Navy Awards $88.6M Contract for USS Anchorage Docking Availability to National Steel and Shipbuilding

Contract Overview

Contract Amount: $88,611,653 ($88.6M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2023-03-09

End Date: 2025-06-09

Contract Duration: 823 days

Daily Burn Rate: $107.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CHIEF OF NAVAL OPERATIONS USS ANCHORAGE (LPD 23) FY23 DOCKING SELECTED RESTRICTED AVAILABILITY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $88.6 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: CHIEF OF NAVAL OPERATIONS USS ANCHORAGE (LPD 23) FY23 DOCKING SELECTED RESTRICTED AVAILABILITY Key points: 1. The contract value of $88.6 million is significant for ship repair services. 2. National Steel and Shipbuilding Company is the sole awardee, raising questions about competition. 3. The firm-fixed-price contract type aims to control costs, but the long duration presents potential risks. 4. This spending falls within the broader Defense sector, specifically ship maintenance and repair.

Value Assessment

Rating: fair

The $88.6 million contract value for a docking availability is substantial. Benchmarking against similar complex ship repair contracts is difficult without more specific scope details, but the price appears within a reasonable range for extensive work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bids were solicited. However, only one awardee was listed, which warrants further investigation into the bidding process and the number of actual proposals received to ensure robust price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential naval vessel maintenance. The competitive process, if effective, should ensure a fair price for the services rendered, minimizing waste.

Public Impact

Ensures the operational readiness of a key naval asset, the USS Anchorage. Supports jobs within the shipbuilding and repair industry, particularly in California. Contributes to the overall defense capabilities of the U.S. Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to long contract duration (823 days).
Limited visibility into the number of actual competitors despite 'full and open' designation.
Dependence on a single contractor for critical repair work.

Positive Signals

Contract awarded under full and open competition.
Firm-fixed-price contract type helps manage cost certainty.
Essential maintenance for a naval vessel ensures readiness.

Sector Analysis

This contract falls under the Ship Building and Repairing sector, a critical component of national defense infrastructure. Spending in this area is often substantial due to the complexity and specialized nature of naval vessels.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Large shipbuilding and repair contracts often involve prime contractors who may then subcontract portions of the work, potentially creating opportunities for small businesses.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Standard oversight mechanisms for large defense contracts, including performance monitoring and financial audits, should be in place to ensure accountability.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to long duration.
Limited competition despite 'full and open' designation.
Dependence on a single contractor for critical repairs.
Lack of detailed scope of work for precise cost analysis.
Potential for schedule delays impacting naval readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.6 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. CHIEF OF NAVAL OPERATIONS USS ANCHORAGE (LPD 23) FY23 DOCKING SELECTED RESTRICTED AVAILABILITY

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 $88.6 million.

What is the period of performance?

Start: 2023-03-09. End: 2025-06-09.

What was the total number of bids received during the full and open competition, and why was only one award made?

Investigating the number of bids received is crucial to understanding the effectiveness of the 'full and open' competition. If only one bid was submitted or deemed viable, it could indicate market limitations, overly restrictive requirements, or potential issues with the solicitation process. This information is key to assessing whether the government truly received the best possible value and price.

What specific maintenance and repair tasks are included in this availability, and how do they compare to the benchmark cost of $107,669 per day?

Understanding the scope of work is essential for evaluating the daily cost benchmark of approximately $107,669. Complex repairs, upgrades, or extensive overhauls would justify a higher daily rate than routine maintenance. A detailed breakdown of tasks allows for a more accurate assessment of whether the pricing is competitive and reflects the actual effort required.

What are the contingency plans if National Steel and Shipbuilding Company encounters significant delays or performance issues during the 823-day availability period?

The extended duration of the contract (823 days) necessitates robust contingency planning. The Navy needs clear contractual clauses addressing remedies for delays, performance failures, or contractor default. This includes potential penalties, termination clauses, and mechanisms for bringing in alternative contractors if necessary to minimize disruption to the USS Anchorage's operational schedule.

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: N0002423R4407

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: $99,530,005

Exercised Options: $88,611,653

Current Obligation: $88,611,653

Actual Outlays: $12,490,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline