Navy awards $42.7M for DDG-113, DDG-104, CG-59 maintenance, with full and open competition

Contract Overview

Contract Amount: $42,699,208 ($42.7M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2021-05-10

End Date: 2022-03-14

Contract Duration: 308 days

Daily Burn Rate: $138.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY21 VERTICAL REQUIREMENT FOR USS JOHN FINN DDG-113, USS STERETT DDG-104, USS PRINCETON CG-59 REQUIREMENT ONE: USS JOHN FINN DDG-113, USS STERETT DDG-104 REQUIREMENT TWO: USS PRINCETON CG-59

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: FY21 VERTICAL REQUIREMENT FOR USS JOHN FINN DDG-113, USS STERETT DDG-104, USS PRINCETON CG-59 REQUIREMENT ONE: USS JOHN FINN DDG-113, USS STERETT DDG-104 REQUIREMENT TWO: USS PRINCETON CG-59 Key points: 1. Spending focuses on critical naval vessel maintenance for three ships. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to the complexity of ship maintenance and potential delays. 4. The sector is dominated by a few large shipbuilders, but this contract utilized open competition.

Value Assessment

Rating: good

The award amount of $42.7M for a 308-day period appears reasonable given the scope of maintenance for three naval vessels. Benchmarking against similar complex ship 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 multiple bidders were considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Full and open competition aims to secure favorable pricing, maximizing taxpayer value for essential defense services.

Public Impact

Ensures operational readiness of key naval assets (DDG-113, DDG-104, CG-59). Supports the shipbuilding and repair industry, contributing to skilled labor employment. Maintains the Navy's strategic capabilities through upkeep of its fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise.
Dependence on the availability of specialized parts and skilled labor.
Schedule delays impacting operational readiness.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type limits cost uncertainty.
Clear definition of requirements for specific vessels.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, a critical component of national defense. Spending benchmarks for similar naval vessel maintenance contracts vary widely based on ship class and scope of work.

Small Business Impact

While the primary contractor is a large entity, the use of full and open competition could potentially allow for subcontracting opportunities for smaller businesses specializing in specific repair or supply needs.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The firm fixed price contract and defined delivery order period provide a framework for accountability.

Related Government Programs

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

Risk Flags

Potential for schedule slippage impacting operational readiness.
Risk of unforeseen maintenance requirements increasing total cost.
Dependence on specialized labor and parts availability.
Complexity of integrating repairs across multiple vessels.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. FY21 VERTICAL REQUIREMENT FOR USS JOHN FINN DDG-113, USS STERETT DDG-104, USS PRINCETON CG-59 REQUIREMENT ONE: USS JOHN FINN DDG-113, USS STERETT DDG-104 REQUIREMENT TWO: USS PRINCETON CG-59

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 $42.7 million.

What is the period of performance?

Start: 2021-05-10. End: 2022-03-14.

What is the historical cost performance for maintenance on these specific ship classes?

Analyzing historical maintenance costs for USS John Finn (DDG-113), USS Sterett (DDG-104), and USS Princeton (CG-59) would provide valuable context. Understanding past expenditures, including any cost overruns or savings, can help assess the reasonableness of the current $42.7M award and identify potential trends or recurring issues that might impact future budgets.

What are the specific risks associated with the maintenance of these particular vessels?

The primary risks involve the potential for unforeseen structural issues, aging component failures, or the need for specialized parts that may have long lead times. The complexity of modern naval vessels means that unexpected problems can arise during maintenance, potentially leading to schedule delays and increased costs beyond the initial contract value.

How effectively does this contract contribute to the overall operational readiness of the fleet?

This contract directly contributes to fleet readiness by ensuring three key vessels are maintained and operational. Timely completion of maintenance prevents these ships from being sidelined, allowing them to fulfill their assigned missions. The effectiveness is measured by the successful completion of all required maintenance within the specified timeframe and budget.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $42,699,208

Exercised Options: $42,699,208

Current Obligation: $42,699,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002416D4418

IDV Type: IDC

Timeline