DoD's $35.9M contract for USS Gettysburg SSRA awarded to BAE Systems, highlighting shipbuilding and repair needs

Contract Overview

Contract Amount: $35,949,727 ($35.9M)

Contractor: BAE Systems Maritime Solutions Norfolk Inc.

Awarding Agency: Department of Defense

Start Date: 2016-06-06

End Date: 2017-02-14

Contract Duration: 253 days

Daily Burn Rate: $142.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF USS GETTYSBURG SSRA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: IGF::CT::IGF USS GETTYSBURG SSRA Key points: 1. Contract value of $35.9 million indicates significant investment in naval vessel maintenance. 2. Awarded to a single, established contractor suggests a focus on specialized expertise. 3. The firm-fixed-price structure aims to control costs and provide budget certainty. 4. A relatively short performance period of 253 days points to a specific, time-bound project. 5. The contract falls under the shipbuilding and repair NAICS code, a critical defense sector. 6. Awarded by the Department of the Navy, underscoring its direct relevance to fleet readiness.

Value Assessment

Rating: good

The contract value of $35.9 million for the USS Gettysburg SSRA appears reasonable given the specialized nature of naval ship repair and modernization. While direct comparisons are difficult without more specific project details, BAE Systems is a major defense contractor with extensive experience in this area. The firm-fixed-price contract type suggests an effort to establish clear cost expectations, which is generally a positive sign for value. Benchmarking against similar complex ship repair contracts would provide further insight into the pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a competitive environment, though the specific number of bidders can sometimes be misleading without knowing the total number of eligible contractors. Full and open competition is generally preferred as it allows the government to solicit proposals from the widest possible range of qualified sources, fostering price discovery and potentially leading to better value.

Taxpayer Impact: Full and open competition increases the likelihood that taxpayer funds are used efficiently by driving down prices through a competitive bidding process.

Public Impact

The primary beneficiaries are the U.S. Navy fleet, ensuring the USS Gettysburg remains operational and mission-ready. Services delivered include ship systems repair and overhaul, crucial for maintaining naval power projection. The geographic impact is centered around the contractor's facilities, likely in Norfolk, Virginia, supporting regional defense industrial base employment. Workforce implications include skilled labor in shipbuilding, repair, and specialized technical fields within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the repair process, despite the fixed-price structure.
Dependence on a single contractor for critical ship maintenance could pose risks if performance issues emerge.
The specific scope of 'SSRA' needs clear definition to ensure all necessary work is covered without scope creep.

Positive Signals

Award to an experienced contractor like BAE Systems suggests a high likelihood of successful project completion.
The firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a robust process for selecting the best value offer.

Sector Analysis

This contract falls within the broader shipbuilding and repair sector, a critical component of the U.S. defense industrial base. This sector is characterized by high barriers to entry, specialized labor, and significant capital investment. The market size is substantial, driven by ongoing naval modernization and maintenance requirements. Comparable spending benchmarks would involve other major overhauls or repair contracts for naval vessels, which often run into tens or hundreds of millions of dollars depending on the scope and vessel class.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss' being false. The prime contractor, BAE Systems, is a large defense corporation. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business industrial base. Future analysis could explore subcontracting reports to understand the extent of small business participation.

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 embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance Contracts
Shipbuilding and Repair Services
Defense Readiness Contracts
Fleet Modernization Programs

Risk Flags

Potential for scope creep
Discovery of unforeseen issues during repair
Aging infrastructure risks
Dependence on specialized labor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. IGF::CT::IGF USS GETTYSBURG SSRA

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 $35.9 million.

What is the period of performance?

Start: 2016-06-06. End: 2017-02-14.

What is the historical spending pattern for USS Gettysburg maintenance and repair contracts?

Analyzing historical spending for the USS Gettysburg (SSN 767) requires accessing detailed contract databases over its service life. Typically, a vessel of this age and type undergoes periodic maintenance, modernization, and repair availabilities. These can range from routine dockyard work to more extensive overhauls. Spending patterns would likely show cyclical investments, with larger expenditures during major maintenance periods and smaller amounts for routine upkeep. Without specific historical data for this hull number, it's difficult to provide precise figures, but such contracts often represent significant, multi-million dollar investments spread across several years, reflecting the complexity and cost of maintaining a nuclear-powered attack submarine.

How does the awarded amount compare to the estimated cost or budget for this SSRA project?

The awarded amount of $35,949,727.19 represents the final negotiated price for the USS Gettysburg Ship Systems Repair and Alteration (SSRA) project. To assess if this is comparable to the estimated cost or budget, one would need access to the government's initial cost estimates or budget allocations for this specific availability. Often, awarded contract values are close to or slightly below initial estimates due to competitive bidding and negotiation. However, if the awarded amount significantly exceeds initial estimates, it could indicate underestimation, scope changes, or increased market costs. Without the government's baseline estimate, a direct comparison of value against budget is not possible from the award data alone.

What specific systems or components are covered under the 'SSRA' designation for the USS Gettysburg?

The designation 'SSRA' typically stands for Ship Systems Repair and Alteration. For a specific vessel like the USS Gettysburg (SSN 767), this would encompass a wide range of systems critical to its operation as a nuclear-powered attack submarine. This could include repairs and alterations to propulsion systems (including the nuclear reactor components, though these often have separate, highly specialized oversight), combat systems (weapons launchers, sonar, fire control), navigation systems, auxiliary machinery, hull integrity, habitability systems, and damage control equipment. The exact scope is detailed in the contract's Statement of Work (SOW), which outlines the specific tasks, inspections, repairs, and any modifications required during this availability.

What is BAE Systems Maritime Solutions' track record with similar naval repair contracts?

BAE Systems Maritime Solutions is a major global defense contractor with a substantial track record in naval shipbuilding, repair, and modernization. They have been involved in numerous complex projects for the U.S. Navy and other navies worldwide. Their experience likely includes major overhauls, upgrades, and sustainment services for various classes of warships, including submarines and surface vessels. Specific to the USS Gettysburg SSRA, BAE's history with similar submarine availabilities, their facilities' capabilities, and their established relationships with the Navy's acquisition and maintenance commands would be key indicators of their suitability and past performance on comparable contracts.

Are there any known risks associated with the specific type of work (SSRA) on this class of submarine?

Performing Ship Systems Repair and Alteration (SSRA) on a submarine, particularly an older one like the USS Gettysburg (which was commissioned in 1993), carries inherent risks. These can include the discovery of unexpected material degradation or system failures during disassembly and inspection, leading to scope growth and cost increases, even under a fixed-price contract. Aging systems may require obsolescence management or redesign. Furthermore, working with nuclear-related systems, even for auxiliary or non-nuclear components, requires stringent safety protocols and specialized expertise. The confined spaces within a submarine also present logistical and safety challenges for repair crews. The Navy's program office and the contractor must meticulously manage these risks through detailed planning, risk assessments, and contingency planning.

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: N5005416R0003

Offers Received: 2

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,949,727

Exercised Options: $35,949,727

Current Obligation: $35,949,727

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $11,319,949

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline