Navy awards $55M contract for USS Essex (LHD-2) ship repair to National Steel and Shipbuilding Company
Contract Overview
Contract Amount: $54,964,443 ($55.0M)
Contractor: National Steel and Shipbuilding Company
Awarding Agency: Department of Defense
Start Date: 2019-02-07
End Date: 2019-12-06
Contract Duration: 302 days
Daily Burn Rate: $182.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LHA/LHD CODE 420 RFP 0010 USS ESSEX (LHD-2) FY19 CNO
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $55.0 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: LHA/LHD CODE 420 RFP 0010 USS ESSEX (LHD-2) FY19 CNO Key points: 1. Contract awarded to National Steel and Shipbuilding Company for $54.96M. 2. The contract is for ship repair services for the USS Essex (LHD-2). 3. This falls under the Ship Building and Repairing sector. 4. The award was made under a full and open competition. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $54.96M for ship repair is substantial. Benchmarking against similar LHD repair contracts would be necessary to assess if this price is competitive, considering the specific scope of work and vessel class.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Ensures readiness of a key naval asset, the USS Essex (LHD-2). Supports the shipbuilding and repair industry, potentially creating jobs. Impacts naval operations and national security by maintaining fleet capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the scope of repair work.
- Potential for cost overruns if unforeseen issues arise during repair.
- Dependence on a single contractor for this specific vessel's repair.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Contract duration is clearly defined.
Sector Analysis
The Ship Building and Repairing sector is critical for maintaining naval fleet readiness. Spending in this sector can fluctuate based on fleet modernization needs and maintenance cycles. Benchmarking against historical repair costs for similar vessels is essential.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight would involve monitoring the execution of the repair work to ensure it meets specifications and stays within budget. The Department of the Navy is responsible for ensuring accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if additional repairs are identified.
- Contractor performance history and reliability.
- Availability of specialized parts and labor.
- Impact of unforeseen technical issues on schedule and cost.
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 $55.0 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. LHA/LHD CODE 420 RFP 0010 USS ESSEX (LHD-2) FY19 CNO
Who is the contractor on this award?
The obligated recipient is NATIONAL STEEL AND SHIPBUILDING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $55.0 million.
What is the period of performance?
Start: 2019-02-07. End: 2019-12-06.
What specific repair and maintenance tasks are included in this $55 million contract to ensure the USS Essex (LHD-2) is fully operational?
The contract details for the USS Essex (LHD-2) repair are not fully specified in the provided data. A comprehensive review of the Statement of Work (SOW) within the full contract documentation would be required to identify the precise tasks, including hull maintenance, system overhauls, equipment upgrades, and any scheduled inspections or certifications.
How does the $54.96 million cost compare to similar LHD repair contracts awarded by the Department of the Navy in recent years?
Without access to a database of comparable LHD repair contracts, a direct cost comparison is difficult. Factors such as the age of the vessel, the extent of required repairs, and market inflation rates significantly influence pricing. A detailed analysis of the scope of work against similar historical contracts is necessary for a robust assessment.
What measures are in place to ensure the quality of the repair work and the effective use of taxpayer funds throughout the contract duration?
The Department of the Navy's quality assurance personnel are responsible for overseeing the repair work to ensure it meets contractual specifications and standards. The Firm Fixed Price contract type provides a degree of cost certainty, and regular progress reviews and performance metrics help monitor effectiveness and prevent cost overruns.
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: N0002416R4401
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 2798 HARBOR DR, SAN DIEGO, CA, 92113
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: $54,964,443
Exercised Options: $54,964,443
Current Obligation: $54,964,443
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002416D4421
IDV Type: IDC
Timeline
Start Date: 2019-02-07
Current End Date: 2019-12-06
Potential End Date: 2019-12-06 00:00:00
Last Modified: 2020-04-10
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