DoD awards $52.7M for USS Anzio (CG 68) Ship Repair to BAE Systems
Contract Overview
Contract Amount: $52,740,278 ($52.7M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-04
End Date: 2019-11-26
Contract Duration: 722 days
Daily Burn Rate: $73.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS ANZIO (CG 68) SRA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS ANZIO (CG 68) SRA Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship repair services. 2. Full and open competition was utilized for this contract. 3. The contract value is $52.7 million. 4. The period of performance spans 722 days.
Value Assessment
Rating: fair
The contract value of $52.7 million for ship repair is within a reasonable range for major naval vessel maintenance. Benchmarking against similar complex ship repair contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among qualified contractors.
Public Impact
Ensures readiness of a key naval asset, the USS Anzio. Supports the shipbuilding and repair sector, contributing to industry jobs. The award impacts the operational capabilities of the U.S. Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex ship repair.
- Dependence on a single contractor for a critical repair period.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps control costs.
Sector Analysis
This contract falls within the shipbuilding and repair sector, which is a critical component of national defense. Spending benchmarks for major naval vessel repairs can vary significantly based on the ship class and scope of work.
Small Business Impact
While the primary awardee is BAE Systems, a large defense contractor, opportunities for small businesses may exist through subcontracting. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's contracting process, including the use of full and open competition and firm fixed price contracts, suggests adherence to standard oversight procedures. Monitoring performance and costs throughout the contract is crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded under full and open competition.
- Firm fixed price contract type.
- Supports critical naval asset readiness.
- Awarded to a reputable defense contractor.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS ANZIO (CG 68) SRA
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 $52.7 million.
What is the period of performance?
Start: 2017-12-04. End: 2019-11-26.
What is the historical cost performance for similar ship repair contracts awarded by the Department of the Navy?
Historical data on similar ship repair contracts is essential for a comprehensive value assessment. Analyzing past projects of comparable scope and complexity can reveal trends in cost overruns, schedule adherence, and contractor performance. This benchmark data helps determine if the current $52.7 million award is competitive and represents good value for the taxpayer.
What are the specific risks associated with the repair scope for the USS Anzio (CG 68)?
The specific risks associated with the USS Anzio's repair scope would depend on the vessel's age, operational history, and the extent of planned maintenance and upgrades. Potential risks include unforeseen structural issues, complex system failures, and the availability of specialized parts or expertise. A thorough technical assessment and risk mitigation plan from the contractor are vital.
How effectively does the firm fixed price contract type manage potential cost escalations during this extensive repair period?
A firm fixed price (FFP) contract is designed to shift cost risk to the contractor, providing a ceiling on government expenditure. For an extensive repair period like the 722 days for the USS Anzio, an FFP contract is generally effective in managing cost escalations, provided the scope of work is well-defined. However, significant scope changes or unforeseen issues could lead to contract modifications.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002415R4405
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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $52,740,278
Exercised Options: $52,740,278
Current Obligation: $52,740,278
Actual Outlays: $4,227,511
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $11,731,795
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002416D4406
IDV Type: IDC
Timeline
Start Date: 2017-12-04
Current End Date: 2019-11-26
Potential End Date: 2019-11-26 00:00:00
Last Modified: 2020-07-22
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