DoD awards $57.4M for USS Gravely (DDG-107) Dry Docking and Related Availability
Contract Overview
Contract Amount: $57,393,268 ($57.4M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2019-09-16
End Date: 2020-10-25
Contract Duration: 405 days
Daily Burn Rate: $141.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS GRAVELY (DDG-107) DSRA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $57.4 million to METRO MACHINE CORP. for work described as: USS GRAVELY (DDG-107) DSRA Key points: 1. Contract awarded to Metro Machine Corp. for ship repair services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is significant for a single ship availability. 4. The sector is dominated by a few large shipbuilders and repair yards.
Value Assessment
Rating: good
The contract value of $57.4M for a single ship availability appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar DDG availabilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered.
Public Impact
Ensures the operational readiness of a key naval asset, the USS Gravely. Supports the shipbuilding and repair industry, contributing to jobs and economic activity. Maintains the U.S. Navy's global presence and power projection capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen repairs are required.
- Dependence on a single contractor for this specific availability.
Positive Signals
- Awarded under full and open competition.
- Clear statement of work for ship repair.
Sector Analysis
The shipbuilding and repair sector is highly specialized, with significant barriers to entry. Major naval contracts are often competed among a limited number of large, experienced firms.
Small Business Impact
While the prime contractor is likely a large firm, the contract may offer subcontracting opportunities for smaller businesses specializing in specific repair components or services.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract to ensure timely completion and adherence to specifications. Robust oversight is crucial for complex naval repair projects.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy.
- Potential for scope creep and cost overruns.
- Dependence on a single contractor for critical repairs.
- Ship repair is a specialized and potentially volatile market.
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 $57.4 million to METRO MACHINE CORP.. USS GRAVELY (DDG-107) DSRA
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 $57.4 million.
What is the period of performance?
Start: 2019-09-16. End: 2020-10-25.
What is the typical duration and cost for similar DDG availabilities, and how does this contract compare?
The duration of 405 days is substantial, reflecting the scope of work. Comparing the $57.4M cost to historical data for similar DDG availabilities is essential. Factors like the specific class, age of the vessel, and the extent of planned maintenance significantly influence cost and duration, making direct comparisons challenging without detailed context.
What are the key performance metrics and potential risks associated with Metro Machine Corp.'s ability to deliver on this contract?
Key performance metrics would include adherence to schedule, quality of repairs, and cost control. Potential risks include delays due to unforeseen technical issues, supply chain disruptions for specialized parts, or labor shortages. The Navy's contract management team would monitor these closely, with performance clauses in place to mitigate risks.
How does the 'Ship Building and Repairing' NAICS code reflect the overall defense spending landscape?
The 'Ship Building and Repairing' NAICS code represents a critical, albeit specialized, segment of defense spending. It highlights the significant investment required to maintain and modernize naval fleets. This sector is characterized by high capital intensity, long contract cycles, and a concentrated industrial base, reflecting the strategic importance of naval power.
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: General Dynamics Corp (UEI: 001381284)
Address: 200 LIGON ST, 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: $57,409,361
Exercised Options: $57,393,268
Current Obligation: $57,393,268
Actual Outlays: $5,033,041
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $23,468,899
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002416D4408
IDV Type: IDC
Timeline
Start Date: 2019-09-16
Current End Date: 2020-10-25
Potential End Date: 2020-10-25 00:00:00
Last Modified: 2021-11-02
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