and quality of work.
How does the awarded price compare to independent cost estimates for this type of repair?
Comparing the $101.2 million award to independent government cost estimates or industry benchmarks for similar LHD-class repairs is essential for validating value. A significant deviation could indicate either an exceptionally good deal or potential underpricing, which might lead to future change orders or quality compromises.
What are the specific repair tasks included in the SRA, and are there any potential for scope creep?
Understanding the detailed scope of the Ship Repair Availability (SRA) is vital. Identifying all included tasks and assessing the likelihood of unforeseen issues requiring additional work (scope creep) helps evaluate the true cost and potential risks. Clear contract language and robust oversight are key to managing this.
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: N0002423R4404
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: $105,567,579
Exercised Options: $101,248,320
Current Obligation: $101,248,320
Actual Outlays: $21,288,034
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-05-11
Current End Date: 2025-05-02
Potential End Date: 2025-05-02 00:00:00
Last Modified: 2025-07-16
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