Navy Awards $3.6M for USS Indianapolis Ship Maintenance, Completing Full and Open Competition

Contract Overview

Contract Amount: $3,615,210 ($3.6M)

Contractor: Tecnico Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-05

End Date: 2026-04-03

Contract Duration: 88 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BASE WORK PACKAGE USS INDIANAPOLIS (LCS 17) SERM-005-26 (CMAV)

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to TECNICO CORPORATION for work described as: BASE WORK PACKAGE USS INDIANAPOLIS (LCS 17) SERM-005-26 (CMAV) Key points: 1. Significant contract for ship maintenance on USS Indianapolis (LCS 17). 2. Awarded under full and open competition, suggesting market responsiveness. 3. Potential risk associated with firm-fixed-price contracts in complex repair scenarios. 4. Sector is Ship Building and Repairing, a critical defense industry.

Value Assessment

Rating: good

The contract value of $3.6M appears reasonable for a ship maintenance delivery order. Benchmarking against similar CMAV contracts for LCS-class vessels would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive bidding process is expected to yield a cost-effective outcome for taxpayers on this ship maintenance task.

Public Impact

Ensures operational readiness of a key naval asset, the USS Indianapolis. Supports the shipbuilding and repair industry, contributing to economic activity. Demonstrates the Navy's commitment to maintaining its fleet through competitive procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Firm-fixed-price contract may not adequately account for unforeseen repair complexities.
Short performance period (88 days) could indicate a focused scope or potential for schedule pressure.

Positive Signals

Awarded under full and open competition.
Clear delivery order with defined end date.
Contract supports critical naval infrastructure.

Sector Analysis

The Ship Building and Repairing sector is vital for national defense, involving specialized skills and significant capital investment. Spending benchmarks vary widely based on vessel class and scope of work.

Small Business Impact

While the prime contractor is TECNICO CORPORATION, the data does not specify subcontracting efforts to small businesses. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Navy's procurement process, including full and open competition, provides a degree of oversight. Post-award monitoring of performance and cost will be crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to firm-fixed-price nature.
Short performance period may create schedule pressure.
Lack of detail on small business participation.
Need for detailed benchmarking against similar LCS maintenance contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to TECNICO CORPORATION. BASE WORK PACKAGE USS INDIANAPOLIS (LCS 17) SERM-005-26 (CMAV)

Who is the contractor on this award?

The obligated recipient is TECNICO CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2026-01-05. End: 2026-04-03.

What is the typical cost range for CMAV services on LCS-class vessels to assess if $3.6M is competitive?

Benchmarking against similar contracts for the Littoral Combat Ship (LCS) class is essential. While $3.6M is the awarded value, understanding the scope of work (CMAV) and comparing it to historical data for similar maintenance availabilities on LCS ships will reveal if this price is within the expected range or deviates significantly, indicating potential over or underpricing relative to market norms.

What are the specific risks associated with a firm-fixed-price contract for ship repair, especially for a vessel like the USS Indianapolis?

Firm-fixed-price contracts place the risk of cost overruns on the contractor. For ship repair, unforeseen issues like hidden corrosion, unexpected equipment failures, or the need for specialized parts can significantly increase costs beyond initial estimates. If these arise, the contractor may face financial losses, potentially impacting quality or leading to disputes, while the government might miss out on potential savings if the contractor initially overbid to cover contingencies.

How does the short performance duration of 88 days impact the effectiveness of the maintenance and the government's ability to ensure quality?

A compressed 88-day performance period for ship maintenance can create pressure on both the contractor and the government's quality assurance teams. While it aims for rapid fleet return, it may limit the thoroughness of inspections or the time available for addressing complex issues discovered late. Effective oversight is critical to ensure that quality is not sacrificed for speed and that all required maintenance tasks are completed to standard within the tight timeframe.

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: N0002420R4408

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Maritime Holdings, Inc.

Address: 831 INDUSTRIAL AVE, CHESAPEAKE, VA, 23324

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

Financial Breakdown

Contract Ceiling: $3,615,210

Exercised Options: $3,615,210

Current Obligation: $3,615,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002421D4465

IDV Type: IDC

Timeline