DoD's $134.7M Contract for CVN 68 Inactivation & Defueling Advance Planning Awarded to Huntington Ingalls Inc

Contract Overview

Contract Amount: $134,715,780 ($134.7M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-13

End Date: 2027-10-18

Contract Duration: 949 days

Daily Burn Rate: $142.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CVN 68 INACTIVATION & DEFUELING ADVANCE PLANNING

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $134.7 million to HUNTINGTON INGALLS INC for work described as: CVN 68 INACTIVATION & DEFUELING ADVANCE PLANNING Key points: 1. Significant investment in the inactivation and defueling of a major naval asset. 2. Sole-source award to a key defense contractor raises questions about competition. 3. Long-term contract duration (949 days) suggests a complex and lengthy process. 4. Focus on advance planning indicates a critical, early-stage project for the Navy.

Value Assessment

Rating: questionable

The contract value of $134.7M for advance planning is substantial. Benchmarking against similar inactivation and defueling planning contracts is difficult due to the unique nature of aircraft carriers and the limited public data available for such specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one contractor was deemed capable or available to perform the work. This lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process.

Taxpayer Impact: The absence of competition for this significant contract means taxpayers may have paid a premium for the advance planning services, as there was no market pressure to drive down costs.

Public Impact

Taxpayer funds are being allocated for the complex process of decommissioning a nuclear-powered aircraft carrier. The contract's success will impact the Navy's long-term fleet management and readiness. Advance planning is crucial to ensure safety and environmental compliance during defueling and inactivation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
High contract value for planning phase.
Long contract duration.
Potential for cost overruns in complex inactivation process.

Positive Signals

Essential service for naval fleet modernization.
Award to established, experienced contractor.
Clear contract end date for planning.

Sector Analysis

The defense sector, particularly shipbuilding and repair, involves highly specialized and often large-scale contracts. Spending benchmarks for aircraft carrier inactivation and defueling are scarce due to the unique nature of these assets and the limited number of carriers requiring such services.

Small Business Impact

This contract was awarded to Huntington Ingalls Inc., a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Given the sole-source nature and the complexity of the work, robust oversight will be critical to ensure cost control, adherence to schedule, and proper execution of the advance planning.

Related Government Programs

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

Risk Flags

Sole-source award limits price discovery.
High value for an advance planning contract.
Potential for scope creep in long-duration planning.
Complexity of nuclear aircraft carrier inactivation.
Lack of public benchmarks for similar services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $134.7 million to HUNTINGTON INGALLS INC. CVN 68 INACTIVATION & DEFUELING ADVANCE PLANNING

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 $134.7 million.

What is the period of performance?

Start: 2025-03-13. End: 2027-10-18.

What is the estimated total cost for the full inactivation and defueling of the CVN 68, and how does this advance planning contract contribute to that overall budget?

The provided data only details the advance planning contract value ($134.7M). The total cost for the full inactivation and defueling of the CVN 68 is not specified. This advance planning contract is a crucial first step, aiming to define the scope, identify risks, and develop a detailed plan that will inform the subsequent, likely much larger, execution phase budget.

What specific risks are being addressed in this advance planning phase, and what mitigation strategies are being developed by Huntington Ingalls Inc.?

While specific risks are not detailed, typical risks for aircraft carrier inactivation and defueling include nuclear material handling safety, environmental containment, hazardous material disposal, structural integrity during dismantling, and secure storage of components. The advance planning phase would focus on identifying these risks, assessing their probability and impact, and developing preliminary mitigation strategies and contingency plans.

How will the effectiveness of this advance planning contract be measured, and what criteria will be used to determine if the Navy received good value for its investment?

Effectiveness will likely be measured by the completeness and accuracy of the inactivation and defueling plan, the identification of potential cost savings and efficiencies, and the successful mitigation of identified risks. Value will be assessed by comparing the planning costs against the overall projected costs of the full inactivation, ensuring the plan enables a smoother, safer, and more cost-effective execution phase than might otherwise be achieved.

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: N0002424R2127

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: $373,495,337

Exercised Options: $138,108,140

Current Obligation: $134,715,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline