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

State: California Government Spending

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: ManufacturingShip and Boat BuildingShip Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTNON-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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