Navy's $71.3M Dry Docking for USS Curtis Wilbur Awarded to National Steel and Shipbuilding Company
Contract Overview
Contract Amount: $71,285,977 ($71.3M)
Contractor: National Steel and Shipbuilding Company
Awarding Agency: Department of Defense
Start Date: 2022-08-08
End Date: 2023-11-03
Contract Duration: 452 days
Daily Burn Rate: $157.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C420A USS CURTIS WILBUR (DDG-54) FY22 DRY DOCKING SELECTED RESTRICTED AVAILABILITY TYCOM BASE WORK ITEMS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $71.3 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: C420A USS CURTIS WILBUR (DDG-54) FY22 DRY DOCKING SELECTED RESTRICTED AVAILABILITY TYCOM BASE WORK ITEMS Key points: 1. Significant contract for ship maintenance and repair. 2. Competition was full and open, suggesting market availability. 3. Risk of cost overruns or schedule delays inherent in complex ship repair. 4. Sector is dominated by a few large shipbuilders.
Value Assessment
Rating: good
The contract value of $71.3M for a 452-day availability appears reasonable given the complexity of naval vessel maintenance. Benchmarking against similar DDG availabilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust bidding process. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive award process aims to minimize taxpayer cost for essential naval maintenance.
Public Impact
Ensures readiness of a key naval asset, the USS Curtis Wilbur. Supports jobs in the shipbuilding and repair industry. Impacts the operational capability of the US Navy's Pacific fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex repair projects.
- Dependence on a single contractor for execution.
- Schedule slippage impacting fleet readiness.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Contract duration is clearly defined.
Sector Analysis
Ship repair and maintenance is a critical but specialized sector within defense spending. Costs can vary significantly based on vessel type, age, and required work scope. This contract falls within typical spending for major naval availabilities.
Small Business Impact
While the prime contractor is a large entity, subcontracts for specialized services or materials could potentially involve small businesses, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of the Navy's oversight is crucial for managing the execution of this complex availability, ensuring adherence to schedule, budget, and quality standards.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Complexity of ship repair can lead to unforeseen issues.
- Potential for schedule delays impacting operational readiness.
- Reliance on a single large contractor.
- Firm Fixed Price contract may not account for all potential emergent work.
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.3 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. C420A USS CURTIS WILBUR (DDG-54) FY22 DRY DOCKING SELECTED RESTRICTED AVAILABILITY TYCOM BASE WORK ITEMS
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 $71.3 million.
What is the period of performance?
Start: 2022-08-08. End: 2023-11-03.
What is the historical cost performance of National Steel and Shipbuilding Company on similar naval availabilities?
Historical performance data for National Steel and Shipbuilding Company on comparable DDG availabilities would be valuable. Analyzing past projects for cost overruns, schedule adherence, and quality issues can provide insights into their execution capabilities and inform future contract negotiations and risk assessments.
How does the awarded price compare to the government's independent cost estimate for this availability?
Comparing the awarded price to the government's independent cost estimate (ICE) is essential for validating the fairness of the price. A significant variance could indicate issues with the bidding process, the estimate itself, or the contractor's pricing strategy, warranting further investigation.
What are the key performance metrics and penalties included in the contract to ensure timely and quality completion?
Understanding the contract's performance metrics and associated penalties is vital for assessing accountability. Specific clauses related to on-time delivery, quality of work, and adherence to specifications, along with defined penalties for non-compliance, are critical for ensuring the contractor meets obligations and taxpayers receive value.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N5523621R0010
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2798 E 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: $72,197,130
Exercised Options: $71,285,977
Current Obligation: $71,285,977
Actual Outlays: $56,339,573
Subaward Activity
Number of Subawards: 195
Total Subaward Amount: $9,067,057
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-08
Current End Date: 2023-11-03
Potential End Date: 2023-11-03 00:00:00
Last Modified: 2025-03-04
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