DoD's $34.7M contract for USS James E. Williams DSRA IGF awarded to BAE Systems Maritime Solutions

Contract Overview

Contract Amount: $34,744,697 ($34.7M)

Contractor: BAE Systems Maritime Solutions Norfolk Inc.

Awarding Agency: Department of Defense

Start Date: 2015-08-20

End Date: 2016-04-29

Contract Duration: 253 days

Daily Burn Rate: $137.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TYCOM USS JAMES E WILLIAMS (DDG-95) DSRA IGF::CT::IGF

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: TYCOM USS JAMES E WILLIAMS (DDG-95) DSRA IGF::CT::IGF Key points: 1. The contract value represents a significant investment in maintaining naval readiness. 2. BAE Systems Maritime Solutions, a known entity in naval support, secured this award. 3. The fixed-price nature of the contract aims to control costs for the government. 4. The duration of the contract suggests a comprehensive scope of work. 5. The award falls under the Ship Building and Repair sector, crucial for fleet maintenance. 6. The contract was awarded through full and open competition, indicating a robust bidding process.

Value Assessment

Rating: good

The contract value of $34.7 million for a Destroyer Squadron Advanced Readiness (DSRA) Intermediate Gate Fix (IGF) appears reasonable given the scope of work for a major naval vessel. Benchmarking against similar complex repair and maintenance contracts for Arleigh Burke-class destroyers would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to establish clear cost expectations upfront, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of multiple bidders in such a competitive environment typically drives prices down and encourages innovation. The specific number of bidders is not provided, but the category indicates a healthy market for these specialized services.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and better value for the government's investment in critical naval maintenance.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the USS James E. Williams (DDG-95) is maintained to high standards. The services delivered include intermediate gate fix (IGF) and depot-level maintenance, crucial for extending the service life and operational capability of the destroyer. The geographic impact is primarily within the operational area of the USS James E. Williams, likely supporting its homeport and deployment readiness. Workforce implications include employment for skilled tradespeople, engineers, and support staff at BAE Systems Maritime Solutions and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical maintenance could pose risks if performance issues emerge.
The specific details of the 'DSRA IGF' are not fully elaborated, making a precise risk assessment challenging without further context.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type helps to lock in costs and reduce the risk of budget overruns.
BAE Systems Maritime Solutions has a track record in naval shipbuilding and repair, indicating potential for reliable execution.

Sector Analysis

The Ship Building and Repair sector is a critical component of the defense industrial base, supporting the maintenance, modernization, and construction of naval vessels. This contract falls within the broader category of defense services, specifically focusing on the upkeep of existing fleet assets. Spending in this sector is often driven by fleet readiness requirements and the lifecycle of naval platforms. Comparable spending benchmarks would involve analyzing other maintenance contracts for Arleigh Burke-class destroyers or similar naval platforms.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). While BAE Systems Maritime Solutions is a large business, there may be subcontracting opportunities for small businesses within the scope of this work. The impact on the small business ecosystem would depend on the extent to which BAE Systems utilizes small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract structure, which holds the contractor responsible for delivering the specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Arleigh Burke-class Destroyer Maintenance
Defense Readiness Contracts
Shipbuilding and Repair Services
Department of the Navy Contracts

Risk Flags

Contract Duration
Scope of Work Definition
Past Performance Data Availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. TYCOM USS JAMES E WILLIAMS (DDG-95) DSRA IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $34.7 million.

What is the period of performance?

Start: 2015-08-20. End: 2016-04-29.

What is the historical spending pattern for DSRA IGF contracts for the USS James E. Williams or similar vessels?

Analyzing historical spending for similar 'Destroyer Squadron Advanced Readiness Intermediate Gate Fix' (DSRA IGF) contracts for the USS James E. Williams (DDG-95) or comparable Arleigh Burke-class destroyers would provide valuable context for the $34.7 million award. Without specific historical data, it's difficult to ascertain if this represents an increase, decrease, or stable spending trend. Factors influencing historical spending could include the vessel's age, previous maintenance cycles, specific technological upgrades required, and the competitive landscape at the time of prior awards. A trend analysis would help identify potential cost efficiencies or escalating maintenance needs over time for this class of ship.

How does the performance of BAE Systems Maritime Solutions on similar naval maintenance contracts compare?

Evaluating the past performance of BAE Systems Maritime Solutions on comparable naval maintenance contracts is crucial for assessing the risk and potential success of this $34.7 million award. Information regarding their track record, including on-time delivery, adherence to budget, quality of work, and any past disputes or contract modifications, would be informative. Agencies often use past performance evaluations as a key factor in contract awards. A review of their history with the Department of the Navy or other defense branches for similar services, such as ship repair, modernization, or overhaul, would indicate their reliability and capability to execute this specific DSRA IGF contract effectively.

What specific technical scope of work is encompassed by 'DSRA IGF' and how does it impact the overall readiness of the USS James E. Williams?

The term 'DSRA IGF' likely refers to a specific set of maintenance and repair tasks required for a Destroyer Squadron's Advanced Readiness program, focusing on an 'Intermediate Gate Fix.' This suggests a scheduled, mid-cycle maintenance intervention designed to address critical systems and ensure the vessel meets operational readiness standards before a major overhaul or deployment. The scope could include inspections, repairs to propulsion, electrical, or combat systems, and potentially habitability or structural work. The impact on the USS James E. Williams' readiness is direct; successful completion of the IGF ensures the ship remains a capable asset, minimizing unexpected downtime and maximizing its availability for its intended missions.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this typically revolve around ensuring the USS James E. Williams (DDG-95) achieves and maintains its required operational readiness post-maintenance. Specific KPIs could include adherence to the schedule (e.g., completion by the specified end date of April 29, 2016), meeting all technical specifications and quality standards outlined in the contract, and staying within the firm fixed price of $34.7 million. Other potential KPIs might involve the successful testing and certification of repaired systems, minimal rework required after completion, and the overall assessment of the vessel's readiness by the Navy upon contract close-out. The effectiveness of the 'Intermediate Gate Fix' in preventing future issues would also be a critical, albeit longer-term, measure of success.

How does the $34.7 million contract value compare to the total lifecycle cost of an Arleigh Burke-class destroyer?

The $34.7 million contract value for the DSRA IGF represents a specific maintenance expenditure within the broader lifecycle cost of an Arleigh Burke-class destroyer. The total lifecycle cost of such a vessel, which can span 30-40 years or more, encompasses acquisition, personnel, training, fuel, operations, and extensive maintenance and modernization over its service life. This particular contract is a component of the operational and sustainment phase. While $34.7 million is a substantial sum for a single maintenance event, it is a fraction of the overall multi-billion dollar lifecycle cost of a modern warship. Understanding this context highlights the importance of such maintenance contracts in preserving the Navy's investment and ensuring the long-term viability of the fleet.

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: N5005415R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,778,858

Exercised Options: $34,744,697

Current Obligation: $34,744,697

Subaward Activity

Number of Subawards: 96

Total Subaward Amount: $27,524,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline