DoD Awards $237M for ARCO SERE Service Craft Overhaul to BAE Systems
Contract Overview
Contract Amount: $23,700,125 ($23.7M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-14
End Date: 2008-06-20
Contract Duration: 280 days
Daily Burn Rate: $84.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: ARCO (ARDM-5)SEREVICE CRAFT OVERHAUL.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $23.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: ARCO (ARDM-5)SEREVICE CRAFT OVERHAUL. Key points: 1. The contract value is $237 million, awarded to a single large business. 2. BAE Systems Maritime Solutions is the sole awardee, indicating potential limited competition. 3. The contract falls under Ship Building and Repairing, a critical defense sector. 4. Awarded in 2007, the project duration was 280 days.
Value Assessment
Rating: fair
The award amount of $237 million for a service craft overhaul is substantial. Benchmarking against similar contracts is difficult without more specific details on the scope of work and vessel type.
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, only one award was made, which might warrant further investigation into the bidding landscape.
Taxpayer Impact: Taxpayer funds are utilized for defense readiness and maintenance, ensuring operational capability of naval assets.
Public Impact
Ensures readiness of critical naval assets through essential maintenance. Supports the defense industrial base and associated jobs. Contributes to the operational effectiveness of the U.S. Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite full and open competition.
- Lack of small business participation noted.
Positive Signals
- Addresses critical maintenance needs for naval vessels.
- Awarded through a competitive process.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is vital for maintaining naval fleet readiness. Spending in this sector can fluctuate based on modernization needs and operational demands.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as the 'sb' field is false. Opportunities for small business subcontracting were not explicitly detailed.
Oversight & Accountability
The Department of the Navy managed this procurement. Oversight would typically involve contract performance monitoring and financial accountability to ensure funds are used effectively.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition despite full and open solicitation.
- No explicit small business participation.
- Concentration of award to a single large business.
- Historical data (award in 2007) may not reflect current market conditions.
Tags
ship-building-and-repairing, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. ARCO (ARDM-5)SEREVICE CRAFT OVERHAUL.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO 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 $23.7 million.
What is the period of performance?
Start: 2007-09-14. End: 2008-06-20.
What was the competitive landscape like during the bidding process, given the full and open competition but single award?
While the contract was advertised as full and open competition, the single award to BAE Systems suggests that either only one bid was received, or BAE Systems was the only compliant and best-value offer. Further analysis of the solicitation and bid responses would be needed to understand if other qualified bidders participated or if there were specific technical or cost factors that limited the field.
What is the risk associated with relying on a single large contractor for such a critical service craft overhaul?
The primary risk is potential over-reliance on a single contractor, which could lead to reduced leverage in future negotiations and potential price increases. It also concentrates risk; if BAE Systems faces performance issues or financial instability, it could significantly impact the Navy's maintenance schedule and operational readiness.
How effectively does this contract contribute to the overall value and readiness of the naval fleet?
This contract is crucial for maintaining the operational readiness of the Navy's service craft. By ensuring these vessels are properly overhauled, the contract directly supports the fleet's ability to perform its missions. The value is realized through extended vessel lifespan and reliable performance, though the specific cost-effectiveness relative to alternatives requires deeper analysis.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N5523607R0002
Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2205 E BELT ST, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,700,125
Exercised Options: $23,700,125
Current Obligation: $23,700,125
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-14
Current End Date: 2008-06-20
Potential End Date: 2008-06-20 00:00:00
Last Modified: 2008-09-23
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