DoD Awards BAE Systems $123M for USS Forrest Sherman (DDG 98) FY26 Depot Maintenance
Contract Overview
Contract Amount: $123,241,411 ($123.2M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2025-11-10
End Date: 2027-08-09
Contract Duration: 637 days
Daily Burn Rate: $193.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS FORREST SHERMAN (DDG 98) FY26 DMP
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $123.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS FORREST SHERMAN (DDG 98) FY26 DMP Key points: 1. Contract awarded to BAE Systems Maritime Solutions for depot maintenance on USS Forrest Sherman. 2. The contract value is $123.24 million, with a performance period extending into August 2027. 3. This award falls under the Ship Building and Repairing sector, specifically for naval vessels. 4. The contract type is Firm Fixed Price, indicating a defined cost for the services.
Value Assessment
Rating: good
The contract value of $123.24 million for a 637-day maintenance period appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar depot maintenance contracts for DDG-class destroyers 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 likely resulted in a fair market price. The use of a definitive contract indicates a clear scope of work and pricing structure.
Taxpayer Impact: Taxpayer funds are being utilized for essential maintenance of a naval asset, ensuring its operational readiness and longevity.
Public Impact
Ensures the operational readiness of a key naval asset, the USS Forrest Sherman. Supports the shipbuilding and repair industry, contributing to jobs and economic activity in the sector. Maintains the U.S. Navy's fleet capabilities, crucial for national security and defense. The firm fixed price contract provides cost certainty for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm fixed price.
- Dependence on a single contractor for critical maintenance could pose risks if performance issues emerge.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract provides budget predictability.
- Maintenance ensures the longevity and operational capability of a significant naval asset.
Sector Analysis
This contract falls within the Ship Building and Repairing sector (NAICS 336611), which is a critical component of the defense industrial base. Spending in this sector is directly tied to naval fleet readiness and modernization efforts.
Small Business Impact
While BAE Systems is a large defense contractor, the contract details do not specify any subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for major defense contracts, including performance monitoring and quality assurance, are expected to be in place.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep or unforeseen issues impacting fixed price.
- Dependence on a single large contractor.
- Limited visibility into small business subcontracting.
- Long performance period increases risk exposure.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $123.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS FORREST SHERMAN (DDG 98) FY26 DMP
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $123.2 million.
What is the period of performance?
Start: 2025-11-10. End: 2027-08-09.
What is the historical cost performance of BAE Systems Maritime Solutions on similar naval depot maintenance contracts?
Historical cost performance data for BAE Systems Maritime Solutions on comparable naval depot maintenance contracts is crucial for validating the reasonableness of the $123.24 million award. Analyzing past projects' budget adherence, change order frequency, and final costs against initial estimates will reveal trends in their cost management and efficiency. This information helps assess the likelihood of the current contract remaining within its fixed price.
What are the specific risks associated with the 637-day maintenance period for the USS Forrest Sherman?
The 637-day maintenance period for the USS Forrest Sherman presents several risks. These include the potential for unforeseen structural or system failures discovered during overhaul, which could necessitate scope changes and cost increases despite the firm fixed price. Delays in parts procurement or specialized labor availability could also extend the timeline, impacting operational readiness. Furthermore, the aging nature of naval vessels can introduce unique maintenance challenges.
How effectively does this contract contribute to the overall readiness and modernization goals of the U.S. Navy's fleet?
This contract directly contributes to the readiness goals by ensuring the USS Forrest Sherman remains operational and capable. Regular depot maintenance is essential for extending the service life of these complex vessels and preventing costly failures. While focused on maintenance rather than modernization, a well-maintained ship is a prerequisite for any future upgrades, thus indirectly supporting long-term fleet modernization objectives by preserving the asset.
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: N0002425R4403
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523
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: $139,109,489
Exercised Options: $123,241,411
Current Obligation: $123,241,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-11-10
Current End Date: 2027-08-09
Potential End Date: 2027-08-09 00:00:00
Last Modified: 2025-12-08
More Contracts from BAE Systems Maritime Solutions Norfolk Inc.
- DDG Docker Norfolk Msmo — $1.0B (Department of Defense)
- Execution Planning LHD 3 FY11 PMA — $848.6M (Department of Defense)
- Execution Planning CG 61 FY12 SRA — $625.0M (Department of Defense)
- Federal Contract — $584.3M (Department of Defense)
- 200608!445660!1700!n00024!naval SEA Systems Command !N0002406C4415 !A!N! !N! ! !20060518!20110817!003175072!824825459!217304393!n!bae Systems Norfolk Ship Repai!750 W Berkley AVE !norfolk !va!23523!57000!710!51!norfolk !norfolk (city) !virginia !+000027947320!n!n!000030611843!1902!cruisers !A3 !ships !000 !NOT Discernable !561990!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!u!r!2!003!b! !A!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y!1700!N00024!0001! ! — $446.4M (Department of Defense)
View all BAE Systems Maritime Solutions Norfolk Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)