DoD awards $47M for USS Mobile (LCS 26) FY24 DSRA, with BAE Systems Maritime Solutions Inc. as contractor

Contract Overview

Contract Amount: $46,992,691 ($47.0M)

Contractor: BAE Systems Maritime Solutions SAN Diego Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-14

End Date: 2026-02-13

Contract Duration: 487 days

Daily Burn Rate: $96.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CNO AVAILABILITY USS MOBILE (LCS 26) FY24 DSRA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $47.0 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: CNO AVAILABILITY USS MOBILE (LCS 26) FY24 DSRA Key points: 1. Contract value of $46.99M for a 487-day period suggests a significant investment in naval readiness. 2. The firm-fixed-price structure aims to control costs for the Department of the Navy. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract is for Ship Building and Repairing services, a critical component of naval maintenance. 5. The award date of October 14, 2024, aligns with the fiscal year 2024 requirements. 6. The contractor, BAE Systems Maritime Solutions, is a known entity in the defense sector. 7. The contract duration of 487 days points to a substantial scope of work.

Value Assessment

Rating: good

The contract value of $46.99M for 487 days of service for the USS Mobile (LCS 26) DSRA appears reasonable given the specialized nature of naval ship repair. Benchmarking against similar complex repair contracts for Littoral Combat Ships would provide a more precise value assessment. The firm-fixed-price contract type suggests an effort to establish a clear cost ceiling, which is positive for value management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While more than two bidders would ideally lead to greater price discovery, full and open competition is generally a positive sign for achieving fair market value.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was offered to the widest possible pool of qualified contractors, promoting competitive pricing and preventing potential price inflation associated with limited competition.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS Mobile (LCS 26) is maintained to high standards. Services delivered include Dry-docking, Selected Restricted Availability (DSRA), and associated repairs and maintenance. The geographic impact is centered in San Diego, California, where the contractor is located and likely where the work will be performed. This contract supports skilled labor within the shipbuilding and repairing sector, potentially including engineers, technicians, and shipyard workers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the extensive repair work.
Dependence on a single contractor for a critical maintenance period could pose risks if performance issues emerge.
The specialized nature of LCS repairs might limit the pool of truly competitive bidders in the long term.

Positive Signals

Firm-fixed-price contract helps mitigate cost uncertainty for the government.
Full and open competition, even with two bidders, suggests a baseline level of market engagement.
The contractor, BAE Systems Maritime Solutions, has established experience in naval shipbuilding and repair.

Sector Analysis

The shipbuilding and repairing sector is a vital component of the U.S. defense industrial base, supporting naval fleet readiness. This contract falls within the broader maritime defense industry, which is characterized by high technical barriers to entry and significant government investment. Comparable spending benchmarks for naval vessel maintenance and repair can vary widely based on ship class, age, and the scope of work required for availability periods.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is therefore neutral unless BAE Systems Maritime Solutions voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers responsible for naval vessel maintenance. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and detailed cost breakdowns may not be publicly disclosed.

Related Government Programs

Littoral Combat Ship (LCS) Program
Naval Ship Maintenance and Repair Contracts
Department of Defense Ship Building and Repair Spending
FY24 Defense Appropriations

Risk Flags

Potential for scope creep in complex repair contracts.
Dependence on contractor performance for critical fleet readiness.
Limited competitive landscape for specialized naval repair services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.0 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. CNO AVAILABILITY USS MOBILE (LCS 26) FY24 DSRA

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 $47.0 million.

What is the period of performance?

Start: 2024-10-14. End: 2026-02-13.

What is the historical spending pattern for the USS Mobile (LCS 26) for maintenance and repair services?

Historical spending data for the USS Mobile (LCS 26) prior to this FY24 DSRA award is not provided in the current data. However, Littoral Combat Ships (LCS) have historically faced challenges and significant investment in their maintenance and sustainment. The class has undergone various availability periods and upgrades. To understand the full historical context, one would need to examine previous contracts awarded for LCS maintenance, including availability periods, repair scopes, and associated costs for this specific vessel and potentially its sister ships within the LCS program. This would help establish a baseline for assessing whether the current $46.99M award represents an increase, decrease, or stable level of investment for its maintenance cycle.

How does the cost per day for this contract compare to similar LCS availability contracts?

The current contract for the USS Mobile (LCS 26) DSRA is valued at approximately $46.99 million over 487 days. This equates to a daily cost of roughly $96,494 ($46,992,691 / 487 days). Comparing this to similar Littoral Combat Ship availability contracts requires access to detailed historical data for other LCS vessels undergoing comparable maintenance. Factors such as the specific scope of work (e.g., hull repairs, system overhauls, upgrades), the shipyard's location and overhead, and the prevailing market rates at the time of award significantly influence cost per day. Without direct comparative data for similar DSRA periods on other LCS ships, it is difficult to definitively benchmark this figure. However, this daily rate provides a basis for future comparisons as more data becomes available.

What is BAE Systems Maritime Solutions' track record with the Littoral Combat Ship program?

BAE Systems Maritime Solutions has a significant presence and track record within the naval shipbuilding and repair industry. While the provided data lists them as the contractor for the USS Mobile (LCS 26) DSRA, their specific involvement with the Littoral Combat Ship (LCS) program prior to this award would need further investigation. Companies like BAE Systems often perform various roles, including new construction, major overhauls, and sustainment services for naval vessels. Their experience with complex naval platforms suggests they possess the technical capabilities required for LCS maintenance. A deeper dive into their contract history with the Navy, particularly concerning LCS vessels, would reveal the extent and nature of their prior work, including any performance metrics or past issues.

What are the primary risks associated with a firm-fixed-price contract for a complex naval repair like this?

The primary risk associated with a firm-fixed-price (FFP) contract for a complex naval repair, such as the DSRA for the USS Mobile (LCS 26), lies in the potential for unforeseen issues to arise during the execution of the work. While FFP contracts are designed to provide cost certainty to the government, they place the risk of cost overruns on the contractor. If BAE Systems Maritime Solutions encounters unexpected technical challenges, material shortages, or scope creep that was not adequately anticipated during the bidding process, they may incur losses. Conversely, if the contractor significantly underestimates the work, they might cut corners to maintain profitability, potentially impacting the quality of the repair. Effective contract management and clear definition of scope are crucial to mitigating these risks.

How does the competition level (2 bidders) impact the government's ability to secure the best value?

A competition level with two bidders, as indicated for this contract, represents a moderate level of competition. While it is better than a sole-source award, it may not achieve the same level of price discovery and innovation as a scenario with three or more bidders. With only two bidders, the government might not be leveraging the full competitive pressure to drive down prices to the absolute lowest possible point. However, 'full and open competition' ensures that the process was accessible to all qualified entities, and the presence of two bids suggests that the market is responsive. The government's ability to secure the best value also depends on the thoroughness of the evaluation criteria used beyond just price, such as technical approach and past performance.

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: N0002424R4408

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 2205 EAST BELT ST, SAN DIEGO, CA, 92113

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $47,724,245

Exercised Options: $46,992,691

Current Obligation: $46,992,691

Actual Outlays: $15,082,336

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $8,831,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline