Navy awards $33.6M for USS Manchester availability, with 4 bidders competing for the shipbuilding repair contract

Contract Overview

Contract Amount: $33,583,482 ($33.6M)

Contractor: National Steel and Shipbuilding Company

Awarding Agency: Department of Defense

Start Date: 2024-04-14

End Date: 2026-02-27

Contract Duration: 684 days

Daily Burn Rate: $49.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CODE 420A, USS MANCHESTER (LCS-14) FISCAL YEAR 2025, SELECTED RESTRICTED AVAILABILITY, SSP: TPPC-LCS14-SSSD25-CN01, DELIVERY ORDER

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to NATIONAL STEEL AND SHIPBUILDING COMPANY for work described as: CODE 420A, USS MANCHESTER (LCS-14) FISCAL YEAR 2025, SELECTED RESTRICTED AVAILABILITY, SSP: TPPC-LCS14-SSSD25-CN01, DELIVERY ORDER Key points: 1. The contract value represents a significant investment in maintaining naval readiness. 2. Competition among four bidders suggests a dynamic market for specialized shipbuilding and repair services. 3. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 4. This award is part of broader efforts to ensure the operational availability of the Littoral Combat Ship (LCS) class. 5. The duration of the availability period indicates a comprehensive maintenance and repair scope.

Value Assessment

Rating: good

The contract value of approximately $33.6 million for a selected restricted availability for the USS Manchester (LCS-14) appears reasonable given the specialized nature of naval vessel maintenance. Benchmarking against similar availability contracts for LCS-class ships would provide a more precise assessment, but the firm-fixed-price structure and the competitive bidding process suggest an effort to achieve value. The scope of work, including availability and repair, typically involves significant labor and material costs, making this price point plausible within the defense shipbuilding sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. The presence of multiple bidders indicates a healthy level of competition for this specialized shipbuilding and repair service. This competitive environment is crucial for ensuring that the Department of the Navy receives fair pricing and high-quality services. The selection of a firm-fixed-price contract further incentivizes the contractor to manage costs effectively.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among defense contractors.

Public Impact

Naval readiness and operational capability of the USS Manchester (LCS-14) are directly enhanced. The shipbuilding and repair sector in California benefits from this contract award. Skilled labor in shipbuilding and repair trades will be utilized for the duration of the contract. The U.S. Navy's fleet modernization and maintenance programs are supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repair issues arise beyond the scope of the firm-fixed-price contract.
Dependence on a single contractor for critical maintenance could pose supply chain risks.
Ensuring timely completion within the specified duration is crucial for fleet deployment schedules.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The award supports the operational readiness of a key naval asset.

Sector Analysis

The shipbuilding and repair sector is a critical component of national defense, involving complex engineering, specialized labor, and significant capital investment. This contract falls within the broader category of naval vessel maintenance and repair, a market characterized by high barriers to entry and a limited number of qualified contractors. Spending in this sector is often driven by fleet modernization, maintenance schedules, and geopolitical demands. Comparable spending benchmarks would typically be found in other availability contracts for similar vessel classes within the Department of Defense.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, National Steel and Shipbuilding Company, is a large entity, the contract may present subcontracting opportunities for small businesses within the shipbuilding and repair supply chain. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small business vendors for specialized components or services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers responsible for fleet readiness and maintenance. Accountability measures are embedded in the firm-fixed-price contract terms, which stipulate specific deliverables and timelines. Transparency is facilitated through contract award announcements and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Littoral Combat Ship (LCS) Program
Naval Ship Maintenance and Repair Contracts
Defense Shipbuilding and Repair Industry
Department of the Navy Ship Availability Contracts

Risk Flags

Potential for scope creep if unforeseen issues require additional work beyond the initial contract.
Dependence on contractor's specialized workforce and supply chain for timely completion.
Risk of schedule delays impacting fleet deployment readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to NATIONAL STEEL AND SHIPBUILDING COMPANY. CODE 420A, USS MANCHESTER (LCS-14) FISCAL YEAR 2025, SELECTED RESTRICTED AVAILABILITY, SSP: TPPC-LCS14-SSSD25-CN01, DELIVERY ORDER

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 $33.6 million.

What is the period of performance?

Start: 2024-04-14. End: 2026-02-27.

What is the track record of National Steel and Shipbuilding Company in fulfilling similar naval maintenance contracts?

National Steel and Shipbuilding Company (NASSCO) has a long history of shipbuilding and repair for the U.S. Navy, including experience with various classes of vessels. They have previously been awarded contracts for ship maintenance, overhaul, and construction. Specific to LCS-class ships, NASSCO has been involved in both new construction and post-delivery support. A detailed review of their past performance on similar availability contracts, including on-time delivery, adherence to budget, and quality of work, would be necessary for a comprehensive assessment. Past performance data, often available through government contracting databases or agency performance reports, would provide insights into their reliability and capability in executing complex maintenance tasks.

How does the awarded amount compare to historical spending on USS Manchester (LCS-14) availability or similar LCS-class ship maintenance?

The awarded amount of approximately $33.6 million for the USS Manchester's fiscal year 2025 selected restricted availability needs to be benchmarked against historical data for similar LCS-class maintenance. The Littoral Combat Ship program has seen various maintenance and modernization efforts, with costs potentially fluctuating based on the scope of work, the specific availability period (e.g., major overhaul vs. routine maintenance), and market conditions at the time of award. Comparing this figure to previous availability contracts for LCS 1 through LCS 13, or even later hulls if data is available, would reveal if this represents an increase, decrease, or stable trend in maintenance costs. Factors such as the number of bidders and the contract type (firm-fixed-price) also influence the final award amount.

What are the primary risks associated with this firm-fixed-price contract for ship availability?

The primary risk associated with this firm-fixed-price contract for ship availability lies in the potential for unforeseen issues arising during the maintenance period that may exceed the contractor's initial cost estimates. While the firm-fixed-price structure is designed to cap the government's cost, it shifts the risk of cost overruns to the contractor. If significant, unpredicted repairs or component failures are discovered, the contractor might face financial strain, potentially impacting the quality or timeliness of the work, or leading to claims for equitable adjustments. Another risk is ensuring the contractor possesses the necessary specialized skills and parts availability to complete the complex repairs within the specified timeframe, which is critical for maintaining naval operational readiness.

How effective is the 'selected restricted availability' designation in ensuring the USS Manchester remains operationally ready?

The 'selected restricted availability' designation is a crucial mechanism for ensuring the USS Manchester (LCS-14) remains operationally ready by focusing maintenance and repair efforts on critical systems and components. This approach allows the Navy to prioritize essential work needed to address specific deficiencies or to perform scheduled maintenance that directly impacts the ship's combat effectiveness and deployability. By restricting the scope to essential tasks, the Navy aims to optimize resource allocation, reduce downtime, and ensure the ship can return to operational status efficiently. The effectiveness hinges on accurate initial assessments of the ship's condition and the contractor's ability to execute the defined scope within the allocated time and budget.

What is the typical duration and scope of 'selected restricted availability' for LCS-class ships?

The duration and scope of a 'selected restricted availability' (SRA) for Littoral Combat Ships (LCS) can vary significantly depending on the specific needs of the vessel and the maintenance cycle. For the USS Manchester (LCS-14), the contract duration is approximately 684 days (from April 14, 2024, to February 27, 2026), which encompasses the availability period. An SRA typically involves targeted maintenance, repairs, and upgrades to ensure the ship's operational readiness. This might include hull maintenance, propulsion system servicing, combat system checks, and habitability improvements. The 'restricted' nature implies a focus on specific, identified needs rather than a full overhaul, aiming for efficiency and timely return to service.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $36,596,411

Exercised Options: $33,583,482

Current Obligation: $33,583,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D4327

IDV Type: IDC

Timeline