Navy's $82M FY25 USS Harpers Ferry Availability Contract Awarded to National Steel and Shipbuilding

Contract Overview

Contract Amount: $82,170,811 ($82.2M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2025-03-28

End Date: 2026-10-16

Contract Duration: 567 days

Daily Burn Rate: $144.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS HARPERS FERRY (LSD 49) FY25 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 $82.2 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: USS HARPERS FERRY (LSD 49) FY25 SELECTED RESTRICTED AVAILABILITY Key points: 1. Contract value of $82.17M for ship repair and maintenance. 2. Awarded to National Steel and Shipbuilding Company, a major defense contractor. 3. Potential risks include schedule delays and cost overruns common in complex ship repair. 4. Spending falls within the broader Defense sector, specifically ship maintenance.

Value Assessment

Rating: good

The contract value appears reasonable for a selected restricted availability of a naval vessel. Benchmarking against similar complex ship repair contracts would provide further validation.

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. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary naval maintenance.

Public Impact

Ensures operational readiness of a key naval asset. Supports jobs in the shipbuilding and repair industry. Impacts the Navy's ability to project power and maintain maritime security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep during availability.
Dependence on a single contractor for critical repairs.
Risk of unforeseen technical issues impacting schedule.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition likely yielded competitive pricing.
Clear definition of availability scope.

Sector Analysis

This contract falls under the Defense sector, specifically ship maintenance and repair. Spending benchmarks for similar availabilities vary widely based on ship class and scope of work.

Small Business Impact

While the prime contractor is a large entity, the availability may create subcontracting opportunities for small businesses in specialized repair or supply areas.

Oversight & Accountability

The Department of the Navy oversees this contract. Robust oversight is crucial to manage schedule, cost, and quality throughout the availability period.

Related Government Programs

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

Risk Flags

Schedule slippage risk
Cost overrun potential
Technical complexity of repairs
Supply chain disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.2 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. USS HARPERS FERRY (LSD 49) FY25 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 $82.2 million.

What is the period of performance?

Start: 2025-03-28. End: 2026-10-16.

What is the historical performance of National Steel and Shipbuilding Company on similar naval availability contracts?

Assessing the contractor's past performance on comparable projects is crucial. Reviewing metrics like on-time completion, budget adherence, and quality of work for previous availabilities will indicate their reliability and capability to execute this contract successfully and efficiently.

How does the estimated cost compare to industry benchmarks for similar ship availabilities?

A detailed cost comparison against industry benchmarks for similar LSD-class ship availabilities is essential. This analysis should consider the scope of work, duration, and complexity to determine if the $82.17M award represents fair and reasonable pricing for the services rendered.

What mechanisms are in place to ensure the availability is completed on schedule and within budget?

The contract includes a firm fixed price and a defined period of performance. Effective oversight, regular progress reviews, and clear communication channels between the Navy and the contractor are critical to proactively identify and mitigate potential risks that could lead to delays or cost overruns.

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: N0002425R4422

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: $84,614,395

Exercised Options: $82,170,811

Current Obligation: $82,170,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline