Navy Awards $41.5M for USS Dewey Ship Repair to BAE Systems
Contract Overview
Contract Amount: $41,454,796 ($41.5M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-14
End Date: 2019-11-29
Contract Duration: 350 days
Daily Burn Rate: $118.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C450 - USS DEWEY (DDG 105) FY19 DSRA TYCOM NAVSEA SPAWAR
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92113
Plain-Language Summary
Department of Defense obligated $41.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: C450 - USS DEWEY (DDG 105) FY19 DSRA TYCOM NAVSEA SPAWAR Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship repair services. 2. The award represents a significant investment in naval readiness and maintenance. 3. Competition method was full and open, suggesting a competitive bidding process. 4. The sector is dominated by large, specialized shipbuilding and repair firms.
Value Assessment
Rating: good
The award amount of $41.5M for ship repair appears reasonable given the scope of work for a DDG-class destroyer. Benchmarking against similar complex naval vessel maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are utilized for essential naval maintenance, ensuring the operational readiness of critical defense assets.
Public Impact
Ensures the operational readiness of the USS Dewey (DDG 105), a key asset in the U.S. Navy's fleet. Supports jobs and economic activity within the shipbuilding and repair sector, particularly in California. Demonstrates the government's commitment to maintaining its naval capabilities through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex ship repair projects.
- Dependence on a single contractor for a specific vessel's extensive repairs.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type helps control costs.
- Supports critical naval readiness.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is characterized by high technical expertise and significant capital investment. Spending in this area is crucial for national defense and maritime security.
Small Business Impact
While the prime contractor is BAE Systems, a large defense firm, the contract details do not specify any subcontracting goals for small businesses. Further investigation may be needed to assess small business participation.
Oversight & Accountability
The Department of the Navy, through NAVSEA and SPAWAR, is responsible for overseeing this contract. Standard oversight mechanisms for defense contracts, including performance monitoring and quality assurance, are expected to be in place.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded under full and open competition.
- Firm Fixed Price contract type.
- Supports critical naval asset readiness.
- Significant investment in defense infrastructure.
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 $41.5 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. C450 - USS DEWEY (DDG 105) FY19 DSRA TYCOM NAVSEA SPAWAR
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 $41.5 million.
What is the period of performance?
Start: 2018-12-14. End: 2019-11-29.
What specific repair and maintenance tasks are included in this $41.5M contract to ensure value for money?
The contract likely encompasses a range of critical maintenance and repair activities for the USS Dewey (DDG 105), potentially including hull maintenance, propulsion system servicing, combat system upgrades, and habitability improvements. A detailed statement of work would outline the specific tasks, ensuring that the $41.5M award is aligned with the necessary scope to maintain the vessel's operational readiness and extend its service life.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential schedule delays due to unforeseen technical issues during complex ship repairs, and cost overruns if the firm fixed-price contract doesn't adequately account for all eventualities. Mitigation strategies likely involve robust project management by BAE Systems, close oversight from the Navy, and contingency planning for unexpected challenges. The firm fixed-price nature itself is a risk mitigation tool against uncontrolled cost growth.
How does this contract contribute to the overall effectiveness and readiness of the U.S. Navy's fleet?
This contract is vital for maintaining the operational effectiveness of the USS Dewey, a critical component of the Navy's surface combatant fleet. By ensuring the ship is properly maintained and repaired, it enhances its readiness to deploy for national security missions, deter adversaries, and respond to global challenges, thereby contributing directly to the overall combat capability and strategic posture of the U.S. Navy.
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: 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: $44,895,808
Exercised Options: $41,454,796
Current Obligation: $41,454,796
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: 2018-12-14
Current End Date: 2019-11-29
Potential End Date: 2019-11-29 00:00:00
Last Modified: 2020-03-02
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