DoD's $2.07M Ford Class Carrier Advanced Planning Award to Metro Machine Corp

Contract Overview

Contract Amount: $2,068,446 ($2.1M)

Contractor: Metro Machine Corp.

Awarding Agency: Department of Defense

Start Date: 2025-01-16

End Date: 2026-06-15

Contract Duration: 515 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: USS FORD FY25 PIA ADVANCED PLANNING AWARD

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.1 million to METRO MACHINE CORP. for work described as: USS FORD FY25 PIA ADVANCED PLANNING AWARD Key points: 1. Awarded to a single contractor, Metro Machine Corp., for advanced planning. 2. The contract is a Cost Plus Fixed Fee type, common in complex shipbuilding. 3. The contract duration is 515 days, indicating a significant planning phase. 4. The award falls under the Ship Building and Repairing NAICS code. 5. The contract is for the USS Ford FY25, a high-profile naval asset.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar advanced planning contracts for capital-intensive projects is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award type (Delivery Order) implies it might be part of a larger IDIQ or framework, which could influence price discovery.

Taxpayer Impact: The taxpayer impact is tied to ensuring the advanced planning phase for the USS Ford is cost-effective and sets the stage for efficient future construction and maintenance.

Public Impact

Ensures critical advanced planning for the advanced Ford-class aircraft carrier. Supports the U.S. Navy's shipbuilding and repair capabilities. Contributes to the readiness and modernization of the naval fleet. Potential impact on the skilled workforce in the shipbuilding sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Limited visibility into the specific deliverables of 'advanced planning'.
Potential for scope creep in complex shipbuilding projects.

Positive Signals

Awarded under full and open competition.
Supports a critical national defense asset (USS Ford).
Clear contract duration and delivery period.

Sector Analysis

This contract falls within the shipbuilding and repair sector, a capital-intensive industry with long project cycles. Spending benchmarks for advanced planning on naval vessels are typically high due to complexity and technological requirements.

Small Business Impact

While this specific award went to Metro Machine Corp., the broader shipbuilding and repair sector often involves a complex supply chain with opportunities for small businesses as subcontractors. Further analysis would be needed to determine if small businesses were involved in this specific award's execution.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the nature of Cost Plus Fixed Fee contracts and the complexity of naval shipbuilding, robust oversight mechanisms are crucial to ensure cost control and adherence to scope.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type.
Complexity of advanced planning for a capital-intensive naval asset.
Potential for scope creep in shipbuilding projects.
Reliance on a single contractor for this specific planning phase.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.1 million to METRO MACHINE CORP.. USS FORD FY25 PIA ADVANCED PLANNING 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 $2.1 million.

What is the period of performance?

Start: 2025-01-16. End: 2026-06-15.

How does the fixed fee component of this contract compare to industry standards for similar advanced planning services in naval shipbuilding?

Assessing the fixed fee requires benchmarking against comparable advanced planning contracts for naval vessels. Factors like the complexity of the USS Ford, the specific planning tasks, and the contractor's historical performance would influence a fair fee. Without detailed cost breakdowns, it's difficult to definitively state if it aligns with industry standards, but it's a key area for oversight.

What specific risks are associated with the 'advanced planning' phase for a vessel as complex as the USS Ford, and how are they mitigated by this contract?

Risks in advanced planning for the USS Ford include design changes, integration challenges with new technologies, and unforeseen technical hurdles. Mitigation strategies within this Cost Plus Fixed Fee contract likely involve detailed milestone reviews, rigorous technical oversight by the Navy, and clear change management protocols to control scope and cost impacts.

Beyond the initial award, what mechanisms are in place to ensure the long-term effectiveness and cost-efficiency of the USS Ford's lifecycle, considering this advanced planning award?

This advanced planning award is foundational. Long-term effectiveness and cost-efficiency will depend on subsequent phases, including construction, testing, and maintenance contracts. Robust program management, continuous performance monitoring, lessons learned integration from previous Ford-class vessels, and competitive follow-on procurements are essential to ensure the overall lifecycle value.

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: $2,068,446

Exercised Options: $2,068,446

Current Obligation: $2,068,446

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $739,621

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