DoD Awards $214M Firm Fixed Price Contract to BAE Systems for USS Halsey CNO Availability
Contract Overview
Contract Amount: $214,338,632 ($214.3M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-08
End Date: 2026-06-30
Contract Duration: 752 days
Daily Burn Rate: $285.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Ship Building and Repair
Official Description: CNO AVAILABILITY FOR USS HALSEY FY24 DMP
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $214.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: CNO AVAILABILITY FOR USS HALSEY FY24 DMP Key points: 1. Significant contract value of $214.3M for ship maintenance. 2. Sole-source award to BAE Systems raises questions about competition. 3. Potential risk associated with a single vendor for critical naval maintenance. 4. Spending falls within the Ship Building and Repair sector.
Value Assessment
Rating: fair
The contract value of $214.3M for a 752-day period appears substantial. Benchmarking against similar CNO availabilities for destroyers is needed to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition for this large contract could lead to taxpayers paying a premium for the required ship maintenance services.
Public Impact
Ensures operational readiness of the USS Halsey. Supports critical naval infrastructure maintenance. Impacts the shipbuilding and repair industry in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Supports naval readiness
- Firm fixed price contract
Sector Analysis
This contract falls under the Ship Building and Repair sector, which is crucial for maintaining the U.S. Navy's fleet. Spending in this sector can be substantial and is often characterized by complex, high-value contracts.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation is needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not pursuing competitive bidding. Oversight is needed to confirm the necessity of this approach.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited price discovery.
- No indication of small business participation.
- High contract value requires strong justification.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $214.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. CNO AVAILABILITY FOR USS HALSEY FY24 DMP
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 $214.3 million.
What is the period of performance?
Start: 2024-06-08. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must document the rationale and explore competitive alternatives before awarding sole-source contracts to ensure fair and reasonable pricing for the government.
How does the $214.3M contract value compare to historical CNO availabilities for similar vessels?
Benchmarking this $214.3M contract against historical CNO availabilities for comparable naval vessels is essential for assessing value. Without comparative data, it's difficult to determine if the price is reasonable or if it represents an overpayment due to the lack of competition.
What are the potential risks associated with a sole-source award for critical ship maintenance?
Sole-source awards for critical ship maintenance carry risks such as inflated pricing, reduced innovation, and potential vendor lock-in. The absence of competition can lead to less favorable terms and potentially lower quality if the sole provider faces no pressure to excel. This also limits opportunities for other qualified businesses.
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: N0002424R4423
Offers Received: 1
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: $214,340,557
Exercised Options: $214,338,632
Current Obligation: $214,338,632
Actual Outlays: $28,092,667
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $4,899,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-06-08
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-05
More Contracts from BAE Systems Maritime Solutions SAN Diego Inc.
- Execution Planning DDG 91 FY 12 SRA; DDG SAN Diego Msmo — $875.7M (Department of Defense)
- CG SAN Diego Msmo — $818.6M (Department of Defense)
- Federal Contract — $512.6M (Department of Defense)
- 200506!179106!1700!n00024!naval SEA Systems Command !N0002405C4409 !A!N! !N! ! !20050324!20100930!080911274!824825459!217304393!n!bae Systems SAN Diego Ship Rep!foot of Sampson ST !SAN Diego !ca!92170!66000!073!06!san Diego !SAN Diego !california!+000000027495!n!n!000044294130!j999!non-Nuclear Ship Repair (west) !A3 !ships !000 !* !336611!E! !3! ! ! ! ! !20200930!B! ! !A! !a!u!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! !N! !Y!1700!N00024!0001! ! — $413.0M (Department of Defense)
- SAN Diego LPD 4&LSD 41/49 Non-Docking Msmo — $363.6M (Department of Defense)
View all BAE Systems Maritime Solutions SAN Diego Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)