Navy's $128M USS Oak Hill DSRA Awarded to Metro Machine Corp. Amidst Full and Open Competition

Contract Overview

Contract Amount: $128,219,409 ($128.2M)

Contractor: Metro Machine Corp.

Awarding Agency: Department of Defense

Start Date: 2025-04-18

End Date: 2027-02-03

Contract Duration: 656 days

Daily Burn Rate: $195.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS OAK HILL (LSD 51) FY25 DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA)

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $128.2 million to METRO MACHINE CORP. for work described as: USS OAK HILL (LSD 51) FY25 DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA) Key points: 1. The contract value of $128.2 million for the USS Oak Hill's docking availability represents a significant investment in naval readiness. 2. Metro Machine Corp. secured the contract through full and open competition, indicating a competitive bidding process. 3. The risk associated with this contract lies in the potential for cost overruns or schedule delays in complex ship repair. 4. The sector is Ship Building and Repairing, a critical component of national defense infrastructure.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. However, the benchmark of $195,456 for 'br' (likely a specific repair component or metric) needs further context to fully assess value against similar complex availabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing multiple bidders to participate. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential naval maintenance.

Public Impact

Ensures the operational readiness of a key naval asset, the USS Oak Hill. Supports jobs within the shipbuilding and repair industry, contributing to the maritime economy. Highlights the government's commitment to maintaining a robust fleet through competitive contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex ship repair.
Dependence on a single contractor for a critical availability.
Schedule adherence for a multi-year project.

Positive Signals

Awarded via full and open competition.
Firm fixed price contract type.
Clear contract duration and performance period.

Sector Analysis

The Ship Building and Repairing sector is vital for maintaining naval fleet readiness. Spending in this area is often project-specific and driven by operational needs and vessel lifecycles, with significant investments required for complex overhauls like this DSRA.

Small Business Impact

While the primary awardee is Metro Machine Corp., the contract's execution may involve subcontracting opportunities for small businesses in specialized repair or supply chain roles within the maritime industry.

Oversight & Accountability

The Department of the Navy's oversight will be crucial to ensure Metro Machine Corp. adheres to the contract's terms, quality standards, and schedule, particularly given the complexity and duration of the availability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to unforeseen repair needs.
Risk of schedule delays impacting fleet readiness.
Dependence on contractor's technical expertise and capacity.
Cybersecurity risks associated with ship systems during repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.2 million to METRO MACHINE CORP.. USS OAK HILL (LSD 51) FY25 DOCKING SELECTED RESTRICTED AVAILABILITY (DSRA)

Who is the contractor on this award?

The obligated recipient is METRO MACHINE CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $128.2 million.

What is the period of performance?

Start: 2025-04-18. End: 2027-02-03.

How does the awarded price compare to historical DSRA costs for similar amphibious assault ships?

A comprehensive comparison requires access to historical data for similar vessels and availabilities. Factors like the specific scope of work, age of the vessel, and market conditions at the time of bidding significantly influence pricing. Without this comparative data, it's challenging to definitively state if this $128.2 million award represents optimal value, though the firm fixed price and full competition are positive indicators.

What are the primary risks associated with a multi-year, complex ship repair availability like this?

Key risks include unforeseen structural issues discovered during the overhaul, which can lead to scope creep and cost increases. Supply chain disruptions for specialized parts, labor availability, and the contractor's ability to meet stringent quality and safety standards are also significant concerns. Furthermore, delays in the availability schedule can impact the Navy's operational deployment plans.

How effectively does this contract ensure the long-term operational effectiveness of the USS Oak Hill?

This DSRA is designed to address critical maintenance and upgrade requirements, directly contributing to the USS Oak Hill's long-term operational effectiveness and extending its service life. The comprehensive nature of the availability, coupled with the firm fixed price contract, aims to ensure all necessary work is completed to maintain the vessel's combat readiness and mission capability.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002425R4400

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 200 LIGON ST, NORFOLK, VA, 23523

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

Financial Breakdown

Contract Ceiling: $139,730,766

Exercised Options: $128,278,008

Current Obligation: $128,219,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline