Navy Awards $86.6M Contract for Ship Building and Repair to Metro Machine Corp
Contract Overview
Contract Amount: $86,555,307 ($86.6M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2022-11-28
End Date: 2023-12-07
Contract Duration: 374 days
Daily Burn Rate: $231.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TYCOM WORK ITEMS
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23523
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $86.6 million to METRO MACHINE CORP. for work described as: TYCOM WORK ITEMS Key points: 1. Contract value of $86.6 million awarded to Metro Machine Corp. 2. Full and open competition was utilized for this award. 3. The contract is for ship building and repairing services. 4. The contract duration is 374 days.
Value Assessment
Rating: fair
The contract value of $86.6 million for ship building and repair services appears reasonable given the duration of 374 days. However, without specific details on the scope of work and the number of work items, a precise comparison to similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes competitive bidding and can lead to cost savings.
Public Impact
Ensures continued maintenance and repair of naval vessels. Supports the operational readiness of the U.S. Navy fleet. Contributes to the shipbuilding and repair industry in Virginia.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed scope of work for 'TYCOM WORK ITEMS'.
- No specific breakdown of the 231431 base repair cost.
- Potential for cost overruns if work items are complex or unforeseen issues arise.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type can limit cost uncertainty.
- Contract supports critical naval operations.
Sector Analysis
The shipbuilding and repair sector is a critical component of national defense, involving complex engineering and skilled labor. Spending in this sector can vary significantly based on fleet modernization needs and maintenance cycles.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded through full and open competition, suggesting a degree of oversight in the procurement process. However, the specific oversight mechanisms for 'TYCOM WORK ITEMS' are not detailed.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Ambiguity in 'TYCOM WORK ITEMS'.
- Lack of detailed cost breakdown for base repairs.
- Potential for scope creep given the nature of repair work.
- Limited information on small business participation.
Tags
ship-building-and-repairing, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.6 million to METRO MACHINE CORP.. TYCOM WORK ITEMS
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 $86.6 million.
What is the period of performance?
Start: 2022-11-28. End: 2023-12-07.
What is the specific nature of the 'TYCOM WORK ITEMS' and how do they contribute to the overall value of the contract?
The 'TYCOM WORK ITEMS' likely refer to a set of tasks or projects managed by the Type Commander (TYCOM) for ship maintenance, repair, or modernization. Without a detailed breakdown, it's difficult to assess their specific contribution to the $86.6 million contract value. Understanding these items is crucial for evaluating the contract's true scope and necessity.
How does the base repair cost of $231,431 compare to industry benchmarks for similar repair tasks?
The base repair cost of $231,431 is a relatively small component of the total contract value. To assess its competitiveness, it would need to be benchmarked against the cost of similar repair tasks performed on comparable vessels within the industry. Factors like the complexity of the repair, required parts, and labor hours would influence this comparison.
What mechanisms are in place to ensure the effectiveness and efficiency of Metro Machine Corp.'s performance under this contract?
Effectiveness and efficiency are typically ensured through performance metrics, quality assurance checks, and regular progress reviews outlined in the contract. The Department of the Navy would likely have contracting officers' representatives (CORs) monitoring the work. However, the specific performance standards and oversight procedures for this contract are not detailed in the provided data.
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: N5005422R0015
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $86,564,841
Exercised Options: $86,555,307
Current Obligation: $86,555,307
Actual Outlays: $56,732,745
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $35,438,292
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-28
Current End Date: 2023-12-07
Potential End Date: 2023-12-07 00:00:00
Last Modified: 2024-06-13
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