DoD's Navy Awards $122.5M for USS Eisenhower Maintenance to Metro Machine Corp
Contract Overview
Contract Amount: $122,486,696 ($122.5M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2024-11-12
End Date: 2026-03-27
Contract Duration: 500 days
Daily Burn Rate: $245.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: USS EISENHOWER (CVN 69) FY25 PIA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $122.5 million to METRO MACHINE CORP. for work described as: USS EISENHOWER (CVN 69) FY25 PIA Key points: 1. Significant contract for ship maintenance, highlighting the ongoing need for naval readiness. 2. Metro Machine Corp. secured the award, indicating their competitive position in the sector. 3. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. Shipbuilding and Repair is a critical sector for national defense infrastructure.
Value Assessment
Rating: good
The contract value of $122.5 million for a 500-day duration appears reasonable for complex naval vessel maintenance. Benchmarking against similar large-scale ship 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense services.
Public Impact
Ensures operational readiness of a key naval asset, the USS Eisenhower. Supports jobs within the shipbuilding and repair industry. Demonstrates the government's commitment to maintaining its fleet through competitive contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to increase costs.
- Long duration of the contract may introduce unforeseen economic factors.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense infrastructure.
Sector Analysis
The shipbuilding and repair sector is vital for national security, involving specialized skills and significant capital investment. Spending benchmarks for similar naval vessel maintenance contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
While this specific award went to Metro Machine Corp., the broader shipbuilding and repair sector often involves a mix of large prime contractors and numerous small businesses as subcontractors for specialized services and supplies.
Oversight & Accountability
The Department of the Navy's contracting process, including the use of full and open competition, is subject to oversight by various DoD entities and potentially congressional committees to ensure fairness and fiscal responsibility.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee contract type.
- Long contract duration.
- Potential for unforeseen technical challenges during maintenance.
- Dependency on a single contractor for critical maintenance.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.5 million to METRO MACHINE CORP.. USS EISENHOWER (CVN 69) FY25 PIA
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 $122.5 million.
What is the period of performance?
Start: 2024-11-12. End: 2026-03-27.
What is the historical cost performance of Metro Machine Corp. on similar cost-plus-fixed-fee contracts?
Analyzing Metro Machine Corp.'s past performance on cost-plus-fixed-fee contracts is crucial. Reviewing their track record for cost overruns, adherence to budgets, and efficiency in similar naval maintenance projects will provide insight into the likelihood of this contract staying within projected costs and the overall value for taxpayers.
How does the awarded amount compare to the government's independent cost estimate for this maintenance period?
Comparing the $122.5 million award to the government's independent cost estimate (ICE) is essential for assessing value. If the award is significantly higher than the ICE, it could indicate an issue with the bidding process or an underestimation by the government. Conversely, a lower award suggests successful competition and potential savings.
What specific maintenance tasks are included, and are there any potential risks associated with their execution?
Understanding the scope of work is key to assessing risk. Complex tasks like hull repairs, propulsion system overhauls, or combat system upgrades carry inherent risks of unforeseen issues, delays, and cost increases. A detailed breakdown of tasks and associated risk mitigation plans would offer greater clarity on the contract's effectiveness.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002422R4100
Pricing Type: COST PLUS FIXED FEE (U)
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: $123,082,536
Exercised Options: $123,082,536
Current Obligation: $122,486,696
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $51,146,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002423D4100
IDV Type: IDC
Timeline
Start Date: 2024-11-12
Current End Date: 2026-03-27
Potential End Date: 2026-03-27 00:00:00
Last Modified: 2026-03-10
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