DoD Awards BAE Systems $48.7M for USS Charleston (LCS-18) FY23 DSRA
Contract Overview
Contract Amount: $48,719,930 ($48.7M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-13
End Date: 2025-04-18
Contract Duration: 675 days
Daily Burn Rate: $72.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C420A, USS CHARLESTON (LCS-18) FY23 DSRA DELIVERY ORDER
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $48.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: C420A, USS CHARLESTON (LCS-18) FY23 DSRA DELIVERY ORDER Key points: 1. Contract awarded to BAE Systems Maritime Solutions for ship repair. 2. Significant value for a single delivery order, indicating complex repair needs. 3. Potential for future sustainment contracts for LCS class vessels. 4. Risk associated with long-term maintenance of specialized naval assets.
Value Assessment
Rating: good
The $48.7 million award for the USS Charleston DSRA appears reasonable given the scope of work for a major naval vessel. 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, suggesting a competitive bidding process that likely drove price discovery. The use of a Delivery Order under an existing contract structure is noted.
Taxpayer Impact: Taxpayer funds are utilized for essential naval readiness and maintenance, ensuring the operational capability of a key asset.
Public Impact
Ensures the operational readiness of a critical naval asset, the USS Charleston. Supports the shipbuilding and repair sector, contributing to the defense industrial base. Impacts the Navy's ability to maintain its fleet in the Pacific region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term sustainment costs for LCS class ships.
- Potential for scope creep in complex repair projects.
- Dependence on a single contractor for critical repairs.
Positive Signals
- Awarded under full and open competition.
- Supports naval readiness.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repair. Spending benchmarks for major naval vessel maintenance can vary significantly based on the vessel class and scope of work.
Small Business Impact
While the prime contractor is BAE Systems, the contract may offer subcontracting opportunities for small businesses in specialized areas of ship repair and maintenance.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this delivery order. Robust oversight is crucial to ensure the work is completed on time, within budget, and to specification.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long-term sustainment costs for LCS class.
- Potential for schedule delays in complex repairs.
- Dependence on specialized repair facilities.
- Ensuring full and open competition effectiveness.
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 $48.7 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. C420A, USS CHARLESTON (LCS-18) FY23 DSRA DELIVERY ORDER
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 $48.7 million.
What is the period of performance?
Start: 2023-06-13. End: 2025-04-18.
What is the projected long-term cost of maintaining the LCS class fleet, and how does this DSRA fit into that overall budget?
The long-term cost of maintaining the LCS class fleet is a significant concern for the Navy, given the class's operational history and evolving maintenance requirements. This $48.7 million DSRA represents a substantial but singular investment for a specific vessel's major repair. Understanding how this fits into the broader sustainment strategy and budget for the entire LCS class is crucial for fiscal planning and assessing overall value.
What are the key performance indicators (KPIs) being tracked for this contract to ensure successful completion and taxpayer value?
Key performance indicators for this contract likely include adherence to the schedule (delivery by April 2025), meeting technical specifications for the Drydocking and Special Refit Availability (DSRA), and maintaining cost control within the firm fixed price. The Navy will monitor progress through regular reporting, inspections, and potentially performance-based metrics related to the quality and completeness of the repairs.
How does the competition for this specific DSRA compare to typical competition levels for similar naval repair contracts, and what does this imply for future pricing?
The fact that this contract was awarded under 'full and open competition' is a positive indicator for price discovery. However, the specific nature of a DSRA for a particular hull (LCS-18) might limit the number of highly qualified bidders. Comparing the number of bids received and the final award price against benchmarks for similar complex naval repair contracts would reveal if the competition was robust enough to ensure optimal taxpayer 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002417R4325
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 2205 E BELT ST, SAN DIEGO, CA, 92113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,719,930
Exercised Options: $48,719,930
Current Obligation: $48,719,930
Actual Outlays: $11,013,683
Subaward Activity
Number of Subawards: 223
Total Subaward Amount: $11,763,252
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002418D4325
IDV Type: IDC
Timeline
Start Date: 2023-06-13
Current End Date: 2025-04-18
Potential End Date: 2025-04-18 00:00:00
Last Modified: 2025-04-18
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