DoD Awards BAE Systems $61.3M for USS Stockdale (DDG 106) FY26 DSRA
Contract Overview
Contract Amount: $61,307,019 ($61.3M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-04
End Date: 2027-03-05
Contract Duration: 670 days
Daily Burn Rate: $91.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS STOCKDALE (DDG 106) FY26 DSRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $61.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS STOCKDALE (DDG 106) FY26 DSRA Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship repair. 2. Full and open competition was utilized for this procurement. 3. The contract is a firm fixed price definitive contract. 4. Projected completion is March 2027, with a duration of 670 days.
Value Assessment
Rating: good
The award amount of $61.3M appears reasonable for a DDG class destroyer repair and modernization. Benchmarking against similar complex naval vessel maintenance contracts suggests this falls within expected cost ranges.
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 by allowing all eligible contractors to bid.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential naval maintenance.
Public Impact
Ensures readiness of a key naval asset, the USS Stockdale. Supports critical shipbuilding and repair infrastructure and workforce. Maintains the operational capability of the U.S. Navy fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repairs are needed.
- Dependence on a single contractor for a critical asset.
Positive Signals
- Firm fixed price contract limits cost escalation.
- Full and open competition promotes competitive pricing.
- Long-term contract duration allows for planned maintenance.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, specifically for naval vessels. Spending in this sector is crucial for maintaining national defense capabilities and often involves complex, high-value contracts.
Small Business Impact
While BAE Systems is a large prime contractor, the nature of this specialized repair work may involve subcontracting opportunities for smaller businesses in the maritime supply chain.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The definitive contract structure with a fixed price and defined period of performance allows for clear accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep
- Dependency on sole source for specific expertise
- Supply chain disruptions
- Unforeseen technical challenges
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 $61.3 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS STOCKDALE (DDG 106) 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 $61.3 million.
What is the period of performance?
Start: 2025-05-04. End: 2027-03-05.
What is the historical performance of BAE Systems Maritime Solutions on similar naval repair contracts?
Historical performance data for BAE Systems Maritime Solutions on comparable naval repair contracts would be crucial for a comprehensive value assessment. Reviewing past project timelines, budget adherence, and quality of work would provide insight into their reliability and efficiency in executing complex maintenance and modernization tasks for the U.S. Navy.
Are there any identified risks associated with the specific repair and modernization tasks outlined for the USS Stockdale?
Specific risks would depend on the detailed scope of work for the FY26 DSRA. Potential risks could include unforeseen structural issues discovered during the overhaul, availability of specialized parts, or integration challenges with new systems. A thorough technical assessment and contingency planning by the Navy are essential to mitigate these potential issues.
How does the awarded price compare to the government's independent cost estimate for this service?
Comparing the awarded price of $61.3M to the government's independent cost estimate (ICE) is vital for assessing cost-effectiveness. If the awarded price is significantly below the ICE, it suggests strong competition and good negotiation. Conversely, if it's close to or above the ICE, further scrutiny of the pricing and competition might be warranted.
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: 3
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: $64,052,075
Exercised Options: $61,307,019
Current Obligation: $61,307,019
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-04
Current End Date: 2027-03-05
Potential End Date: 2027-03-05 00:00:00
Last Modified: 2025-12-18
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