DoD's $3.3M Ship Repair Contract for USS RALPH JOHNSON (DDG114) Awarded to Sumitomo Heavy Industries
Contract Overview
Contract Amount: $3,322,851 ($3.3M)
Contractor: Sumitomo Heavy Industries, Ltd
Awarding Agency: Department of Defense
Start Date: 2025-04-21
End Date: 2026-03-18
Contract Duration: 331 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USS RALPH JOHNSON (DDG114) FY25 SRA 5C1
Plain-Language Summary
Department of Defense obligated $3.3 million to SUMITOMO HEAVY INDUSTRIES, LTD for work described as: USS RALPH JOHNSON (DDG114) FY25 SRA 5C1 Key points: 1. Contract awarded to a foreign entity (Sumitomo Heavy Industries) for ship repair. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for ship building and repairing services. 4. The award value is approximately $3.32 million. 5. This is a delivery order under a larger contract.
Value Assessment
Rating: fair
The contract value of $3.32 million for ship repair is moderate. Benchmarking against similar contracts for naval vessel maintenance would be necessary to fully assess pricing fairness, especially considering the foreign vendor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes price discovery and competitive pricing. However, the award to a foreign entity warrants scrutiny regarding the breadth of domestic competition.
Taxpayer Impact: Taxpayer funds are being used for ship repair services. The impact depends on whether the competitive process ensured the best value and avoided unnecessary costs.
Public Impact
Ensures readiness of a naval vessel through necessary repairs. Supports the Department of the Navy's operational capabilities. Potential economic impact on the awarded company and its supply chain. Highlights international participation in US defense contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Foreign vendor award
- Potential for higher costs due to international logistics/tariffs
- Limited visibility into domestic repair capabilities utilized
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Delivery order under an existing contract
Sector Analysis
The defense sector, particularly naval shipbuilding and repair, involves complex, high-value contracts. Spending benchmarks for ship repair vary significantly based on vessel type, age, and scope of work.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it was awarded to a large foreign corporation. Further analysis would be needed to determine if any subcontracting opportunities exist for US small businesses.
Oversight & Accountability
Oversight would focus on contract performance, adherence to specifications, and ensuring the competitive process yielded fair pricing. The Department of the Navy is responsible for monitoring this delivery order.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Award to foreign entity
- Potential for higher overall costs due to international factors
- Limited direct benefit to US small businesses
- Need for detailed scope of work comparison for value assessment
Tags
ship-building-and-repairing, department-of-defense, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.3 million to SUMITOMO HEAVY INDUSTRIES, LTD. USS RALPH JOHNSON (DDG114) FY25 SRA 5C1
Who is the contractor on this award?
The obligated recipient is SUMITOMO HEAVY INDUSTRIES, 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 $3.3 million.
What is the period of performance?
Start: 2025-04-21. End: 2026-03-18.
What is the specific scope of work for this $3.32 million repair contract, and how does it compare to typical repair costs for a DDG-class destroyer?
The provided data does not detail the specific scope of work beyond 'Ship Building and Repairing'. A comprehensive assessment of value would require comparing the detailed SOW against historical data for similar DDG-class destroyer repairs, considering factors like shipyard labor rates, parts, and complexity of the required maintenance or upgrades.
What were the key factors that led to Sumitomo Heavy Industries being selected over domestic competitors in this full and open competition?
In a full and open competition, the selection of Sumitomo Heavy Industries suggests they offered the best value proposition, which could include a combination of price, technical capability, past performance, and delivery schedule. The specific rationale would be detailed in the source selection decision document.
What is the potential long-term impact on US shipbuilding and repair capabilities when contracts of this nature are awarded to foreign entities?
Awarding repair contracts to foreign entities can impact the US industrial base by potentially reducing workload for domestic shipyards, which could affect workforce retention and investment in facilities. However, it can also foster international partnerships and ensure critical maintenance is performed efficiently if domestic capacity is strained or specialized expertise is required.
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: N6264925RA025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 19, NATSUSHIMACHO, YOKOSUKA
Business Categories: Category Business, Foreign Owned, International Organization, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $3,761,216
Exercised Options: $3,761,216
Current Obligation: $3,322,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6264921G0002
IDV Type: BOA
Timeline
Start Date: 2025-04-21
Current End Date: 2026-03-18
Potential End Date: 2026-03-18 00:00:00
Last Modified: 2026-01-14
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