DoD Awards $14.6M Contract for Third Party Fire Watch Support on CVN 74 & 75
Contract Overview
Contract Amount: $14,606,355 ($14.6M)
Contractor: Mills Marine & Ship Repair LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-13
End Date: 2026-10-12
Contract Duration: 1,095 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIRD PARTY FIRE WATCH SUPPORT FOR CVN 74 AND, IF OPTIONS ARE EXERCISED, CVN 75 RCOH
Place of Performance
Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to MILLS MARINE & SHIP REPAIR LLC for work described as: THIRD PARTY FIRE WATCH SUPPORT FOR CVN 74 AND, IF OPTIONS ARE EXERCISED, CVN 75 RCOH Key points: 1. Contract awarded to Mills Marine & Ship Repair LLC for essential fire watch services. 2. The contract covers two aircraft carriers, CVN 74 and CVN 75, with potential for expansion. 3. Competition method indicates a focus on open bidding, potentially leading to better pricing. 4. The sector is Ship Building and Repairing, a critical area for naval operations.
Value Assessment
Rating: good
The contract value of $14.6 million for a 3-year period appears reasonable given the specialized nature of fire watch support during complex ship maintenance like RCOH. Benchmarking against similar specialized maritime support contracts 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 AFTER EXCLUSION OF SOURCES,' suggesting an initial limited scope that was then opened to broader competition. This method aims to ensure fair pricing and access to qualified vendors.
Taxpayer Impact: The competitive bidding process is designed to secure the best value for taxpayers by encouraging multiple bids and potentially driving down costs for essential services.
Public Impact
Ensures safety and operational readiness of critical naval assets. Supports the complex maintenance and repair schedules of aircraft carriers. Provides specialized services essential for shipyard operations and personnel safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Dependence on a single awardee for critical safety services.
Positive Signals
- Awarded through full and open competition.
- Supports essential naval operations and safety.
- Long-term contract duration provides stability.
Sector Analysis
The Ship Building and Repairing sector is vital for national defense, involving complex and high-value contracts. Spending in this sector is often driven by fleet readiness and modernization needs, with significant taxpayer investment.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for cost-plus contracts would apply to ensure compliance and manage costs effectively.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Potential for cost overruns.
- Reliance on specialized third-party services.
- Critical safety function dependent on contractor performance.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to MILLS MARINE & SHIP REPAIR LLC. THIRD PARTY FIRE WATCH SUPPORT FOR CVN 74 AND, IF OPTIONS ARE EXERCISED, CVN 75 RCOH
Who is the contractor on this award?
The obligated recipient is MILLS MARINE & SHIP REPAIR LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2023-10-13. End: 2026-10-12.
What is the typical cost range for third-party fire watch support during a major ship overhaul?
The cost for third-party fire watch support during major ship overhauls can vary significantly based on the vessel's size, the duration of the overhaul, the specific requirements for fire prevention and monitoring, and the geographic location. While this contract is valued at $14.6 million over three years, comparable contracts might range from a few hundred thousand to several million dollars annually, depending on these factors.
What are the primary risks associated with a Cost Plus Fixed Fee contract for fire watch services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to potential cost overruns if not closely monitored. For fire watch services, risks also include potential lapses in vigilance, inadequate training, or failure to respond effectively to emergencies, impacting safety and operational continuity.
How effective is 'full and open competition after exclusion of sources' in ensuring competitive pricing for specialized maritime services?
This procurement method can be effective in ensuring competitive pricing for specialized services by first identifying a pool of qualified vendors and then opening the competition to all. It balances the need for specialized expertise with the goal of broad market participation. However, the 'exclusion of sources' aspect needs careful justification to ensure it doesn't unduly limit competition and that the subsequent open competition truly drives down costs.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002423R2101
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 211 MARKET ST, SUFFOLK, VA, 23434
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $48,497,929
Exercised Options: $17,674,337
Current Obligation: $14,606,355
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-13
Current End Date: 2026-10-12
Potential End Date: 2028-10-12 00:00:00
Last Modified: 2025-10-10
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