Navy awards $2.8M contract for USS Normandy auxiliary systems, highlighting shipbuilding and repair needs

Contract Overview

Contract Amount: $2,846,702 ($2.8M)

Contractor: Auxiliary Systems Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2026-01-30

Contract Duration: 123 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS NORMANDY (CG-60) A5A1

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.8 million to AUXILIARY SYSTEMS INC for work described as: USS NORMANDY (CG-60) A5A1 Key points: 1. Contract focuses on critical auxiliary systems for a guided-missile cruiser, indicating ongoing maintenance and upgrade requirements. 2. The award to Auxiliary Systems Inc. suggests a competitive process for specialized naval repair services. 3. Fixed-price contract type aims to control costs for the Department of the Navy. 4. The duration of the delivery order points to a focused scope of work within a defined timeframe. 5. This contract aligns with broader defense spending on fleet readiness and modernization.

Value Assessment

Rating: good

The contract value of approximately $2.85 million for auxiliary systems on a guided-missile cruiser appears reasonable given the specialized nature of naval ship repair. Benchmarking against similar contracts for major system overhauls or repairs on vessels of this class would provide a more precise value assessment. However, the firm fixed-price structure suggests an expectation of cost control by the Navy. Without specific details on the scope of work, a direct per-unit cost comparison is difficult, but the overall award seems aligned with typical expenditures for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was broad, specific sources may have been excluded based on pre-qualification or other criteria. The presence of 4 bidders suggests a healthy level of competition for this specialized service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple bids, leading to better value for money.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of the USS Normandy (CG-60). Services delivered include the repair and maintenance of critical auxiliary systems essential for ship functionality. The geographic impact is centered around naval shipyards and facilities where the USS Normandy is stationed or undergoing maintenance, likely in Virginia. Workforce implications include skilled labor in shipbuilding and repair trades, potentially supporting jobs in the maritime industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise with auxiliary systems beyond the initial assessment.
Dependence on the availability of specialized parts and skilled labor within the specified delivery timeframe.
Risk of schedule delays impacting fleet readiness if the contractor encounters significant technical challenges.

Positive Signals

Firm fixed-price contract helps mitigate cost overruns for the government.
Multiple bidders indicate a competitive market for these services, potentially leading to better quality and pricing.
The award is for a specific, defined scope of work, suggesting clear requirements and deliverables.

Sector Analysis

The shipbuilding and repair sector is a critical component of the defense industrial base, supporting naval fleet maintenance and modernization. This contract falls within the broader category of defense contracting, specifically focusing on ship maintenance and repair services. The market for these services is specialized, often requiring specific certifications, facilities, and expertise. Comparable spending benchmarks would involve analyzing other contracts for similar repair work on cruisers or destroyers within the Navy's fleet.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if subcontracting opportunities for small businesses are a requirement. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem within the maritime repair industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance and Repair
Guided-Missile Cruiser Modernization
Defense Logistics and Support Services
Shipbuilding and Repair Industry Support

Risk Flags

Potential for schedule slippage
Risk of unforeseen technical challenges
Supply chain dependencies for parts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.8 million to AUXILIARY SYSTEMS INC. USS NORMANDY (CG-60) A5A1

Who is the contractor on this award?

The obligated recipient is AUXILIARY SYSTEMS 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 $2.8 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-01-30.

What is the specific scope of work for the auxiliary systems repair on the USS Normandy?

The provided data indicates the contract is for 'AUXILIARY SYSTEMS INC' related to the 'USS NORMANDY (CG-60) A5A1'. While the exact scope of work is not detailed, 'auxiliary systems' on a naval vessel typically encompass a wide range of essential components beyond the main propulsion. This can include power generation and distribution, damage control systems, habitability systems (like HVAC and water), fire suppression, and various support systems crucial for the ship's operation and crew. The 'A5A1' designation might refer to a specific maintenance or repair classification. The firm fixed-price nature suggests a well-defined set of tasks, likely focused on specific repairs, overhauls, or component replacements rather than broad modernization efforts.

How does the $2.85 million award compare to historical spending on similar repairs for guided-missile cruisers?

Comparing the $2.85 million award requires access to historical contract data for similar guided-missile cruisers (CG class) and their auxiliary system repairs. Such repairs can vary significantly in cost based on the specific systems needing attention, the extent of the work (e.g., routine maintenance vs. major overhaul), and the age of the vessel. For instance, a contract for a mid-life upgrade involving extensive auxiliary system refurbishment could easily run into tens of millions of dollars. Conversely, a contract for targeted repairs on a specific system might be in the low millions. Without specific comparable contract details (scope, vessel class, year), it's challenging to definitively benchmark this $2.85 million award. However, it appears to be a moderate-sized award for specialized repair work, not a full-ship overhaul.

What are the key risks associated with this contract for the Department of the Navy?

Key risks for the Department of the Navy include potential schedule delays if the contractor encounters unforeseen technical challenges or supply chain disruptions for critical parts. Cost overruns are mitigated by the firm fixed-price structure, but scope creep could still occur if the initial assessment of auxiliary system issues is incomplete, potentially requiring contract modifications. Performance risk also exists, where the quality of the repair work might not meet naval standards, leading to future operational issues. Finally, there's a risk related to the contractor's capacity and expertise to handle the specific requirements of a naval vessel, especially under time constraints critical for fleet readiness.

What is the track record of Auxiliary Systems Inc. in performing similar naval repair contracts?

Information regarding the specific track record of 'AUXILIARY SYSTEMS INC' in performing similar naval repair contracts is not directly available in the provided data snippet. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past performance ratings, contract history, and any reported issues or successes related to this contractor and similar naval repair services. Understanding their experience with guided-missile cruisers and auxiliary systems specifically would be crucial for evaluating their capability and reliability for this $2.85 million award.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for cost and quality?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that the solicitation was initially broadly advertised, allowing all responsible sources to submit offers. However, certain sources were subsequently excluded. This exclusion could be based on various factors, such as pre-qualification requirements, specific technical capabilities, security clearances, or past performance issues. While it aims for broad competition, the exclusion of some potential bidders might slightly limit the overall competitive landscape compared to pure 'full and open' competition. Ideally, with 4 bidders, the competition should still drive reasonable pricing and encourage quality work to secure the contract, but the rationale behind the exclusions warrants consideration.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002421R4428

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 311 EAST 24TH STREET, NORFOLK, VA, 23504

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,846,702

Exercised Options: $2,846,702

Current Obligation: $2,846,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002422D4413

IDV Type: IDC

Timeline