DoD Awards $53.5M Contract to BAE Systems for USS John P. Murtha Ship Repair
Contract Overview
Contract Amount: $53,522,920 ($53.5M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-24
End Date: 2025-03-25
Contract Duration: 610 days
Daily Burn Rate: $87.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CNO AVAILABILITY USS JOHN P MURTHA (LPD 26) FY 23 SRA.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $53.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: CNO AVAILABILITY USS JOHN P MURTHA (LPD 26) FY 23 SRA. Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship availability services. 2. Significant value of $53.5 million for a single contract. 3. No competition was identified for this procurement. 4. The sector is Ship Building and Repairing, a critical defense area.
Value Assessment
Rating: fair
The contract value of $53.5M for ship repair services needs comparison against similar naval vessel maintenance contracts. Without benchmark data, assessing if this price is competitive is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This may have impacted price discovery, potentially leading to a higher cost than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for this significant ship repair contract. The lack of competition raises concerns about the optimal use of these funds.
Public Impact
Ensures operational readiness of a key naval asset, the USS John P. Murtha. Supports critical defense infrastructure and national security capabilities. Impacts the shipbuilding and repair sector, potentially supporting jobs at BAE Systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns without competitive pressure
Positive Signals
- Ensures availability of a critical naval asset
- Supports a major defense contractor
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is vital for maintaining naval fleet readiness. Spending in this sector is often characterized by high costs due to specialized labor and materials.
Small Business Impact
The contract was awarded to BAE Systems Maritime Solutions, a large defense contractor. There is no indication that small businesses were involved as subcontractors in this specific award.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight would typically involve contract management to ensure timely delivery and adherence to specifications, with potential for audits.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Potential for cost inefficiency
- Lack of transparency in procurement method
- High contract value
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. CNO AVAILABILITY USS JOHN P MURTHA (LPD 26) FY 23 SRA.
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 $53.5 million.
What is the period of performance?
Start: 2023-07-24. End: 2025-03-25.
What is the justification for awarding this contract on a limited competition basis?
The justification for limited competition needs to be clearly documented by the Department of the Navy. Reasons could include urgent need, unique capabilities of the sole provider, or specific technical requirements that only BAE Systems could meet. Without this justification, it's difficult to assess if limited competition was truly necessary or if it was a missed opportunity for broader engagement.
How does the $53.5M cost compare to similar ship repair contracts for LPD-class vessels?
Benchmarking this $53.5 million contract against similar repair contracts for LPD-class vessels is crucial for assessing value. If comparable repairs typically cost less, it suggests potential overpricing or scope creep. Conversely, if it aligns with or is below market rates for similar complex maintenance, it might represent a fair price despite the lack of competition.
What are the performance metrics and penalties associated with this contract to ensure effectiveness?
The effectiveness of this contract hinges on clearly defined performance metrics and potential penalties for non-compliance. These should cover aspects like repair quality, timeliness, and adherence to budget. The Department of the Navy must have robust oversight mechanisms in place to track progress and ensure BAE Systems meets its contractual obligations, safeguarding taxpayer 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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002423R4419
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, 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: $53,695,105
Exercised Options: $53,522,920
Current Obligation: $53,522,920
Actual Outlays: $5,674,214
Subaward Activity
Number of Subawards: 290
Total Subaward Amount: $21,685,021
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-07-24
Current End Date: 2025-03-25
Potential End Date: 2025-03-25 00:00:00
Last Modified: 2025-07-29
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