Navy Awards BAE Systems $37.4M for USS Kansas City (LCS 22) FY26 DSRA
Contract Overview
Contract Amount: $37,434,088 ($37.4M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-18
End Date: 2027-06-04
Contract Duration: 747 days
Daily Burn Rate: $50.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS KANSAS CITY (LCS 22) FY26 DSRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $37.4 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS KANSAS CITY (LCS 22) FY26 DSRA Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship maintenance. 2. Full and open competition was utilized for this procurement. 3. The contract value is $37.4 million, with a duration of 747 days. 4. This falls under the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract value of $37.4 million for a DDG DSRA appears reasonable given the scope and duration. Benchmarking against similar complex naval vessel maintenance 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, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition suggests taxpayers are likely receiving fair value for the services rendered.
Public Impact
Ensures operational readiness of a key naval asset. Supports critical shipbuilding and repair infrastructure. Maintains the lifespan and capability of the USS Kansas City.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex ship repair.
- Schedule delays impacting operational availability.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition drives value.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repair. Spending in this area is critical for maintaining naval fleet readiness and technological superiority.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard oversight mechanisms for defense contracts should apply, including performance monitoring and financial audits.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule slippage.
- Unforeseen technical challenges during repair.
- Dependency on specific skilled labor availability.
- Supply chain disruptions for specialized parts.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS KANSAS CITY (LCS 22) FY26 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 $37.4 million.
What is the period of performance?
Start: 2025-05-18. End: 2027-06-04.
What is the historical performance of BAE Systems Maritime Solutions on similar naval maintenance contracts?
Historical performance data for BAE Systems Maritime Solutions on similar naval maintenance contracts is crucial for assessing reliability and potential risks. Reviewing past project completion times, adherence to budget, and quality of work would provide insights into their capability to execute this contract successfully and efficiently, informing future procurement decisions and risk assessments.
Are there any identified risks associated with the specific maintenance requirements for the USS Kansas City (LCS 22)?
Specific risks associated with the USS Kansas City's maintenance requirements could include unforeseen structural issues, obsolescence of components requiring specialized sourcing, or the need for unique technical expertise. A thorough technical assessment and risk mitigation plan by the Navy and BAE Systems are essential to address these potential challenges proactively and prevent schedule delays or cost overruns.
How does the firm-fixed-price contract structure impact the Navy's ability to manage cost overruns during this DSRA?
A firm-fixed-price contract structure places the primary responsibility for cost control on the contractor, BAE Systems. While this offers significant cost certainty to the Navy, it also means that any cost overruns incurred by the contractor due to unforeseen issues or inefficiencies would typically be absorbed by BAE Systems, potentially incentivizing them to manage the project tightly.
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: N0002425R4408
Offers Received: 4
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: $45,884,248
Exercised Options: $37,434,088
Current Obligation: $37,434,088
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-18
Current End Date: 2027-06-04
Potential End Date: 2027-06-04 00:00:00
Last Modified: 2025-12-18
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