Navy Awards $93.6M for USS Cole (DDG-67) FY26 Drydocking and Special Refueling Availability to BAE Systems

Contract Overview

Contract Amount: $93,560,001 ($93.6M)

Contractor: BAE Systems Maritime Solutions Norfolk Inc.

Awarding Agency: Department of Defense

Start Date: 2026-03-30

End Date: 2027-03-21

Contract Duration: 356 days

Daily Burn Rate: $262.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS COLE (DDG-67) FY26 DSRA

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $93.6 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS COLE (DDG-67) FY26 DSRA Key points: 1. Significant contract for a critical naval asset, the USS Cole. 2. BAE Systems, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract is for Drydocking and Special Refueling Availability (DSRA).

Value Assessment

Rating: fair

The award amount of $93.6M for a 356-day availability seems within a reasonable range for complex naval vessel maintenance. However, without specific details on the scope of work and comparison to similar DSRA contracts for Arleigh Burke-class destroyers, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential maintenance of a naval destroyer, ensuring its operational readiness. The competitive award process aims to secure the best value for the government.

Public Impact

Ensures the continued operational readiness of the USS Cole (DDG-67), a key asset in the U.S. Navy's fleet. Supports critical shipbuilding and repair infrastructure and workforce within the defense industrial base. The maintenance period is substantial, impacting the ship's availability for deployment. Highlights the ongoing need for complex maintenance on aging naval vessels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope of work for DSRA can be complex and prone to cost overruns if not managed tightly.
Long duration of the availability (356 days) increases potential for unforeseen issues.
Reliance on a single awardee for this critical availability.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type helps control costs.
BAE Systems has extensive experience in naval ship repair.

Sector Analysis

This contract falls within the Defense sector, specifically naval ship maintenance and repair. Spending benchmarks for similar availabilities on Arleigh Burke-class destroyers can vary significantly based on the specific maintenance requirements and shipyard location.

Small Business Impact

While the prime contractor is BAE Systems, a large entity, the contract may involve subcontracting opportunities for small businesses in areas such as specialized parts, labor, or support services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Robust oversight will be crucial to ensure the work is completed on time, within budget, and to the required specifications, especially given the complexity of a DSRA.

Related Government Programs

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

Risk Flags

Potential for scope creep during a long availability period.
Dependency on a single contractor for critical maintenance.
Complexity of integrating refueling operations with other maintenance tasks.
Risk of schedule delays impacting fleet readiness.
Ensuring consistent quality across all repair and maintenance activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.6 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS COLE (DDG-67) FY26 DSRA

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS NORFOLK 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 $93.6 million.

What is the period of performance?

Start: 2026-03-30. End: 2027-03-21.

What specific technical challenges or upgrades are included in this DSRA that justify the $93.6M cost and 356-day duration?

The Drydocking and Special Refueling Availability (DSRA) for the USS Cole likely encompasses a comprehensive overhaul, including hull maintenance, propulsion system servicing, and potentially the refueling of its nuclear reactor components if applicable to this class and specific availability. The duration suggests significant structural work, system upgrades, and extensive testing phases are planned to ensure the vessel's long-term operational capability and safety standards are met.

How does the pricing of this contract compare to historical DSRA contracts for similar Arleigh Burke-class destroyers, and what factors might explain any significant deviations?

Benchmarking this $93.6M contract requires comparison with previous DSRA awards for DDG-51 class destroyers, considering inflation, specific scope changes, and shipyard overhead rates. Deviations could stem from evolving maintenance requirements, increased complexity of systems requiring attention, or market conditions affecting labor and material costs. A detailed cost breakdown and scope comparison are necessary for accurate assessment.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure BAE Systems delivers the required maintenance effectively and efficiently?

The Department of the Navy likely employs stringent KPIs focusing on schedule adherence, quality of workmanship, safety compliance, and budget management. Oversight mechanisms would include regular progress reviews, technical inspections, independent government quality assurance representatives, and performance metrics tied to the firm-fixed-price contract. Effective communication channels and a clear change management process are also vital.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002421R4428

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 750 W BERKLEY AVE, NORFOLK, VA, 23523

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

Financial Breakdown

Contract Ceiling: $105,142,501

Exercised Options: $104,916,979

Current Obligation: $93,560,001

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002422D4400

IDV Type: IDC

Timeline