DoD Awards $658.9M Contract for STEAM Plant Manual to Huntington Ingalls Inc

Contract Overview

Contract Amount: $6,589,422 ($6.6M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2027-09-30

Contract Duration: 1,002 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STEAM PLANT MANUAL

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to HUNTINGTON INGALLS INC for work described as: STEAM PLANT MANUAL Key points: 1. Significant contract value of $658.9 million awarded. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of over three years suggests a substantial project scope. 4. Focus on ship building and repair indicates a specialized sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar ship building and repair contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for this large contract could mean taxpayers are not receiving the best possible value, potentially leading to overspending.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The Department of Defense continues to invest heavily in naval infrastructure and maintenance. The long-term duration of the contract impacts budget allocation for future fiscal years.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition
High contract value

Positive Signals

Clear contract duration
Specific agency and service identified

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a critical area for the Department of Defense. Spending in this sector is often high due to the complexity and specialized nature of naval assets.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine potential subcontracting opportunities.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract's life.

Related Government Programs

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

Risk Flags

Potential for overpayment due to sole-source award.
Cost Plus Fixed Fee structure may incentivize higher spending.
Lack of transparency regarding competition justification.
Limited visibility into specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to HUNTINGTON INGALLS INC. STEAM PLANT MANUAL

Who is the contractor on this award?

The obligated recipient is HUNTINGTON INGALLS 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 $6.6 million.

What is the period of performance?

Start: 2025-01-01. End: 2027-09-30.

What specific justification was provided for the sole-source award of this significant contract?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or when a compelling urgency exists. Further investigation into the contract file or agency justifications would be required to understand the rationale behind this decision.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar services?

Without detailed cost breakdowns and specific performance metrics, it is challenging to benchmark the fixed fee against industry standards. The 'fixed fee' in a CPFF contract represents the contractor's profit. Its reasonableness depends on the complexity, risk, and duration of the effort, as well as the contractor's historical performance and market rates.

What are the key performance indicators (KPIs) and deliverables expected under this STEAM Plant Manual contract?

The provided data does not specify the key performance indicators or detailed deliverables for the STEAM Plant Manual contract. Understanding these elements is crucial for assessing the contract's effectiveness and ensuring the Department of the Navy receives the intended value. These details would typically be found in the contract's statement of work.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002424R2122

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 4101 WASHINGTON AVE, NEWPORT NEWS, VA, 23607

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

Financial Breakdown

Contract Ceiling: $20,968,469

Exercised Options: $12,260,255

Current Obligation: $6,589,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline