DoD's $27.3M Ship Repair Contract Awarded to Metro Machine Corp Under Full and Open Competition
Contract Overview
Contract Amount: $27,293,519 ($27.3M)
Contractor: Metro Machine Corp
Awarding Agency: Department of Defense
Start Date: 2021-02-25
End Date: 2021-11-23
Contract Duration: 271 days
Daily Burn Rate: $100.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: SHIP REPAIR
Place of Performance
Location: BREMERTON, KITSAP County, WASHINGTON, 98314
Plain-Language Summary
Department of Defense obligated $27.3 million to METRO MACHINE CORP for work described as: SHIP REPAIR Key points: 1. The contract value is $27.3 million, awarded for ship repair services. 2. Metro Machine Corp secured the contract through full and open competition. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The sector is Defense, specifically ship building and repairing.
Value Assessment
Rating: good
The Cost Plus Award Fee structure suggests a focus on performance and potential for cost savings through incentives. Benchmarking against similar contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for the ship repair services.
Public Impact
Ensures readiness of naval vessels through essential repair services. Supports the maritime industrial base and associated jobs. Provides critical infrastructure maintenance for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed closely.
- The duration of the contract (271 days) is relatively short for major repair work, potentially indicating specific scope.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- The contract is for essential ship repair, directly supporting naval operations.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repairing (NAICS 336611). Spending in this area is critical for maintaining naval fleet readiness and supporting the defense industrial base.
Small Business Impact
There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award. Further analysis would be needed to determine their participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on performance monitoring and cost control under the Cost Plus Award Fee structure.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts.
- Lack of transparency on specific award fee criteria.
- Limited information on small business participation.
- The contract is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, requiring further context.
Tags
ship-building-and-repairing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.3 million to METRO MACHINE CORP. SHIP REPAIR
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 $27.3 million.
What is the period of performance?
Start: 2021-02-25. End: 2021-11-23.
What is the typical profit margin for Cost Plus Award Fee contracts in the ship repair industry compared to other contract types?
Cost Plus Award Fee (CPAF) contracts often allow for a base fee plus an award fee tied to performance metrics. Profit margins can vary, but CPAF aims to incentivize efficiency and quality, potentially leading to better value than pure cost-plus contracts. However, they can be more complex to administer and may still result in higher overall costs than fixed-price contracts if performance targets are consistently exceeded or poorly defined.
What are the key performance indicators (KPIs) used to determine the award fee for Metro Machine Corp in this contract?
The specific Key Performance Indicators (KPIs) for this Cost Plus Award Fee contract are not detailed in the provided data. Typically, for ship repair, KPIs might include on-time delivery, adherence to quality standards, safety compliance, budget management, and successful completion of specified repair tasks. The Department of the Navy would establish and monitor these metrics to determine the award fee.
How does the $27.3 million contract value compare to the average annual spending on ship repair by the Department of the Navy?
The $27.3 million contract value represents a specific delivery order for ship repair services. The Department of the Navy's annual spending on ship repair is significantly higher, often in the billions of dollars, encompassing a wide range of maintenance, modernization, and overhaul activities across the fleet. This single contract is a component of that larger expenditure.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R4300
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 423 PACIFIC AVE STE 200, BREMERTON, WA, 98337
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,293,519
Exercised Options: $27,293,519
Current Obligation: $27,293,519
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002419D4310
IDV Type: IDC
Timeline
Start Date: 2021-02-25
Current End Date: 2021-11-23
Potential End Date: 2021-11-23 00:00:00
Last Modified: 2023-02-28
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