Navy awards $198.5M for USS America (LHA 6) docking, National Steel and Shipbuilding Company wins contract

Contract Overview

Contract Amount: $198,505,719 ($198.5M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2025-05-20

End Date: 2027-09-17

Contract Duration: 850 days

Daily Burn Rate: $233.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS AMERICA (LHA 6) FY26 DOCKING SELECTED RESTRICTED AVAILABILITY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $198.5 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: USS AMERICA (LHA 6) FY26 DOCKING SELECTED RESTRICTED AVAILABILITY Key points: 1. Contract awarded for a significant docking availability, indicating critical maintenance needs for a major naval asset. 2. The contract value represents a substantial investment in maintaining the operational readiness of a key amphibious assault ship. 3. The duration of the availability (850 days) suggests a comprehensive overhaul and modernization effort. 4. The firm-fixed-price structure aims to control costs and provide predictability for the Navy. 5. Awarded to a single contractor, highlighting the specialized nature of the required services. 6. The contract is for a future fiscal year (FY26), suggesting long-term planning and budgeting by the Department of Defense.

Value Assessment

Rating: good

The contract value of $198.5 million for an 850-day docking availability for a large amphibious assault ship appears reasonable given the complexity and specialized nature of naval vessel maintenance. Benchmarking against similar complex availabilities for LHA-class ships would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to manage cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, which typically leads to better pricing and terms for the government. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the procurement process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives down costs and encourages innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS America (LHA 6) is maintained to high standards. The services delivered include extensive docking, repair, and potential modernization of a major naval vessel. The geographic impact is primarily centered in California, where the ship is likely based or where the repair facility is located. This contract supports a specialized segment of the maritime industrial workforce, including skilled tradespeople in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the long duration and complexity of naval ship maintenance.
Risk of cost growth if unforeseen issues arise during the extensive overhaul, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical maintenance period could pose risks if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Long-term planning indicated by the FY26 award demonstrates proactive resource allocation for asset readiness.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense, involving highly specialized facilities and skilled labor. This contract falls within the broader maritime industrial base, which is essential for maintaining naval fleets. Spending in this sector is often characterized by large, complex contracts with long lead times and significant technological requirements. Comparable spending benchmarks would involve analyzing other major naval vessel availabilities and new construction contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Given the specialized and large-scale nature of naval ship docking and repair, it is common for prime contractors to be large, established firms. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is typically maintained through contract award announcements and public reporting, though specific oversight details are not provided in this data.

Related Government Programs

Naval Ship Maintenance and Repair
Amphibious Assault Ship Programs
Shipbuilding and Repair Contracts
Department of Defense Shipyards
Fleet Readiness Programs

Risk Flags

Long contract duration increases risk of unforeseen issues.
Specialized nature of naval vessel repair requires specific expertise.
Firm-fixed-price contracts can sometimes lead to reduced scope if issues arise.
Dependence on a single large contractor for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $198.5 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. USS AMERICA (LHA 6) FY26 DOCKING SELECTED RESTRICTED AVAILABILITY

Who is the contractor on this award?

The obligated recipient is NATIONAL STEEL AND SHIPBUILDING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $198.5 million.

What is the period of performance?

Start: 2025-05-20. End: 2027-09-17.

What is the historical spending pattern for USS America (LHA 6) docking and maintenance over the past five years?

Analyzing historical spending for the USS America (LHA 6) is crucial for understanding long-term maintenance costs and identifying any trends or anomalies. Without specific historical data, it's difficult to provide a precise pattern. However, major naval vessels typically undergo periodic availabilities for maintenance, repair, and modernization. These can range from routine dockings to more extensive overhauls, with costs varying significantly based on the scope of work. For an LHA-class ship, significant investments are expected throughout its lifecycle. Comparing the current $198.5 million award to previous availabilities would reveal if this represents an increase, decrease, or is in line with historical expenditures, helping to assess value and budget predictability.

How does the awarded price compare to similar LHA-class ship docking availabilities?

To assess the value for money, comparing the $198.5 million awarded price to similar docking availabilities for other LHA-class ships is essential. LHA-class ships are large, complex vessels, and their maintenance requirements can be substantial. Factors influencing cost include the specific scope of work (e.g., routine maintenance vs. major upgrades), the shipyard's location and overhead, and the prevailing market rates for labor and materials at the time of award. If data from comparable contracts shows similar availabilities costing significantly more or less, it would indicate whether this contract represents a good deal for the Navy. A higher price might be justified by a broader scope of work or unique circumstances, while a lower price could suggest effective competition or efficient execution by the contractor.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract?

The contract likely includes specific Key Performance Indicators (KPIs) related to schedule adherence, quality of work, and adherence to technical specifications. For a firm-fixed-price contract of this magnitude and duration, risk mitigation strategies are paramount. These typically involve detailed inspection and acceptance criteria, phased payments tied to milestones, and potentially performance bonds. The Navy will likely have dedicated project managers and technical representatives overseeing the work to ensure compliance. Potential risks such as unforeseen structural issues, material availability delays, or labor disputes would need to be addressed through contractual clauses and proactive management by both the Navy and National Steel and Shipbuilding Company.

What is the track record of National Steel and Shipbuilding Company (NASSCO) in performing similar naval docking contracts?

National Steel and Shipbuilding Company (NASSCO) has a significant track record in constructing and repairing naval vessels, including amphibious assault ships. Their experience with the LHA and LHD classes is extensive, making them a logical choice for such a critical availability. Assessing their past performance on similar contracts would involve reviewing contract histories for on-time delivery, budget adherence, and quality of work. NASSCO's established infrastructure and expertise in naval shipbuilding and repair suggest a lower risk profile for executing this complex docking availability. However, a thorough review of their recent performance metrics and any past issues on comparable contracts would provide a more complete picture of their capabilities and reliability.

What is the potential impact of this contract on the overall readiness of the U.S. Navy's amphibious assault fleet?

The docking and maintenance of the USS America (LHA 6) are critical for maintaining the overall readiness of the U.S. Navy's amphibious assault fleet. These ships are vital for projecting power, supporting Marine Corps operations, and conducting humanitarian assistance and disaster relief missions. Ensuring the USS America is fully operational through this extensive availability means one less ship will be unavailable for extended periods. The timely completion of this contract directly contributes to the Navy's ability to meet its operational commitments and maintain a credible presence globally. Delays or significant issues with this availability could impact fleet deployment schedules and operational capacity.

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: N0002425R4404

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2798 HARBOR DR, SAN DIEGO, CA, 92113

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: $222,966,485

Exercised Options: $198,505,719

Current Obligation: $198,505,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline