DoD awards $34.5M for USS MCFAUL (DDG-74) Ship Repair, Met with Full and Open Competition

Contract Overview

Contract Amount: $34,500,797 ($34.5M)

Contractor: Metro Machine Corp.

Awarding Agency: Department of Defense

Start Date: 2020-12-07

End Date: 2021-07-02

Contract Duration: 207 days

Daily Burn Rate: $166.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS MCFAUL (DDG-74) SRA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23507

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to METRO MACHINE CORP. for work described as: USS MCFAUL (DDG-74) SRA Key points: 1. Significant contract value for a major ship repair project. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project delays and cost overruns common in complex repairs. 4. Spending falls within the Ship Building and Repairing sector.

Value Assessment

Rating: good

The contract value of $34.5M for ship repair appears reasonable given the scope of work for a DDG-74 class vessel. Benchmarking against similar complex naval repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense maintenance.

Public Impact

Ensures the operational readiness of a key naval asset. Supports jobs in the shipbuilding and repair industry. Contributes to national security through well-maintained fleet capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep impacting final cost.
Complexity of naval vessel repair can lead to unforeseen issues.
Dependence on a single contractor for delivery order execution.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type limits cost escalation.
Clear delivery order with defined period of performance.

Sector Analysis

This contract falls under the Ship Building and Repairing sector, which is critical for maintaining the U.S. Navy's fleet. Spending in this area is substantial and directly tied to defense readiness.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Navy's oversight is crucial for ensuring the quality and timely completion of this repair. Contract performance monitoring will be key to accountability.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract awarded to a single entity (Metro Machine Corp.) for the delivery order.
Potential for schedule slippage in complex repair projects.
Reliance on specific technical expertise for naval vessel repair.
Geographic concentration of repair facilities could pose logistical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to METRO MACHINE CORP.. USS MCFAUL (DDG-74) SRA

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 $34.5 million.

What is the period of performance?

Start: 2020-12-07. End: 2021-07-02.

What was the basis for selecting Metro Machine Corp. among the bidders?

The selection of Metro Machine Corp. was likely based on a combination of factors including their technical proposal, past performance, and most importantly, their price competitiveness under the full and open competition. The government evaluates bids against pre-defined criteria to ensure the best value is obtained for taxpayer dollars.

What are the primary risks associated with this specific ship repair contract?

Key risks include potential for unforeseen structural issues discovered during the repair process, which could lead to cost overruns despite the firm fixed price. Delays in parts procurement or specialized labor availability could also impact the delivery schedule, affecting the ship's operational readiness.

How does this contract contribute to the overall effectiveness of the naval fleet?

This contract is essential for maintaining the operational effectiveness of the USS MCFAUL (DDG-74), a critical Arleigh Burke-class destroyer. Ensuring the vessel is fully repaired and mission-ready directly supports the Navy's ability to conduct operations, project power, and respond to global security challenges.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $35,196,770

Exercised Options: $34,500,797

Current Obligation: $34,500,797

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $14,337,797

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002416D4408

IDV Type: IDC

Timeline