DoD's $15.6M Ship Repair Contract with BAE Systems Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $15,558,595 ($15.6M)
Contractor: BAE Systems SAN Francisco Ship Repair Inc.
Awarding Agency: Department of Defense
Start Date: 2010-01-07
End Date: 2010-05-06
Contract Duration: 119 days
Daily Burn Rate: $130.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CLIN 001, CAT A WORK ITEMS
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94107
Plain-Language Summary
Department of Defense obligated $15.6 million to BAE SYSTEMS SAN FRANCISCO SHIP REPAIR INC. for work described as: CLIN 001, CAT A WORK ITEMS Key points: 1. The contract awarded to BAE Systems for ship repair work represents a significant expenditure. 2. Competition for this contract was full and open, suggesting potential for competitive pricing. 3. The firm fixed-price structure aims to control costs, but the final price warrants review. 4. The sector is critical for defense readiness, making efficient spending paramount.
Value Assessment
Rating: fair
The contract's value of $15.6 million for ship repair needs to be benchmarked against similar services. Without specific details on the scope of work (CAT A WORK ITEMS), it's difficult to definitively assess if the price is competitive. The firm fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the effectiveness of this competition in achieving the best possible price depends on the number and quality of bids received.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are used efficiently. The final price achieved will determine the ultimate taxpayer impact.
Public Impact
This contract supports the Department of the Navy's operational capabilities. The work performed directly impacts the readiness of naval assets. Spending in the ship repair sector can have ripple effects on the regional economy, particularly in California. The duration of the contract (119 days) suggests a focused scope of work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope for 'CAT A WORK ITEMS' hinders precise value assessment.
- Potential for cost overruns if fixed price doesn't account for unforeseen issues.
- Limited duration might indicate a specific, potentially high-cost, repair task.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Contract supports critical defense infrastructure.
Sector Analysis
The ship building and repairing sector is a vital component of national defense spending. Benchmarks for similar repair contracts are essential for evaluating the value of this $15.6 million award.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the analysis does not include specific small business participation details.
Oversight & Accountability
Oversight of this contract would involve ensuring the work is completed to specification and within the firm fixed-price. The definitive contract award type suggests a single, defined agreement.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed scope definition for 'CAT A WORK ITEMS'.
- Potential for contractor to underperform if costs exceed fixed price.
- Need for benchmarking against similar repair contracts.
- Contract duration is relatively short, implying a specific, potentially high-value, task.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to BAE SYSTEMS SAN FRANCISCO SHIP REPAIR INC.. CLIN 001, CAT A WORK ITEMS
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SAN FRANCISCO SHIP REPAIR 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 $15.6 million.
What is the period of performance?
Start: 2010-01-07. End: 2010-05-06.
How does the final cost of $15.6 million compare to the estimated cost or budget for these specific 'CAT A WORK ITEMS'?
Without access to the government's cost estimates or a more detailed breakdown of 'CAT A WORK ITEMS', a direct comparison is challenging. The firm fixed-price nature suggests the contractor assumed the risk of cost overruns. However, understanding the initial bidding process and any deviations from estimates would provide a clearer picture of value.
What specific risks were identified during the full and open competition that might have influenced the final price or contract terms?
The primary risk in a firm fixed-price contract is the potential for the contractor to incur losses if costs exceed the agreed price. Conversely, the government risks paying a premium if the competition was not robust enough. Specific risks related to the 'CAT A WORK ITEMS' themselves, such as technical complexity or material availability, would also influence pricing and require careful management.
How effectively did the full and open competition process ensure that the $15.6 million expenditure represents the best value for the Department of the Navy?
The 'full and open competition' method is designed to maximize value by encouraging multiple bids. Its effectiveness hinges on the number and competitiveness of the bids received. If BAE Systems was the sole or significantly superior bidder, the price might reflect that reality. A review of the bidding process and the pricing structure would be needed to confirm optimal value realization.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4044209R4014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: FOOT OF 20TH ST PIER 70, SAN FRANCISCO, CA, 94107
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,648,942
Exercised Options: $15,558,595
Current Obligation: $15,558,595
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-01-07
Current End Date: 2010-05-06
Potential End Date: 2010-05-06 00:00:00
Last Modified: 2015-11-30
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