Navy's $44.8M USS Sampson Repair Contract Awarded to Metro Machine Corp

Contract Overview

Contract Amount: $44,805,376 ($44.8M)

Contractor: Metro Machine Corp

Awarding Agency: Department of Defense

Start Date: 2023-03-21

End Date: 2023-10-29

Contract Duration: 222 days

Daily Burn Rate: $201.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS SAMPSON (DDG 102) FY23 SRA

Place of Performance

Location: EVERETT, SNOHOMISH County, WASHINGTON, 98207

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to METRO MACHINE CORP for work described as: USS SAMPSON (DDG 102) FY23 SRA Key points: 1. Significant contract value for ship repair services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector focus on naval ship maintenance and repair.

Value Assessment

Rating: questionable

The contract value of $44.8M for ship repair is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for naval vessel maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayer funds being spent at a higher rate than necessary for this repair work.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The specific repair work performed on the USS Sampson is crucial for naval readiness. The long-term implications for the Navy's ship maintenance budget are unclear without comparative data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract awarded to a specific company for necessary repairs
Fixed-price contract type can limit cost overruns

Sector Analysis

This contract falls within the shipbuilding and repairing sector, specifically for naval vessels. Spending in this area is critical for national defense, but efficiency is key.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the awardee is Metro Machine Corp.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award was sound and that the work performed meets all quality standards and contractual obligations.

Related Government Programs

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

Risk Flags

Sole-source award limits competitive pricing.
Potential for inflated costs due to lack of competition.
Transparency regarding justification for sole-source award is limited.
Difficulty in benchmarking costs without competitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to METRO MACHINE CORP. USS SAMPSON (DDG 102) FY23 SRA

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 $44.8 million.

What is the period of performance?

Start: 2023-03-21. End: 2023-10-29.

What was the justification for awarding this contract on a sole-source basis instead of through competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without further documentation, it's impossible to determine the specific reason for this contract's non-competitive nature. This lack of transparency hinders a full assessment of value for money.

What is the benchmark per-unit cost for similar ship repair services on destroyers of this class?

Establishing a precise benchmark per-unit cost for ship repair is complex due to variations in scope, parts, labor rates, and vessel condition. However, comparing this $44.8M contract to historical data for similar DDG-class repairs, especially those awarded competitively, would be essential to gauge its reasonableness and identify potential overpricing.

How does the duration and cost of this repair compare to the expected maintenance cycle for the USS Sampson?

The contract duration was 222 days. Understanding if this aligns with or deviates from the planned maintenance schedule and budget for the USS Sampson is crucial. Significant deviations could indicate underlying issues with the repair process, scope creep, or initial cost estimation, impacting overall fleet readiness and budget predictability.

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: N4523A23R0555

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $44,878,750

Exercised Options: $44,805,376

Current Obligation: $44,805,376

Actual Outlays: $26,852,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline