Navy awards $2.57M for CVN 68 continuous maintenance, highlighting ship repair sector needs

Contract Overview

Contract Amount: $2,569,781 ($2.6M)

Contractor: Metro Machine Corp

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-02-27

Contract Duration: 154 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: CVN 68 CONTINUOUS MAINTENANCE AVAILABILITY (CMAV) 6A1

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98314

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to METRO MACHINE CORP for work described as: CVN 68 CONTINUOUS MAINTENANCE AVAILABILITY (CMAV) 6A1 Key points: 1. Contract focuses on essential maintenance for a major naval asset, indicating ongoing demand for fleet readiness. 2. The award to Metro Machine Corp suggests a competitive landscape for ship maintenance services. 3. Performance-based contract structure aims to incentivize efficient and effective repair work. 4. The duration of the contract points to a significant scope of work required for the vessel. 5. This award reflects the broader trend of sustained investment in naval shipbuilding and repair.

Value Assessment

Rating: good

The contract value of $2.57 million for a 154-day maintenance availability appears reasonable given the complexity of maintaining a Nimitz-class aircraft carrier. Benchmarking against similar continuous maintenance availabilities for capital ships would provide a more precise value assessment. However, the cost-plus incentive fee structure suggests an effort to control costs while ensuring quality, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive favorable pricing and ensure the selection of the most capable contractor. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to lower overall costs for essential defense services.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the CVN 68 is maintained to high standards. Services delivered include critical maintenance and repair to ensure the continued functionality of the aircraft carrier. The geographic impact is likely centered around the naval shipyard where the maintenance will be performed, potentially in Washington state. Workforce implications include employment opportunities for skilled tradespeople in the shipbuilding and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contract types if not managed rigorously.
Dependence on a single contractor for critical maintenance could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a healthy market for these services.
Incentive fee structure encourages contractor performance and cost control.
Contract duration aligns with the significant scope of work for carrier maintenance.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and defense needs. This contract falls within the defense segment, specifically focusing on the maintenance and sustainment of high-value naval assets. Spending in this sector is often characterized by large, complex contracts requiring specialized expertise and facilities. Comparable spending benchmarks would involve analyzing other maintenance availabilities for aircraft carriers and other major naval vessels.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Metro Machine Corp is likely a large business. Subcontracting opportunities for small businesses may exist within the scope of this contract, particularly for specialized services or components, but this is not explicitly detailed in the provided information. The overall impact on the small business ecosystem depends on the extent of any subcontracting awarded.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are built into the cost-plus incentive fee structure, which rewards efficient performance. Transparency is facilitated by the contract being awarded under full and open competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Aircraft Carrier Sustainment Programs
Defense Industrial Base Support
Shipbuilding and Repair Services

Risk Flags

Cost Growth Potential (CPIF Contract Type)
Performance Risk (Dependence on Single Contractor)
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to METRO MACHINE CORP. CVN 68 CONTINUOUS MAINTENANCE AVAILABILITY (CMAV) 6A1

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 $2.6 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-02-27.

What is Metro Machine Corp's track record with similar naval maintenance contracts?

Metro Machine Corp has a history of performing maintenance, repair, and overhaul services for naval vessels. While specific details on past contracts of identical scope and value are not provided here, their involvement in the CVN 68 CMAV suggests they possess the necessary certifications, facilities, and expertise. A deeper dive into their contract history with the Department of the Navy, including performance reviews and any past issues, would offer a more comprehensive understanding of their reliability and capability in executing complex maintenance availabilities for capital ships.

How does the $2.57 million cost compare to similar maintenance availabilities for Nimitz-class carriers?

The $2.57 million award for the CVN 68 Continuous Maintenance Availability (CMAV) represents a specific funding allocation for a defined period (154 days). Direct cost comparisons are challenging without knowing the exact scope of work, the specific maintenance tasks performed, and the prevailing market rates at the time of award for each comparable availability. Aircraft carrier maintenance costs can fluctuate significantly based on the vessel's condition, the complexity of required repairs, and the duration of the availability. However, this figure appears to be within a plausible range for a segment of a carrier's overall lifecycle maintenance, rather than a full overhaul.

What are the primary risks associated with this cost-plus incentive fee (CPIF) contract?

The primary risk with a CPIF contract is the potential for cost growth if the contractor's actual costs exceed the target cost, although the incentive fee structure aims to mitigate this. The government shares in cost savings if the final cost is below the target, and the contractor shares in cost overruns if above the target, up to a ceiling. However, the contractor still has an incentive to incur costs to achieve higher fee percentages. Rigorous oversight, clear definition of performance metrics, and effective negotiation of the target cost and incentive structure are crucial to managing these risks and ensuring value for the government.

How effective is the incentive fee structure in ensuring timely and quality completion of maintenance?

The effectiveness of the incentive fee structure hinges on the specific metrics and targets established within the contract. An incentive fee is designed to motivate the contractor to achieve specific performance objectives, which can include timely completion, quality of work, and cost control. If the performance metrics are well-defined, measurable, and aligned with the Navy's goals for the CMAV, the incentive fee can be a powerful tool. Conversely, poorly defined or unachievable targets may render the incentive ineffective. Regular performance monitoring and clear communication between the Navy and Metro Machine Corp are essential to ensure the incentive drives the desired outcomes.

What is the historical spending trend for CVN 68 maintenance availabilities?

Historical spending data for CVN 68 maintenance availabilities would reveal trends in the frequency and cost of these events over the vessel's service life. Analyzing past CMAVs and other major maintenance periods would indicate whether costs are increasing, decreasing, or remaining stable, and if the duration of availabilities is changing. Such analysis could also highlight shifts in the types of maintenance being performed, potentially reflecting evolving technological requirements or aging of the vessel. Without access to specific historical data for CVN 68, it's difficult to ascertain precise trends, but such information is vital for long-term budget planning and assessing the efficiency of current maintenance strategies.

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

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 423 PACIFIC AVE, 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: $2,569,781

Exercised Options: $2,569,781

Current Obligation: $2,569,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002425D4110

IDV Type: IDC

Timeline