DoD's $156.6M Contract for USS Arlington DSRA: Metro Machine Corp. Awarded Firm Fixed Price Deal

Contract Overview

Contract Amount: $156,636,940 ($156.6M)

Contractor: Metro Machine Corp.

Awarding Agency: Department of Defense

Start Date: 2023-01-17

End Date: 2025-02-21

Contract Duration: 766 days

Daily Burn Rate: $204.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CNO AVAILABILITY FOR USS ARLINGTON FY23 DSRA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $156.6 million to METRO MACHINE CORP. for work described as: CNO AVAILABILITY FOR USS ARLINGTON FY23 DSRA Key points: 1. The contract value of $156.6 million for CNO Availability for USS Arlington (FY23 DSRA) is significant. 2. Metro Machine Corp. secured this award under full and open competition. 3. The firm fixed price contract type aims to control costs, but potential risks exist in scope changes. 4. The sector is Ship Building and Repairing, a critical component of national defense infrastructure.

Value Assessment

Rating: good

The $156.6 million contract price appears reasonable given the scope of a Dry Docking and Special Refueling Availability (DSRA) for a naval vessel. Benchmarking against similar complex ship repair contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified contractors can bid.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for this critical naval maintenance.

Public Impact

Ensures the operational readiness of the USS Arlington, a key asset for national security. Supports jobs within the shipbuilding and repairing sector, contributing to the maritime industrial base. The successful completion of this availability is vital for maintaining the Navy's fleet capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repairs are required beyond the firm fixed price scope.
Dependence on a single contractor for a critical availability could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of 766 days allows for comprehensive work execution.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, which is crucial for maintaining the U.S. Navy's fleet. Spending in this area is often substantial due to the complexity and specialized nature of naval vessel maintenance and upgrades.

Small Business Impact

While the award was made to Metro Machine Corp., the data does not indicate the extent of small business participation in this specific contract. Further analysis would be needed to determine the impact on small businesses in the supply chain.

Oversight & Accountability

The Department of the Navy's oversight will be critical to ensure the contractor meets performance standards and timelines. Robust contract management is essential for a project of this magnitude to ensure accountability and value for taxpayer money.

Related Government Programs

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

Risk Flags

Potential for scope creep and cost overruns.
Contractor performance risk.
Dependence on a single awardee for critical maintenance.
Complexity of modern naval vessel repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.6 million to METRO MACHINE CORP.. CNO AVAILABILITY FOR USS ARLINGTON FY23 DSRA

Who is the contractor on this award?

The obligated recipient is METRO MACHINE CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $156.6 million.

What is the period of performance?

Start: 2023-01-17. End: 2025-02-21.

What is the historical performance of Metro Machine Corp. on similar naval repair contracts?

Assessing Metro Machine Corp.'s past performance on comparable contracts is crucial for evaluating the risk associated with this award. A track record of timely completion, adherence to budget, and quality of work on previous DSRA or similar complex ship repair projects would provide confidence in their ability to execute this contract successfully and efficiently.

Are there any specific technological advancements or unique challenges anticipated for the USS Arlington's FY23 DSRA that could impact cost or schedule?

Understanding any unique technological requirements or anticipated challenges for the USS Arlington's FY23 DSRA is important for risk assessment. Unforeseen complexities, such as aging systems requiring extensive refurbishment or integration of new technologies, could lead to scope creep and budget overruns, even under a firm fixed price contract. Proactive identification and mitigation of these factors are key.

How does the awarded price compare to independent government cost estimates for this type of availability?

Comparing the awarded price of $156.6 million to independent government cost estimates is vital for validating value for money. A significant deviation from estimates, whether higher or lower, warrants further investigation. If the price is substantially higher, it may indicate a lack of sufficient competition or an underestimation of the work's complexity by the government. Conversely, a much lower bid could signal aggressive pricing or potential risks.

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: N0002422R4413

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 200 LIGON ST, NORFOLK, VA, 23523

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $159,077,814

Exercised Options: $156,636,940

Current Obligation: $156,636,940

Actual Outlays: $34,019,874

Subaward Activity

Number of Subawards: 80

Total Subaward Amount: $39,063,036

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline