Dod Awards $25.7M for USS the Sullivans (DDG 68) Ship Repair to BAE Systems

Contract Overview

Contract Amount: $25,701,907 ($25.7M)

Contractor: BAE Systems Jacksonville Ship Repair LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-28

End Date: 2019-10-25

Contract Duration: 301 days

Daily Burn Rate: $85.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS THE SULLIVANS (DDG 68) SSP 502-19 SRA

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to BAE SYSTEMS JACKSONVILLE SHIP REPAIR LLC for work described as: USS THE SULLIVANS (DDG 68) SSP 502-19 SRA Key points: 1. Contract awarded to BAE Systems for ship repair services. 2. Full and open competition was utilized for this award. 3. The contract value is $25.7 million. 4. The duration of the contract was 301 days.

Value Assessment

Rating: good

The contract value of $25.7 million for ship repair appears reasonable given the scope of work for a DDG-class destroyer. Benchmarking against similar repair contracts for naval vessels would provide a more precise assessment.

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 for the government.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the services rendered.

Public Impact

Ensures the operational readiness of a key naval asset, the USS THE SULLIVANS (DDG 68). Supports the shipbuilding and repair industry, contributing to jobs and economic activity. Maintains the U.S. Navy's fleet capabilities through essential maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Positive Signals

Full and open competition utilized
Clear contract type (Firm Fixed Price)
Defined period of performance

Sector Analysis

This contract falls within the Defense sector, specifically ship building and repairing. Spending in this area is critical for maintaining naval fleet readiness and is subject to significant competition.

Small Business Impact

The data indicates that the awardee is BAE SYSTEMS JACKSONVILLE SHIP REPAIR LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply.

Related Government Programs

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

Risk Flags

Lack of detailed scope of work
Potential for cost growth if unforeseen issues arise beyond the defined SRA
Dependence on a single contractor for specific repair capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to BAE SYSTEMS JACKSONVILLE SHIP REPAIR LLC. USS THE SULLIVANS (DDG 68) SSP 502-19 SRA

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS JACKSONVILLE 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 $25.7 million.

What is the period of performance?

Start: 2018-12-28. End: 2019-10-25.

What specific repair services were included in this $25.7 million contract?

The provided data does not detail the specific repair services. However, for a DDG-class destroyer, typical services could include hull maintenance, propulsion system repairs, weapons system servicing, and interior refurbishment. A comprehensive SRA (Ship Repair Agreement) would outline these specifics.

What is the benchmark cost for similar ship repair contracts for DDG-class destroyers?

Benchmarking similar contracts is complex due to variations in scope, age of the vessel, and specific repair needs. However, major overhauls for DDG-class destroyers can range from tens to hundreds of millions of dollars. This $25.7 million award appears to be for a specific, defined period of repair rather than a full overhaul.

How does the firm-fixed-price contract type mitigate risk for the government?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed. This contract type shifts the risk of cost overruns from the government to the contractor, providing cost certainty and predictability for the DoD. It incentivizes the contractor to manage costs efficiently.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N4002716R0028

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 8500 HECKSCHER DR, JACKSONVILLE, FL, 32226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,647,698

Exercised Options: $25,701,907

Current Obligation: $25,701,907

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $12,233,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4002717D1007

IDV Type: IDC

Timeline