Navy awards $18.9M contract for USNS Patuxent overhaul, highlighting shipbuilding and repair sector activity

Contract Overview

Contract Amount: $18,893,485 ($18.9M)

Contractor: Boston Ship Repair LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-14

End Date: 2023-11-03

Contract Duration: 112 days

Daily Burn Rate: $168.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N104A1/PM1/WARD CHRISTOPHER FY23 USNS PATUXENT REGULAR OVERHAUL DRY DOCKING

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to BOSTON SHIP REPAIR LLC for work described as: N104A1/PM1/WARD CHRISTOPHER FY23 USNS PATUXENT REGULAR OVERHAUL DRY DOCKING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure aims to control costs for the government. 3. The contract duration of 112 days indicates a significant scope of work. 4. The awardee, Boston Ship Repair LLC, operates within the shipbuilding and repair industry. 5. The contract falls under the broader category of shipbuilding and repairing services. 6. The geographic location of the awardee in Massachusetts may influence local economic impact.

Value Assessment

Rating: good

The contract value of $18.9 million for a regular overhaul and dry docking of a USNS vessel appears reasonable given the scope of work. Benchmarking against similar naval vessel overhauls is challenging without more specific data on the vessel class and required services. However, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the costs involved, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was broad, specific reasons for excluding certain sources may have existed. The presence of 3 bids indicates a moderate level of competition. A higher number of bidders would typically lead to more aggressive pricing and better value for the government.

Taxpayer Impact: The competitive bidding process, even with a limited number of bidders, helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The U.S. Navy benefits from the maintenance and operational readiness of the USNS Patuxent. The contract supports the delivery of essential maritime services for national defense. The primary service delivered is the overhaul and dry docking of a naval vessel. The geographic impact is concentrated in Massachusetts, where the contractor is located, potentially creating or sustaining local jobs in the maritime sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during dry docking, despite the fixed-price nature.
Dependence on a single contractor for a critical vessel maintenance task could pose a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through a competitive process, indicating potential for good value.
Contract duration is clearly defined, allowing for project management and oversight.

Sector Analysis

The shipbuilding and repairing industry (NAICS 336611) is a critical sector for national defense and maritime commerce. This contract represents a typical expenditure for maintaining naval assets. The market size for ship repair is substantial, driven by both commercial and government fleets. This specific contract fits within the broader category of defense-related industrial services, where specialized skills and facilities are required.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of handling the complex requirements of a vessel overhaul. The impact on the small business ecosystem is likely minimal unless the prime contractor engages in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of contract awards, though specific performance details may be less accessible.

Related Government Programs

Naval Vessel Maintenance Contracts
Ship Repair and Dry Docking Services
Department of Defense Procurement
Maritime Industry Support

Risk Flags

Potential for unforeseen issues during dry docking impacting schedule and cost.
Reliance on a single contractor for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to BOSTON SHIP REPAIR LLC. N104A1/PM1/WARD CHRISTOPHER FY23 USNS PATUXENT REGULAR OVERHAUL DRY DOCKING

Who is the contractor on this award?

The obligated recipient is BOSTON SHIP REPAIR 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 $18.9 million.

What is the period of performance?

Start: 2023-07-14. End: 2023-11-03.

What is the historical spending pattern for USNS Patuxent overhauls?

Analyzing historical spending for USNS Patuxent overhauls requires access to historical contract data. Without specific prior contract awards for this vessel, a direct comparison is not possible. However, the current award of $18.9 million for a regular overhaul and dry docking provides a benchmark for future maintenance cycles. Generally, vessel overhauls can vary significantly in cost based on the extent of work required, the age of the vessel, and market conditions at the time of award. Factors such as major system replacements, hull integrity issues, or regulatory compliance upgrades can substantially increase costs beyond routine maintenance.

How does Boston Ship Repair LLC's track record compare for similar naval contracts?

Boston Ship Repair LLC's track record for similar naval contracts would need to be assessed through a review of their past performance on government contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. A positive track record with timely delivery, adherence to specifications, and cost control on comparable naval vessel maintenance would indicate a lower risk for this current contract. Conversely, a history of performance issues or cost overruns on similar projects would raise concerns about their capability to execute this $18.9 million award effectively.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key performance indicators (KPIs) for this contract would likely focus on the successful completion of the overhaul and dry docking within the specified timeframe (112 days) and adherence to the technical specifications outlined in the contract. Performance will be measured against the contract's requirements, including the quality of repairs, the integrity of the vessel post-overhaul, and the timely return to service. The Navy's quality assurance representatives will likely conduct inspections throughout the process and upon completion. Failure to meet these KPIs could result in penalties or withholding of payment, as stipulated in the firm-fixed-price agreement.

What is the potential risk associated with the 'exclusion of sources' in the competition type?

The 'full and open competition after exclusion of sources' designation suggests that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The reasons for exclusion are not detailed but could stem from factors such as security clearances, specialized capabilities, past performance issues, or specific regulatory requirements that only a subset of potential contractors could meet. While this can ensure that only qualified entities bid, it also carries a risk of limiting competition more than necessary, potentially leading to higher prices or reduced innovation compared to a truly open competition. The government must have a justifiable rationale for excluding sources to ensure fair and effective procurement.

How does the $18.9 million cost compare to the overall Navy shipbuilding and repair budget?

The $18.9 million cost for the USNS Patuxent overhaul represents a relatively small fraction of the overall U.S. Navy shipbuilding and repair budget, which typically runs into billions of dollars annually. This specific contract is for a single vessel's maintenance, a recurring but discrete expenditure. While significant for this particular project, it is not indicative of the total investment in naval fleet readiness. The Navy manages a vast fleet, and such overhaul contracts are part of a larger, ongoing maintenance and modernization strategy that encompasses new construction, major upgrades, and routine upkeep across hundreds of vessels.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220523R4015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 32A DRYDOCK AVE, BOSTON, MA, 02210

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,790,017

Exercised Options: $18,893,485

Current Obligation: $18,893,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline