DoD awards $251M for USS GREEN BAY (LPD 20) FY25 Drydocking and Scheduled Repair and Alteration

Contract Overview

Contract Amount: $250,944,541 ($250.9M)

Contractor: BAE Systems Maritime Solutions SAN Diego Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-22

End Date: 2026-12-01

Contract Duration: 739 days

Daily Burn Rate: $339.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS GREEN BAY (LPD 20) FY25 DSRA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $250.9 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS GREEN BAY (LPD 20) FY25 DSRA Key points: 1. Contract awarded to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for ship repair services. 2. The contract is a firm-fixed-price definitive contract with an estimated completion date in December 2026. 3. This award represents a significant investment in maintaining naval readiness for a key amphibious transport dock ship. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process. 5. The duration of the contract is approximately 739 days, indicating a substantial scope of work. 6. The base award amount is $250,944,541.29, with potential for adjustments based on contract performance.

Value Assessment

Rating: good

The contract value of $251 million for the USS GREEN BAY's FY25 DSRA appears to be within a reasonable range for major ship repair and modernization efforts. While specific benchmarks for this exact class of vessel and scope of work are not publicly detailed, similar large-scale drydocking and repair contracts for naval vessels often fall into the hundreds of millions of dollars. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would require comparison with recent repair contracts for sister ships (LPD 17 class) to establish a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple ship repair companies likely had the opportunity to compete. The presence of full and open competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The specific number of bidders is not provided, but the designation implies a healthy competitive environment.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it is designed to secure the best possible pricing and terms for the government by fostering a market-driven approach to contract awards.

Public Impact

The primary beneficiaries are the U.S. Navy and the operational readiness of the USS GREEN BAY (LPD 20). The contract will ensure the ship undergoes necessary repairs and alterations to maintain its combat effectiveness and extend its service life. The work will be performed in San Diego, California, providing a significant economic boost to the local maritime industry and its workforce. This contract supports skilled jobs in shipbuilding, repair, and related technical fields within the San Diego region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive repair work, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical and lengthy repair period could pose risks if performance issues emerge.
The long duration of the contract (739 days) increases the potential for schedule delays impacting naval deployment plans.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured favorable pricing.
Firm-fixed-price contract provides cost certainty for the government, limiting exposure to unexpected cost increases.
Contractor, BAE Systems Maritime Solutions, has significant experience in naval ship repair and maintenance.
The contract aims to enhance the operational readiness and lifespan of a key naval asset.

Sector Analysis

The U.S. Navy's ship repair and maintenance sector is a critical component of national defense, involving specialized facilities and highly skilled labor. This contract falls within the broader shipbuilding and repair industry, which is characterized by large, complex projects often awarded through competitive bidding. The market size for naval ship repair is substantial, driven by the need to maintain a large and aging fleet. This specific contract for an LPD-class vessel represents a significant portion of annual spending for major overhauls within this specialized segment of the defense industrial base.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While BAE Systems Maritime Solutions is a large prime contractor, the nature of such extensive ship repair typically requires specialized capabilities and infrastructure that may not be readily available from smaller firms. However, it is common practice for large prime contractors to subcontract portions of the work to small businesses, potentially creating opportunities within the small business ecosystem. The extent of small business subcontracting will be a key factor in assessing the broader impact on this sector.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award announcements and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Performance monitoring throughout the repair period will be crucial to ensure adherence to specifications and timelines.

Related Government Programs

Naval Ship Repair and Maintenance
Amphibious Transport Dock Ships (LPD Class)
Department of Defense Ship Building and Repair
Fleet Readiness and Maintenance Contracts
Drydocking and Overhaul Services

Risk Flags

Potential for schedule delays impacting fleet readiness.
Risk of cost increases if unforeseen issues arise during repair.
Contractor performance monitoring is critical for quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $250.9 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS GREEN BAY (LPD 20) FY25 DSRA

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO 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 $250.9 million.

What is the period of performance?

Start: 2024-11-22. End: 2026-12-01.

What is the track record of BAE Systems Maritime Solutions in performing similar large-scale naval ship repair contracts?

BAE Systems Maritime Solutions is a well-established entity with extensive experience in naval shipbuilding and repair. They have a history of performing complex maintenance, modernization, and repair work on a variety of U.S. Navy vessels, including amphibious assault ships and destroyers. Their San Diego facility is a major hub for naval repair on the West Coast. While specific details on past performance for LPD-class DSRA contracts of this exact magnitude are not detailed here, their overall portfolio suggests a strong capability to undertake such projects. Performance metrics from previous contracts, if available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more granular view of their reliability, quality, and timeliness.

How does the awarded amount compare to historical spending on similar repairs for LPD-class vessels?

Direct comparison of the $251 million award for the USS GREEN BAY (LPD 20) FY25 DSRA to historical spending requires access to detailed contract data for similar repairs on other LPD-class ships (e.g., LPD 17, LPD 18, LPD 19, LPD 21, etc.). Naval ship repair costs can fluctuate significantly based on the specific scope of work, the age of the vessel, the complexity of required upgrades, and market conditions at the time of award. However, major drydocking and scheduled repair and alteration (DSRA) availabilities for large naval combatants and auxiliaries frequently run into the hundreds of millions of dollars. This award appears consistent with the scale of such major maintenance availabilities for a vessel of the LPD's size and complexity.

What are the primary risks associated with a firm-fixed-price contract for extensive ship repair?

The primary risk with a firm-fixed-price (FFP) contract for extensive ship repair is that the contractor, BAE Systems Maritime Solutions, assumes the financial risk if costs exceed the agreed-upon price. While this benefits the government by providing cost certainty, it can lead to contractor attempts to cut corners on quality or scope if unforeseen issues arise that significantly increase labor or material costs. Conversely, if the contractor significantly underbids or encounters fewer issues than anticipated, they stand to make a larger profit. For the government, the risk lies in potential disputes over scope changes, contractor performance issues, or the possibility that the contractor may not have adequately factored in all potential complexities of a major overhaul, potentially impacting schedule or quality if they are unwilling to absorb unexpected costs.

What is the expected impact of this contract on the operational readiness of the U.S. Navy's amphibious fleet?

This contract is crucial for maintaining the operational readiness of the U.S. Navy's amphibious transport dock (LPD) fleet. The USS GREEN BAY (LPD 20) is a key platform for projecting power ashore, supporting Marine Expeditionary Units, and conducting humanitarian assistance/disaster relief operations. By undergoing its FY25 Drydocking and Scheduled Repair and Alteration (DSRA), the ship will receive necessary maintenance, inspections, and potential upgrades to ensure its systems are functioning correctly and its hull integrity is sound. This prevents degradation of capability and extends the vessel's service life, ensuring the Navy has the required assets available for its global mission requirements.

How does the competition level (full and open) influence the value received by the government for this contract?

Awarding this contract under 'full and open competition' is intended to maximize the value received by the government. This process allows any responsible source to submit a bid, fostering a competitive environment where multiple companies vie for the work. Competition typically drives down prices as bidders seek to offer the most attractive terms to win the contract. It also encourages efficiency and innovation, as contractors aim to perform the work effectively and profitably. The government benefits from potentially lower costs compared to sole-source or limited competition scenarios, and gains assurance that the selected contractor was chosen based on a comprehensive evaluation of technical capability, past performance, and price.

What are the potential implications of the contract's duration (739 days) on naval deployment schedules?

A contract duration of 739 days (approximately two years) for a Drydocking and Scheduled Repair and Alteration (DSRA) signifies a major availability period for the USS GREEN BAY (LPD 20). This extended period means the ship will be unavailable for operational deployments for a significant duration. Naval planners must account for this extended downtime when scheduling fleet operations, ensuring that other LPD-class vessels or alternative platforms can cover the Green Bay's anticipated missions during its overhaul. Effective project management by both the Navy and BAE Systems is critical to minimize any potential slippage beyond the planned completion date, as delays could impact broader fleet deployment and readiness planning.

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: N0002424R4411

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 2205 BELT ST, SAN DIEGO, CA, 92113

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: $251,344,648

Exercised Options: $250,944,541

Current Obligation: $250,944,541

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $26,487,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline