Navy Awards BAE Systems $45.5M for USS Sterett Ship Repair

Contract Overview

Contract Amount: $45,501,662 ($45.5M)

Contractor: BAE Systems Maritime Solutions SAN Diego Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-31

End Date: 2019-06-28

Contract Duration: 301 days

Daily Burn Rate: $151.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS STERETT (DDG 104) FY18 DSRA TYCOM, SPAWAR, AND NAVSEA FUNDED WORK ITEMS, SSP: TPPC-DDG104-SWRMC19-CN01

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: USS STERETT (DDG 104) FY18 DSRA TYCOM, SPAWAR, AND NAVSEA FUNDED WORK ITEMS, SSP: TPPC-DDG104-SWRMC19-CN01 Key points: 1. Contract awarded to BAE Systems Maritime Solutions for FY18 work on USS Sterett (DDG 104). 2. The contract value is $45,501,662, funded by TYCOM, SPAWAR, and NAVSEA. 3. Work includes ship repair and maintenance, falling under the Ship Building and Repairing NAICS code. 4. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $45.5M for ship repair services appears reasonable given the scope of work for a DDG-class destroyer. Benchmarking against similar complex naval vessel maintenance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and ensure the best value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary naval maintenance and repair services.

Public Impact

Ensures readiness of a key naval asset, the USS Sterett (DDG 104). Supports maritime security and national defense capabilities. Contributes to the shipbuilding and repair industry in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Full and open competition utilized.
  • Firm Fixed Price contract type.
  • Clear funding sources identified.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, specifically for naval vessels. Spending in this sector is critical for maintaining fleet readiness and national security, with significant government investment annually.

Small Business Impact

The data indicates the award went to BAE Systems Maritime Solutions, a large business. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular contract.

Oversight & Accountability

The contract was awarded by the Department of the Navy, with funding from TYCOM, SPAWAR, and NAVSEA, suggesting established oversight mechanisms. The firm fixed price contract type also provides cost control.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns if unforeseen issues arise during repairs.
  • Dependence on a single large contractor for critical maintenance.
  • Scope creep could increase the final cost beyond the initial award.

Tags

ship-building-and-repairing, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. USS STERETT (DDG 104) FY18 DSRA TYCOM, SPAWAR, AND NAVSEA FUNDED WORK ITEMS, SSP: TPPC-DDG104-SWRMC19-CN01

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 $45.5 million.

What is the period of performance?

Start: 2018-08-31. End: 2019-06-28.

What specific repair and maintenance tasks are included in this contract?

The contract details 'FY18 DSRA TYCOM, SPAWAR, AND NAVSEA FUNDED WORK ITEMS' for the USS STERETT (DDG 104). While the specific tasks are not itemized in the provided data, DSRA typically refers to Depot Source of Repair and Alteration, encompassing major maintenance, upgrades, and repairs performed at a naval depot.

What is the historical performance of BAE Systems Maritime Solutions on similar naval contracts?

Assessing BAE Systems Maritime Solutions' past performance on comparable contracts with the Department of the Navy is crucial for evaluating risk. Reviewing their track record for on-time delivery, quality of work, and adherence to budget on previous ship repair and maintenance projects would provide valuable insight into their reliability for this contract.

How does the $45.5M contract value compare to the typical cost of similar DDG-class destroyer maintenance cycles?

To determine the value, this $45.5M contract should be benchmarked against the average costs for similar Depot Source of Repair and Alteration (DSRA) work on DDG-class destroyers. Factors like the specific maintenance requirements, shipyard location, and prevailing labor rates influence these costs. A comparative analysis would reveal if this award represents a fair market price.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTNON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R4401

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2205 E BELT ST, SAN DIEGO, CA, 92113

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $46,430,501

Exercised Options: $45,501,662

Current Obligation: $45,501,662

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002416D4416

IDV Type: IDC

Timeline

Start Date: 2018-08-31

Current End Date: 2019-06-28

Potential End Date: 2019-06-28 00:00:00

Last Modified: 2020-01-17

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