Navy Awards $7.8M Contract for USNS ALAN SHEPARD (T-AKE 3) ROH to HD Hyundai Heavy Industries

Contract Overview

Contract Amount: $7,838,070 ($7.8M)

Contractor: HD Hyundai Heavy Industries CO.,Ltd.

Awarding Agency: Department of Defense

Start Date: 2025-08-05

End Date: 2025-12-29

Contract Duration: 146 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS ALAN SHEPARD (T-AKE 3) ROH

Plain-Language Summary

Department of Defense obligated $7.8 million to HD HYUNDAI HEAVY INDUSTRIES CO.,LTD. for work described as: USNS ALAN SHEPARD (T-AKE 3) ROH Key points: 1. Contract awarded for ship repair and overhaul services. 2. HD Hyundai Heavy Industries is the contractor. 3. Full and open competition was utilized. 4. The contract is firm fixed price, indicating clear cost expectations.

Value Assessment

Rating: good

The contract value of $7.8M for a ship overhaul appears reasonable given the scope of work. Benchmarking against similar complex naval vessel repairs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to better price discovery.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayer dollars by encouraging multiple bids.

Public Impact

Ensures readiness of a critical naval asset. Supports the shipbuilding and repair industry. Maintains US naval operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during overhaul.
Dependence on a single contractor for a critical repair.

Positive Signals

Firm fixed price contract limits cost uncertainty.
Full and open competition promotes competitive pricing.

Sector Analysis

This contract falls within the shipbuilding and repair sector, which is crucial for maintaining naval fleet readiness. Spending in this area can fluctuate based on fleet age and modernization needs.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or if the scope inherently favored larger entities.

Oversight & Accountability

The award process under full and open competition suggests a degree of oversight. However, monitoring the execution of the work and adherence to the fixed price is crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for unforeseen repair needs.
Contractor's past performance.
Availability of critical spare parts.
Schedule adherence risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to HD HYUNDAI HEAVY INDUSTRIES CO.,LTD.. USNS ALAN SHEPARD (T-AKE 3) ROH

Who is the contractor on this award?

The obligated recipient is HD HYUNDAI HEAVY INDUSTRIES CO.,LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2025-08-05. End: 2025-12-29.

What is the historical performance of HD Hyundai Heavy Industries on similar naval contracts?

Assessing HD Hyundai Heavy Industries' past performance on comparable naval repair and overhaul contracts is vital. This includes evaluating their track record for on-time delivery, adherence to budget, quality of work, and any history of disputes or contract modifications. Such a review would provide insight into their reliability and capability to execute this specific contract successfully.

Are there any specific risks associated with the 'ROH' (Regular Overhaul) process for this vessel class?

The Regular Overhaul (ROH) process for naval vessels can involve complex and unforeseen challenges, potentially leading to scope creep and cost increases beyond the initial fixed price. Risks may include discovering hidden structural damage, obsolescence of systems requiring upgrades, or difficulties in sourcing specialized parts. Effective risk mitigation strategies and contingency planning by the contractor are essential.

How does the awarded price compare to the government's independent cost estimate for this overhaul?

Comparing the awarded contract price to the government's independent cost estimate (ICE) is a key indicator of value. If the awarded price is significantly lower than the ICE, it suggests strong competition or potentially an aggressive bid. Conversely, if it's higher, it warrants closer scrutiny of the scope and the bidding process to ensure taxpayer funds are used efficiently.

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: N6264925RL019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HD Hyundai Heavy Industries CO. Ltd.

Address: 1000, BANGEOJINSUNHWANDO-RO DONG-GU, ULSAN

Business Categories: Category Business, Foreign Owned, International Organization, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,841,070

Exercised Options: $7,838,070

Current Obligation: $7,838,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline