Navy Awards BAE Systems $7.7M for USS Kearsarge Maintenance, Focusing on Ship Building and Repair
Contract Overview
Contract Amount: $7,733,910 ($7.7M)
Contractor: BAE Systems Maritime Solutions Norfolk Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-15
End Date: 2026-01-30
Contract Duration: 46 days
Daily Burn Rate: $168.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Ship Building and Repair
Official Description: USS KEARSARGE (LHD-3) P5A2 N0002422D4406/ N5005426FL002
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC. for work described as: USS KEARSARGE (LHD-3) P5A2 N0002422D4406/ N5005426FL002 Key points: 1. The contract is for maintenance and repair services for the USS Kearsarge (LHD-3). 2. BAE Systems Maritime Solutions is the sole awardee, indicating a specific capability or existing relationship. 3. The contract value is $7.7 million, with a duration of 46 days. 4. The primary sector is Ship Building and Repair, a critical area for naval readiness.
Value Assessment
Rating: good
The contract value of $7.7 million for a 46-day period appears reasonable for specialized ship maintenance. Benchmarking against similar LHD maintenance contracts would provide a more precise assessment of 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. This method is generally expected to yield fair pricing, though specific details of the bidding outcomes are not provided.
Taxpayer Impact: The spending supports essential naval readiness, ensuring the operational capability of a key asset, which indirectly benefits taxpayers through national security.
Public Impact
Ensures the operational readiness of a major naval vessel, contributing to national defense. Supports specialized jobs in the maritime repair and shipbuilding industry. The contract's fixed-price nature provides cost certainty for the government. Maintenance activities are crucial for extending the service life of naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited duration of the award period.
- Potential for follow-on work not explicitly stated.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost predictability.
- Supports critical naval infrastructure.
Sector Analysis
The Ship Building and Repair sector is vital for maintaining the U.S. Navy's fleet. Spending in this area is directly tied to national security and the operational readiness of naval assets. Benchmarks for similar LHD maintenance contracts would be useful for a more granular assessment.
Small Business Impact
While the awardee is BAE Systems, a large corporation, the nature of specialized ship repair often involves a complex supply chain. It is possible that small businesses could be subcontracted for specific components or services, though this is not detailed in the provided data.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability for the funds expended.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is relatively short.
- Specific scope of work details are limited.
- Potential for cost overruns if unforeseen issues arise.
- Reliance on a single awardee for critical 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 $7.7 million to BAE SYSTEMS MARITIME SOLUTIONS NORFOLK INC.. USS KEARSARGE (LHD-3) P5A2 N0002422D4406/ N5005426FL002
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 $7.7 million.
What is the period of performance?
Start: 2025-12-15. End: 2026-01-30.
What is the specific scope of work covered by this $7.7 million contract for the USS Kearsarge?
The provided data indicates the contract is for maintenance and repair services for the USS Kearsarge (LHD-3). However, the precise details of the scope of work, such as specific systems to be serviced, parts to be replaced, or types of repairs, are not elaborated upon. Further documentation would be needed to understand the full extent of the maintenance activities.
What are the key performance indicators (KPIs) for this contract to ensure successful completion and taxpayer value?
Key performance indicators for this contract would likely include timely completion within the 46-day period, adherence to the firm fixed price, and successful execution of all specified maintenance and repair tasks. Meeting quality standards for the repairs and ensuring the vessel's systems are fully functional post-maintenance are also critical. The Department of the Navy's quality assurance personnel would monitor these aspects.
How does the pricing of this contract compare to historical maintenance costs for similar amphibious assault ships?
Without access to historical cost data for similar LHD maintenance contracts, a direct comparison is not possible. The $7.7 million award for a 46-day period appears reasonable on its face for specialized naval vessel maintenance. A comprehensive analysis would require benchmarking against contracts for other LHD-class ships or comparable vessels undergoing similar repair cycles.
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: $7,733,910
Exercised Options: $7,733,910
Current Obligation: $7,733,910
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002422D4406
IDV Type: IDC
Timeline
Start Date: 2025-12-15
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2026-01-08
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