DoD Modifies Huntington Ingalls Contract by $71.9M for Continued Performance Amid ACRN Shortages

Contract Overview

Contract Amount: $71,931,550 ($71.9M)

Contractor: Huntington Ingalls Incorporated

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2026-05-27

Contract Duration: 392 days

Daily Burn Rate: $183.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: THIS MODIFICATION IS ISSUED FOR ADMINISTRATIVE PURPOSES TO FACILITATE CONTINUED CONTRACT PERFORMANCE DUE TO LIMITED AVAILABILITY OF ACRNS ON CONTRACT N00024-21-C-4205. THIS MODIFICATION IS AUTHORIZED IN ACCORDANCE WITH FAR 4.1601 AND DFARS 204.1601

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $71.9 million to HUNTINGTON INGALLS INCORPORATED for work described as: THIS MODIFICATION IS ISSUED FOR ADMINISTRATIVE PURPOSES TO FACILITATE CONTINUED CONTRACT PERFORMANCE DUE TO LIMITED AVAILABILITY OF ACRNS ON CONTRACT N00024-21-C-4205. THIS MODIFICATION IS AUTHORIZED IN ACCORDANCE WITH FAR 4.1601 AND DFARS 204.1601 Key points: 1. Contract modification aims to ensure ongoing performance by addressing limited ACRN availability. 2. The modification is administrative, not for new work, but facilitates continued operations. 3. The contract is with Huntington Ingalls, a major defense contractor. 4. The sector is Ship Building and Repairing, a critical defense industry.

Value Assessment

Rating: fair

The modification adds $71.9M to the contract value. Without specific cost breakdowns or performance metrics for this modification, it's difficult to assess its value definitively. However, it's presented as necessary for continued performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was initially awarded under full and open competition. This modification is administrative and does not appear to alter the competitive nature or pricing structure established previously.

Taxpayer Impact: Taxpayer funds are being used to ensure the continuation of a critical defense contract, preventing potential disruptions in shipbuilding and repair.

Public Impact

Ensures continued operation of a significant shipbuilding and repair contract for the Navy. Supports the readiness of naval assets through ongoing maintenance and construction. Maintains the operational capacity of a key defense industrial base contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Administrative modification due to ACRN limitations may indicate underlying logistical or financial management issues.
Lack of detail on the specific impact of ACRN limitations on performance.

Positive Signals

Ensures continuity of critical shipbuilding and repair services.
Authorization follows established Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) guidelines.

Sector Analysis

The Ship Building and Repairing sector is vital for national defense, involving complex, long-term contracts. Spending benchmarks are highly variable based on vessel type and scope of work.

Small Business Impact

This modification does not directly address small business participation. The primary contractor, Huntington Ingalls, is a large business. Subcontracting opportunities for small businesses would depend on the nature of the continued performance.

Oversight & Accountability

The modification cites FAR and DFARS for authorization, indicating adherence to regulatory oversight. However, the underlying reason for ACRN limitations warrants further scrutiny to ensure accountability.

Related Government Programs

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

Risk Flags

Potential for future performance disruptions if ACRN issue is not permanently resolved.
Lack of transparency regarding the specific impact of ACRN limitations.
Administrative nature of the modification may mask underlying logistical or financial challenges.
Cost implications beyond the current modification are uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.9 million to HUNTINGTON INGALLS INCORPORATED. THIS MODIFICATION IS ISSUED FOR ADMINISTRATIVE PURPOSES TO FACILITATE CONTINUED CONTRACT PERFORMANCE DUE TO LIMITED AVAILABILITY OF ACRNS ON CONTRACT N00024-21-C-4205. THIS MODIFICATION IS AUTHORIZED IN ACCORDANCE WITH FAR 4.1601 AND DFARS 204.1601

Who is the contractor on this award?

The obligated recipient is HUNTINGTON INGALLS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $71.9 million.

What is the period of performance?

Start: 2025-04-30. End: 2026-05-27.

What is the specific impact of the limited availability of ACRNs on contract performance, and what steps are being taken to resolve this issue permanently?

The modification is issued to facilitate continued contract performance due to limited availability of ACRNs. While the exact nature of the performance impact is not detailed, it necessitates this administrative change. The long-term resolution of ACRN availability issues is crucial to prevent future disruptions and ensure efficient contract management.

How does this administrative modification affect the overall cost and schedule of the original contract, beyond the $71.9M increase?

This modification is primarily administrative to ensure continued performance. While it adds $71.9M, the intent is to maintain the original contract's trajectory. However, the underlying ACRN issue could potentially lead to future delays or cost overruns if not fully resolved, impacting the overall cost and schedule.

What oversight mechanisms are in place to monitor the effective utilization of the additional funds and ensure the resolution of the ACRN availability problem?

Standard contract oversight mechanisms by the Department of the Navy would apply. This includes monitoring performance, expenditures, and adherence to contract terms. Specific oversight related to the ACRN issue would involve tracking the root cause and ensuring corrective actions are implemented by the contractor and monitored by the government.

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: N0002420R4205

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 1000 ACCESS RD, PASCAGOULA, MS, 39567

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

Financial Breakdown

Contract Ceiling: $212,852,972

Exercised Options: $84,244,469

Current Obligation: $71,931,550

Actual Outlays: $886,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline