DoD's $53.5M BAE Systems Contract for USNS SUPPLY MARUP Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $53,534,042 ($53.5M)
Contractor: BAE Systems Southeast Shipyards Alabama LLC
Awarding Agency: Department of Defense
Start Date: 2013-12-20
End Date: 2014-10-12
Contract Duration: 296 days
Daily Burn Rate: $180.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USNS SUPPLY MARUP
Place of Performance
Location: MOBILE, MOBILE County, ALABAMA, 36652
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $53.5 million to BAE SYSTEMS SOUTHEAST SHIPYARDS ALABAMA LLC for work described as: USNS SUPPLY MARUP Key points: 1. Contract value of $53.5M for ship maintenance. 2. BAE Systems Southeast Shipyards Alabama LLC secured the award. 3. Competition was full and open, suggesting market-driven pricing. 4. The sector is Ship Building and Repairing, a critical defense area.
Value Assessment
Rating: good
The contract value of $53.5M for ship maintenance appears reasonable given the nature of the work. Benchmarking against similar large-scale ship repair contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive nature of this contract likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for essential defense services.
Public Impact
Ensures readiness of the USNS SUPPLY, a critical asset for naval operations. Supports jobs in the shipbuilding and repair sector in Alabama. Demonstrates the Navy's commitment to maintaining its fleet through competitive contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 296 days is relatively short for major ship repair.
- Lack of specific performance metrics in the provided data.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can control costs.
- Located in Alabama, a state with significant shipbuilding infrastructure.
Sector Analysis
The Ship Building and Repairing sector is vital for national defense, involving complex and costly maintenance for naval vessels. Spending in this sector can fluctuate based on fleet needs and modernization efforts.
Small Business Impact
While BAE Systems is a large prime contractor, the contract details do not specify any subcontracting goals for small businesses. Further investigation into subcontracting plans would be needed to assess small business participation.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for its contracts. The use of a definitive contract suggests a clear scope of work.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if not tightly managed.
- Dependence on a single large contractor for critical maintenance.
- Limited visibility into small business subcontracting.
- Contract duration may be insufficient for extensive repairs.
Tags
ship-building-and-repairing, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.5 million to BAE SYSTEMS SOUTHEAST SHIPYARDS ALABAMA LLC. USNS SUPPLY MARUP
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SOUTHEAST SHIPYARDS ALABAMA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $53.5 million.
What is the period of performance?
Start: 2013-12-20. End: 2014-10-12.
What specific maintenance and repair tasks were included in this $53.5M contract to ensure the USNS SUPPLY's operational readiness?
The contract likely encompassed a range of maintenance and repair activities essential for the USNS SUPPLY's operational readiness. This could include hull maintenance, propulsion system servicing, equipment upgrades, and safety system checks. The firm fixed-price nature suggests a well-defined scope to prevent cost overruns.
What were the key evaluation criteria used in the full and open competition to select BAE Systems for this significant contract?
Key evaluation criteria in a full and open competition typically include technical capability, past performance, price, and adherence to schedule. For a ship repair contract, the government would assess the shipyard's expertise in handling the specific vessel class, its track record on similar projects, the proposed cost-effectiveness, and its ability to complete the work within the specified timeframe.
How does the $53.5M contract value compare to historical spending on similar maintenance for the USNS SUPPLY or comparable vessels?
Benchmarking this $53.5M contract against historical spending for the USNS SUPPLY or similar logistical support vessels is crucial for assessing value. Factors like the scope of work, age of the vessel, and market conditions at the time of award would influence this comparison. Without specific historical data or a detailed scope of work, a precise comparison is difficult.
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: N0003313R7508
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: MN GATE DUNLAP DR, MOBILE, AL, 36602
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,366,682
Exercised Options: $53,534,042
Current Obligation: $53,534,042
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-12-20
Current End Date: 2014-10-12
Potential End Date: 2014-10-12 00:00:00
Last Modified: 2016-12-22
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)