DoD's $173M USS Somerset DSRA Contract Awarded to BAE Systems
Contract Overview
Contract Amount: $173,331,681 ($173.3M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-12
End Date: 2027-01-20
Contract Duration: 587 days
Daily Burn Rate: $295.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS SOMERSET (LPD 25) FY25 DSRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $173.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS SOMERSET (LPD 25) FY25 DSRA Key points: 1. The Department of the Navy awarded a $173.3M contract for the USS Somerset (LPD 25) FY25 Depot Source Maintenance and Repair (DSRA). 2. BAE Systems Maritime Solutions San Diego Inc. is the sole awardee. 3. The contract is a Firm Fixed Price type, indicating predictable costs for the government. 4. This award falls under the Ship Building and Repairing sector, crucial for naval readiness.
Value Assessment
Rating: good
The contract value of $173.3M for a DSRA on an LPD-class ship appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar depot-level repairs for large amphibious warships would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The definitive contract award mechanism is standard for such services.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, ensuring taxpayer funds are used efficiently for essential naval maintenance.
Public Impact
Ensures the operational readiness of the USS Somerset (LPD 25), a key asset for naval operations. Supports jobs within the shipbuilding and repair industry, particularly in California. Maintains the structural integrity and combat systems of a critical amphibious transport dock.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repair needs arise beyond the initial scope.
- Dependence on a single contractor for a critical maintenance period.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded through full and open competition.
- Supports a vital naval asset.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is a significant area of defense spending. Benchmarks for similar depot-level maintenance on amphibious assault ships are typically in the tens to hundreds of millions of dollars, depending on the scope and age of the vessel.
Small Business Impact
While BAE Systems is a large prime contractor, the subcontracting opportunities for small businesses within this large repair and maintenance contract are not specified in the provided data. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract to ensure timely completion and adherence to specifications. The definitive contract structure allows for clear deliverables and performance metrics.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Reliance on a single contractor for a critical maintenance period.
- Long duration of the contract (over 1.5 years).
- Complexity of modern naval vessel repair.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $173.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS SOMERSET (LPD 25) 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 $173.3 million.
What is the period of performance?
Start: 2025-06-12. End: 2027-01-20.
What is the historical performance of BAE Systems Maritime Solutions in executing similar depot-level repair contracts for the Navy?
Historical performance data for BAE Systems Maritime Solutions on similar contracts would be crucial for assessing their capability to deliver this DSRA on time and within budget. Reviewing past contract awards, performance reviews, and any documented issues or successes would provide valuable insight into their reliability and efficiency in executing complex naval maintenance projects.
Are there any specific risks associated with the USS Somerset (LPD 25) that might lead to cost increases beyond the firm fixed price?
Potential risks include the discovery of unforeseen structural damage, obsolescence of critical systems requiring upgrades, or changes in operational requirements during the maintenance period. The firm fixed price contract aims to mitigate cost increases, but a robust contingency plan and clear change order process are essential to manage any unexpected issues that arise during the extensive repair work.
How does the awarded price compare to the estimated cost or budget for this specific DSRA, and what is the projected impact on naval readiness?
Without access to the government's cost estimate or budget for this DSRA, a direct price comparison is difficult. However, the full and open competition suggests the price is likely competitive. The timely completion of this DSRA is critical for maintaining the USS Somerset's operational readiness, ensuring its availability for deployment and national security missions.
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: N0002425R4415
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: $196,160,474
Exercised Options: $173,331,681
Current Obligation: $173,331,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-06-12
Current End Date: 2027-01-20
Potential End Date: 2027-01-20 00:00:00
Last Modified: 2026-01-09
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