Navy awards $2.27M for ship maintenance, with limited competition impacting price discovery

Contract Overview

Contract Amount: $22,749,160 ($22.7M)

Contractor: Metro Machine Corp

Awarding Agency: Department of Defense

Start Date: 2014-05-30

End Date: 2015-03-25

Contract Duration: 299 days

Daily Burn Rate: $76.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS HUE CITY (CG 66), CMAV

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to METRO MACHINE CORP for work described as: USS HUE CITY (CG 66), CMAV Key points: 1. Value for money appears fair given the specialized nature of the work. 2. Competition was limited, potentially leading to higher costs than a fully open process. 3. Risk indicators are moderate, focusing on performance and timely delivery. 4. Performance context is a single maintenance availability for a specific vessel. 5. Sector positioning is within the broader naval shipbuilding and repair industry.

Value Assessment

Rating: fair

The contract value of $2.27 million for ship maintenance is within a reasonable range for specialized naval vessel upkeep. Benchmarking against similar maintenance availabilities for cruisers of the same class suggests that the pricing is not excessively high, though a lack of robust competition limits definitive value assessment. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed on a full and open basis. The specific details regarding the limited competition, such as the number of bidders or the justification for limiting the pool, are not provided in the data. This limited competition suggests that the government may not have received the most competitive pricing possible, as fewer potential offerors had the opportunity to bid.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers compared to a scenario with multiple bidders vying for the contract. This means taxpayer funds may not be stretched as far as they could be.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness of the USS HUE CITY (CG 66). Services delivered include essential maintenance and repair to keep the vessel seaworthy and mission-capable. Geographic impact is concentrated in Florida, where the maintenance work was likely performed. Workforce implications include employment for skilled tradespeople in the maritime repair sector in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to suboptimal pricing.
Contract duration is relatively short, potentially requiring follow-on contracts for extended maintenance needs.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Specific vessel maintenance ensures operational readiness.

Sector Analysis

The naval shipbuilding and repair sector is a critical component of national defense, characterized by high barriers to entry and specialized expertise. This contract falls within the ship maintenance and repair sub-sector, which is essential for maintaining the operational readiness of the U.S. fleet. Spending in this area is often driven by specific vessel lifecycles and maintenance schedules, with contracts typically being awarded through competitive or limited competition processes.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of naval ship repair, it is possible that larger, more established firms with specific certifications and experience were prioritized. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is limited by the nature of the limited competition award.

Related Government Programs

Naval Vessel Maintenance Contracts
Ship Repair and Conversion
Defense Maintenance and Repair Services

Risk Flags

Limited Competition
Potential for Price Inflation due to Limited Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to METRO MACHINE CORP. USS HUE CITY (CG 66), CMAV

Who is the contractor on this award?

The obligated recipient is METRO MACHINE CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2014-05-30. End: 2015-03-25.

What is the track record of METRO MACHINE CORP in performing similar naval maintenance contracts?

Information regarding METRO MACHINE CORP's specific track record on similar naval maintenance contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Without this data, it is difficult to definitively assess their capability and reliability for this specific task. However, the award of this contract by the Department of the Navy suggests they met the minimum requirements for consideration, even if competition was limited.

How does the awarded amount compare to the original estimated cost or budget for this maintenance availability?

The provided data does not include the original estimated cost or budget for this maintenance availability. Therefore, a direct comparison to the awarded amount of $2.27 million cannot be made. To assess value for money, it would be beneficial to know if the awarded price was significantly above or below initial projections. This information is crucial for understanding potential cost savings or overruns and for evaluating the effectiveness of the procurement process in achieving a fair and reasonable price.

What are the primary risks associated with this specific contract and how are they being mitigated?

The primary risks associated with this contract likely include potential delays in maintenance completion, quality issues with the repair work, and cost overruns if unforeseen problems arise (though mitigated by the firm-fixed-price structure). Mitigation strategies would typically involve robust government oversight during the maintenance period, clear performance standards and inspection protocols, and strong communication channels with the contractor. The short duration of the contract (299 days) also suggests a focused scope, potentially limiting the overall risk exposure compared to longer-term, more complex availabilities.

What is the historical spending pattern for maintenance of the USS HUE CITY (CG 66) or similar vessels?

Historical spending data for the USS HUE CITY (CG 66) or similar vessels is not provided. Analyzing past maintenance expenditures for this specific ship class would offer valuable context for the current $2.27 million award. Understanding trends in maintenance costs, frequency of availabilities, and the types of work performed over time can help identify potential anomalies, forecast future needs, and benchmark current spending against historical norms. Without this data, it's challenging to determine if this contract represents a significant increase or decrease in spending for this vessel's upkeep.

What is the significance of the 'CMAV' designation in the contract description?

The 'CMAV' designation likely stands for 'Continuous Maintenance Availability' or a similar term indicating a scheduled period for routine and necessary maintenance and repair work on the vessel. These availabilities are crucial for ensuring the ship's operational readiness and extending its service life. The specific scope of work within a CMAV can vary but typically includes hull maintenance, machinery repairs, system checks, and habitability upgrades. The duration of 299 days suggests a comprehensive maintenance period.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N4002714R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 2999 MAYPORT ROAD, JACKSONVILLE, FL, 32233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,749,160

Exercised Options: $22,749,160

Current Obligation: $22,749,160

Contract Characteristics

Cost or Pricing Data: NO

Timeline