DoD awards $34.7M for USS Mobile Bay (CG-53) Ship Repair, BAE Systems wins contract
Contract Overview
Contract Amount: $34,766,272 ($34.8M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2019-11-06
End Date: 2020-11-25
Contract Duration: 385 days
Daily Burn Rate: $90.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C440 USS MOBILE BAY (CG-53) FY20 SRA TPPC-CG53-SWRMC20-CNO1
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $34.8 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: C440 USS MOBILE BAY (CG-53) FY20 SRA TPPC-CG53-SWRMC20-CNO1 Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship repair services. 2. Full and open competition was utilized for this contract. 3. The contract value is $34.7 million. 4. This falls under the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract value of $34.7 million for ship repair appears reasonable given the scope of work for a vessel like the USS Mobile Bay. Benchmarking against similar complex naval vessel repair 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 a robust price discovery process. This method generally leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the essential maintenance and repair services provided to the USS Mobile Bay.
Public Impact
Ensures readiness of a key naval asset, the USS Mobile Bay. Supports critical shipbuilding and repair infrastructure and workforce. Maintains the operational capability of the U.S. Navy fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex ship repair.
- Dependence on a single contractor for specific specialized repairs.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost risk.
- Contract supports a critical defense asset.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repair. Spending in this area is crucial for maintaining naval fleet readiness and involves specialized, high-value services.
Small Business Impact
While BAE Systems is a large prime contractor, the contract may involve subcontracting opportunities for small businesses in specialized areas of ship repair and maintenance, though this is not explicitly detailed.
Oversight & Accountability
The Department of the Navy's contracting process, including the use of full and open competition and firm fixed-price contracts, provides a degree of oversight. Further review of performance metrics and post-award audits would enhance accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep in complex repair projects.
- Reliance on a single awardee for critical services.
- Need for robust government oversight during execution.
- Complexity of modern naval vessel repair.
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 $34.8 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. C440 USS MOBILE BAY (CG-53) FY20 SRA TPPC-CG53-SWRMC20-CNO1
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 $34.8 million.
What is the period of performance?
Start: 2019-11-06. End: 2020-11-25.
What is the historical cost performance of BAE Systems Maritime Solutions on similar naval repair contracts?
Analyzing BAE Systems' past performance on comparable naval repair contracts is crucial for assessing future value. A review of their track record, including any cost overruns or schedule delays on previous projects, would provide insights into their reliability and efficiency. This historical data can inform whether the current contract's pricing is competitive and if potential risks are adequately mitigated.
Are there any identified risks associated with the specific repair requirements for the USS Mobile Bay (CG-53)?
The specific repair requirements for the USS Mobile Bay (CG-53) could introduce unique risks, such as unforeseen structural issues, complex system integration challenges, or the need for specialized expertise not readily available. A thorough technical assessment of the scope of work, including any unique maintenance needs or upgrades, is necessary to identify and mitigate these potential risks effectively.
How does the firm fixed price contract structure impact the effectiveness of this repair award?
A firm fixed price contract structure is intended to enhance effectiveness by placing the cost risk on the contractor, incentivizing efficient performance and timely completion. This structure helps control overall project costs for the government. However, it requires clear and comprehensive contract specifications to avoid disputes and ensure all necessary work is performed to standard.
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: 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: $34,817,961
Exercised Options: $34,766,272
Current Obligation: $34,766,272
Actual Outlays: $14,795,360
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: 2019-11-06
Current End Date: 2020-11-25
Potential End Date: 2020-11-25 00:00:00
Last Modified: 2021-01-22
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