Navy awards $2.28M contract for shipbuilding and repair services to BAE Systems Maritime Solutions

Contract Overview

Contract Amount: $22,820,720 ($22.8M)

Contractor: BAE Systems Maritime Solutions Norfolk Inc.

Awarding Agency: Department of Defense

Start Date: 2026-06-30

End Date: 2027-01-04

Contract Duration: 188 days

Daily Burn Rate: $121.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: PSA FOR HARVEY BARNUM JR. (DDG 124)

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: PSA FOR HARVEY BARNUM JR. (DDG 124) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The contract duration is 188 days, indicating a relatively short-term engagement. 4. The primary service is shipbuilding and repairing, a critical component of naval readiness. 5. The contract is managed by the Department of the Navy, a major defense spender. 6. The North American Industry Classification System (NAICS) code 336611 points to ship building and repairing.

Value Assessment

Rating: fair

The contract value of $2.28 million is modest for shipbuilding and repair. Without specific deliverables or a detailed scope of work, it's difficult to benchmark the value for money. The Cost Plus Award Fee structure allows for performance-based incentives, but the ultimate cost can vary. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar naval repair tasks.

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 number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value. The open competition suggests a healthy market for these services, potentially leading to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer through an open process.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive shipbuilding and repair services. This contract supports the maintenance and readiness of naval vessels. The services are likely to be performed in Virginia, where BAE Systems Maritime Solutions is located. The contract may have implications for the skilled workforce in the shipbuilding and repair sector in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess true value for money.
Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
The relatively short duration might indicate a specific, limited scope of work, requiring further clarification.
No specific small business subcontracting goals are indicated, potentially limiting small business participation.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The Cost Plus Award Fee structure includes incentives for contractor performance.
The contractor, BAE Systems, is a known entity in the defense sector.
The contract supports critical naval readiness through shipbuilding and repair.

Sector Analysis

The shipbuilding and repair sector is a vital part of the defense industrial base, supporting naval operations and national security. This contract falls within the broader manufacturing and repair of ships and boats industry. The market is characterized by large, established players like BAE Systems, often competing for significant government contracts. Spending in this sector is heavily influenced by defense budgets and geopolitical factors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While BAE Systems is a large prime contractor, there is no explicit information on subcontracting plans for small businesses. This means that opportunities for small businesses may depend on BAE Systems' own subcontracting strategy, and further investigation into their subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Award Fee contract, performance monitoring and cost control will be crucial. Transparency regarding the specific award fee criteria and performance evaluations would enhance accountability. Inspector General involvement would typically occur if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Naval Ship Maintenance Contracts
Shipbuilding and Repair Services
Defense Procurement
Department of the Navy Contracts

Risk Flags

Cost Plus Award Fee contract type requires careful oversight to manage costs.
Lack of detailed scope of work makes value assessment difficult.
Short contract duration may indicate a limited or preliminary task.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. PSA FOR HARVEY BARNUM JR. (DDG 124)

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $22.8 million.

What is the period of performance?

Start: 2026-06-30. End: 2027-01-04.

What specific shipbuilding or repair services are covered under this contract?

The provided data indicates the contract is for 'PSA FOR HARVEY BARNUM JR. (DDG 124)' and falls under NAICS code 336611 (Ship Building and Repairing). However, the specific nature of the services (e.g., routine maintenance, major overhaul, specific component repair, new construction support) is not detailed. The 'PSA' likely refers to a specific type of service or program. Without further documentation, it's impossible to ascertain the exact scope of work. This lack of detail makes it challenging to compare pricing or assess the true value delivered.

How does the $2.28 million contract value compare to similar contracts for DDG-class destroyers?

The $2.28 million value appears relatively low for significant work on a DDG-class destroyer, which are large and complex vessels. Major overhauls or modernization efforts for such ships typically run into tens or hundreds of millions of dollars. This contract might represent a smaller, specific task, a component repair, or a preliminary service phase. Benchmarking requires comparing it to contracts with similar scopes of work, which are not detailed here. The contract duration of 188 days also suggests a limited scope.

What are the performance metrics and award fee criteria for this Cost Plus Award Fee contract?

The provided data specifies the contract type as 'COST PLUS AWARD FEE' (PT: COST PLUS AWARD FEE) but does not detail the specific performance metrics or the criteria used to determine the award fee. In CPFF contracts, the government estimates costs and adds a fixed fee, with the potential for an award fee based on exceeding performance expectations. Understanding these criteria (e.g., schedule adherence, quality standards, technical performance) is crucial for assessing how contractor performance is incentivized and how taxpayer money is being managed to achieve desired outcomes.

What is the track record of BAE Systems Maritime Solutions on similar Navy contracts?

BAE Systems is a major defense contractor with extensive experience in shipbuilding and naval support. BAE Systems Maritime Solutions, specifically, has a significant history of working with the U.S. Navy on various vessel classes, including destroyers. While this specific contract is for a modest amount, the company has managed much larger and more complex shipbuilding and repair programs. Their track record generally involves delivering complex systems and services, though like any large contractor, they have faced scrutiny on specific projects regarding cost and schedule performance.

What is the historical spending pattern for shipbuilding and repair services by the Department of the Navy?

The Department of the Navy consistently allocates substantial portions of its budget to shipbuilding and repair, reflecting the need to maintain and modernize a large fleet. Historical spending includes major shipbuilding programs (like aircraft carriers, submarines, and destroyers), as well as extensive maintenance, modernization, and repair contracts for existing vessels. Annual spending in this category often runs into the tens of billions of dollars. This $2.28 million contract represents a very small fraction of that overall historical expenditure, likely addressing a specific, localized need.

Are there any identified risks associated with this specific contract or the services provided?

Potential risks include cost overruns inherent in Cost Plus contracts if not managed diligently, potential schedule delays impacting naval readiness, and the possibility that the scope of work might expand beyond the initial $2.28 million. Given the nature of shipbuilding and repair, technical challenges or unforeseen issues with the vessel (DDG 124) could also pose risks. The relatively short duration might also indicate a risk of scope creep if the initial task is not fully defined.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002425R2301

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523

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: $48,722,784

Exercised Options: $24,361,392

Current Obligation: $22,820,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline