DoD Awards BAE Systems $204M for USS Iwo Jima (LHD 7) FY26 Ship Repair
Contract Overview
Contract Amount: $204,160,189 ($204.2M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2026-08-24
End Date: 2028-02-25
Contract Duration: 550 days
Daily Burn Rate: $371.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS IWO JIMA (LHD 7) FY26 SRA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $204.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS IWO JIMA (LHD 7) FY26 SRA Key points: 1. Significant contract value for a major naval vessel. 2. BAE Systems is a key player in maritime solutions. 3. Potential for cost overruns or schedule delays in complex ship repair. 4. Spending falls within the broader Defense sector, specifically shipbuilding and repair.
Value Assessment
Rating: good
The contract value of $204M for a 550-day duration appears reasonable for a complex naval vessel like the USS Iwo Jima. Benchmarking against similar large-scale ship repair contracts would provide further context.
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 is expected to drive price discovery and potentially achieve a fair market price.
Taxpayer Impact: Taxpayer funds are being used for essential maintenance of a naval asset, ensuring its operational readiness.
Public Impact
Ensures the operational readiness of a critical naval asset. Supports jobs within the shipbuilding and repair industry. Contributes to national defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep during extensive repairs.
- Reliance on a single contractor for a large portion of the work.
- Schedule slippage impacting fleet readiness.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Clear end date for the contract.
Sector Analysis
This contract falls under the shipbuilding and repair sector, a critical component of the defense industrial base. Spending benchmarks for similar large-scale naval vessel overhauls are typically in the hundreds of millions.
Small Business Impact
While the prime contractor is BAE Systems, the contract does not indicate specific set-asides for small businesses. Subcontracting opportunities may exist, but direct small business participation is not evident from this data.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard oversight mechanisms for large defense contracts should be in place to monitor performance, cost, and schedule.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Complexity of naval vessel repair.
- Potential for schedule delays.
- Reliance on a single large contractor.
- Scope creep risk.
- Availability of skilled labor for specialized repairs.
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 $204.2 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS IWO JIMA (LHD 7) FY26 SRA
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 $204.2 million.
What is the period of performance?
Start: 2026-08-24. End: 2028-02-25.
What is the historical performance of BAE Systems Maritime Solutions Norfolk Inc. on similar naval repair contracts?
Historical performance data for BAE Systems Maritime Solutions Norfolk Inc. on comparable naval repair contracts is crucial for assessing reliability and potential risks. Reviewing past project completion times, adherence to budget, and quality of work would provide valuable insights into their capabilities and potential challenges in executing the USS Iwo Jima (LHD 7) FY26 SRA effectively.
How will potential unforeseen issues discovered during the repair process be managed under the Firm Fixed Price contract?
Under a Firm Fixed Price contract, the contractor is generally responsible for unforeseen issues unless specific contract clauses allow for equitable adjustments. The Department of the Navy will need robust change order management processes to evaluate any proposed modifications to the scope or price, ensuring taxpayer funds are protected while necessary repairs are completed.
What are the key performance indicators (KPIs) being used to measure the success of this repair contract?
Key performance indicators for this contract likely include adherence to the schedule (550 days), completion of all specified repair tasks to Navy standards, and maintaining the structural and operational integrity of the USS Iwo Jima (LHD 7). Quality assurance inspections and final acceptance trials will be critical in verifying successful completion and overall effectiveness.
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: N0002425R4405
Offers Received: 3
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: $240,879,128
Exercised Options: $204,160,189
Current Obligation: $204,160,189
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-08-24
Current End Date: 2028-02-25
Potential End Date: 2028-02-25 00:00:00
Last Modified: 2026-01-08
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)