Navy Awards $13.2M for LHA6 Propeller Shaft Repair to Colonna's Shipyard

Contract Overview

Contract Amount: $13,197,146 ($13.2M)

Contractor: Colonna's Shipyard Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-10

End Date: 2026-05-18

Contract Duration: 951 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LHA6 PROP SHAFT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to COLONNA'S SHIPYARD INC for work described as: LHA6 PROP SHAFT Key points: 1. Significant contract for specialized ship repair services. 2. Competition method indicates a potentially competitive market for this service. 3. Risk of schedule delays or cost overruns in complex repair projects. 4. Sector focus on shipbuilding and repair, critical for naval readiness.

Value Assessment

Rating: good

The award amount of $13.2 million for propeller shaft repair appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar contracts for large ship repairs would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and driving down costs.

Public Impact

Ensures operational readiness of a key naval asset. Supports jobs in the maritime repair industry. Contributes to the maintenance of national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for unforeseen technical challenges during repair.
  • Dependency on specialized labor and materials.
  • Risk of schedule slippage impacting fleet availability.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.
  • Experienced contractor likely selected.

Sector Analysis

This contract falls within the shipbuilding and repair sector, which is vital for maintaining the operational capabilities of the U.S. Navy's fleet. Spending in this area is often driven by defense needs and the lifecycle of naval vessels.

Small Business Impact

While the primary awardee is Colonna's Shipyard Inc., the contract's full and open competition nature may have allowed small businesses to participate as subcontractors, contributing to their revenue and experience in specialized repair work.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Robust oversight is crucial to ensure the repair work meets stringent quality standards and is completed within the specified timeline and budget.

Related Government Programs

  • Ship Building and Repairing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for schedule delays due to unforeseen technical issues.
  • Availability of specialized parts and skilled labor.
  • Complexity of repairs on modern naval vessels.
  • Risk of scope creep if initial assessment is incomplete.

Tags

ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to COLONNA'S SHIPYARD INC. LHA6 PROP SHAFT

Who is the contractor on this award?

The obligated recipient is COLONNA'S SHIPYARD 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 $13.2 million.

What is the period of performance?

Start: 2023-10-10. End: 2026-05-18.

What is the historical performance of Colonna's Shipyard Inc. on similar naval repair contracts?

Assessing the contractor's past performance is critical. Reviewing previous contracts for similar scope, complexity, and vessel types would reveal their track record regarding quality, timeliness, and budget adherence. This historical data informs the current risk assessment and provides confidence in their ability to execute this specific propeller shaft repair effectively.

Are there any specific technological advancements or unique challenges associated with repairing the LHA6 propeller shaft that could impact cost or schedule?

The LHA6 class of ships represents advanced naval technology. Specific challenges might include the availability of specialized parts, the need for unique diagnostic equipment, or the complexity of accessing the shaft within the hull. Understanding these potential technical hurdles is essential for accurate cost estimation and realistic schedule planning, mitigating risks of delays and budget overruns.

How does the firm fixed price structure mitigate potential cost overruns for this complex repair?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. For a complex repair like a propeller shaft, this structure provides the government with significant cost certainty, assuming the scope of work is well-defined. However, it necessitates thorough initial planning and clear specifications to avoid change orders that could escalate costs.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

Product/Service Code: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Colonna's Ship Yard, Incorporated

Address: 400 E INDIAN RIVER ROAD, NORFOLK, VA, 23523

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,197,146

Exercised Options: $13,197,146

Current Obligation: $13,197,146

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010423DC001

IDV Type: IDC

Timeline

Start Date: 2023-10-10

Current End Date: 2026-05-18

Potential End Date: 2026-05-18 00:00:00

Last Modified: 2025-10-28

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