Navy Awards $987M for USS Bush (CVN 77) FY25 CMAV Delivery Order to Metro Machine Corp
Contract Overview
Contract Amount: $9,868,013 ($9.9M)
Contractor: Metro Machine Corp.
Awarding Agency: Department of Defense
Start Date: 2024-12-17
End Date: 2026-04-24
Contract Duration: 493 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: USS BUSH (CVN 77) FY25 CMAV DELIVERY ORDER AWARD.
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to METRO MACHINE CORP. for work described as: USS BUSH (CVN 77) FY25 CMAV DELIVERY ORDER AWARD. Key points: 1. Significant contract value of $986.8 million for ship maintenance. 2. Awarded under full and open competition, indicating market availability. 3. Potential risk associated with complex naval vessel maintenance and extended duration. 4. Spending falls within the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee (CPFF) type, which allows for cost reimbursement plus a fixed fee. This structure can be effective for complex projects where final costs are uncertain, but it requires robust oversight to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple capable vendors could bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The $986.8 million award represents a significant taxpayer investment in maintaining a key naval asset, ensuring its operational readiness.
Public Impact
Ensures the operational readiness of a critical U.S. Navy aircraft carrier. Supports jobs in the shipbuilding and repair industry. Impacts national defense capabilities through fleet maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are possible with CPFF contracts.
- Long contract duration increases exposure to economic fluctuations.
- Potential for scope creep in complex maintenance projects.
Positive Signals
- Full and open competition drives better pricing.
- Award ensures critical asset readiness.
- Supports a key industrial base sector.
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is crucial for maintaining the U.S. Navy's fleet. Spending in this sector is often substantial due to the complexity and cost of naval vessels.
Small Business Impact
While the prime contractor is Metro Machine Corp., the contract details do not specify any subcontracting goals for small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Given the CPFF structure and long duration, rigorous monitoring of costs and performance will be essential to ensure accountability and prevent waste.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Schedule delays impacting operational readiness.
- Unforeseen technical challenges in complex systems.
- Potential for scope creep during maintenance.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to METRO MACHINE CORP.. USS BUSH (CVN 77) FY25 CMAV DELIVERY ORDER AWARD.
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 $9.9 million.
What is the period of performance?
Start: 2024-12-17. End: 2026-04-24.
What is the historical cost performance for similar CMAV maintenance on other aircraft carriers?
Analyzing historical data for similar CMAV maintenance on other Nimitz-class or Ford-class carriers would provide a benchmark for cost efficiency. This comparison can reveal if Metro Machine Corp.'s pricing is competitive and if the CPFF structure is being managed effectively to control expenditures against projected costs.
What are the specific risks associated with the scope of work for the USS Bush's CMAV maintenance?
The specific risks involve the complexity of maintaining an aircraft carrier's Combatant Maneuvering and Auxiliary Vessel (CMAV) systems. Potential issues include unforeseen structural damage, aging component failures, and integration challenges with updated systems, all of which could lead to schedule delays and cost overruns.
How effectively does the CPFF contract structure ensure value for taxpayer money in this context?
The CPFF structure aims to ensure value by covering necessary costs plus a fixed profit, incentivizing efficient completion. However, its effectiveness hinges on strong government oversight to scrutinize costs, prevent unnecessary expenditures, and ensure the fixed fee remains appropriate for the work performed and risks assumed.
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: $9,868,013
Exercised Options: $9,868,013
Current Obligation: $9,868,013
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,094,829
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: 2024-12-17
Current End Date: 2026-04-24
Potential End Date: 2026-04-24 00:00:00
Last Modified: 2025-12-22
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