DoD Awards $2.2M Ship Repair Contract to Sumitomo Heavy Industries Under Full and Open Competition
Contract Overview
Contract Amount: $2,219,537 ($2.2M)
Contractor: Sumitomo Heavy Industries, Ltd
Awarding Agency: Department of Defense
Start Date: 2025-12-04
End Date: 2026-04-28
Contract Duration: 145 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE CONTRACTOR SHALL ACCOMPLISH THE TGI REQUIREMENTS LISTED IN ATTACHMENTS OF SECTION J.
Plain-Language Summary
Department of Defense obligated $2.2 million to SUMITOMO HEAVY INDUSTRIES, LTD for work described as: THE CONTRACTOR SHALL ACCOMPLISH THE TGI REQUIREMENTS LISTED IN ATTACHMENTS OF SECTION J. Key points: 1. Contract value is $2.22 million for ship building and repairing services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract is a delivery order with a firm fixed price, suggesting cost certainty. 4. The sector is primarily Defense, specifically shipbuilding and repair.
Value Assessment
Rating: good
The contract value of $2.22 million appears reasonable for specialized ship repair services. Benchmarking against similar contracts would provide a more definitive assessment, but the firm fixed-price structure suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method typically fosters competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for essential defense services.
Public Impact
Ensures readiness of naval assets through specialized repair services. Supports the shipbuilding and repair industry, potentially impacting related supply chains. The firm fixed-price contract provides budget predictability for the Department of the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Clear scope of work outlined in attachments.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on shipbuilding and repair. Spending in this area is critical for maintaining naval fleet capabilities and can be benchmarked against historical repair costs and new construction expenditures.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if TGI requirements are not clearly defined or managed.
- Dependence on a single contractor for specific repair needs.
- Geopolitical or supply chain disruptions impacting Sumitomo Heavy Industries.
- Ensuring adherence to quality standards throughout the repair process.
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 $2.2 million to SUMITOMO HEAVY INDUSTRIES, LTD. THE CONTRACTOR SHALL ACCOMPLISH THE TGI REQUIREMENTS LISTED IN ATTACHMENTS OF SECTION J.
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 $2.2 million.
What is the period of performance?
Start: 2025-12-04. End: 2026-04-28.
What specific TGI requirements are detailed in the attachments, and how do they align with the contractor's capabilities?
The TGI (Technical Guidance Instructions) requirements are detailed in Section J attachments. These likely encompass specific repair procedures, technical specifications, and quality standards for the vessel. Sumitomo Heavy Industries, a major shipbuilder, is expected to possess the necessary expertise and facilities to meet these technical demands, ensuring the work is performed to the required standards.
What is the historical performance record of Sumitomo Heavy Industries with the Department of Defense, particularly for similar repair contracts?
Assessing Sumitomo Heavy Industries' past performance with the DoD is crucial for risk evaluation. A review of their contract history, including on-time delivery, quality of work, and adherence to budget on previous shipbuilding and repair projects, would provide insight into their reliability and capability to execute this current contract successfully.
How does the firm fixed-price structure impact the potential for cost overruns or savings for the government in this contract?
A firm fixed-price contract places the risk of cost overruns on the contractor. This structure provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. However, it may lead to higher initial bids to account for contractor risk, and the government may not benefit from cost savings if the contractor completes the work under budget.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1-1, OSAKI 2-CHOME, SHINAGAWA-KU
Business Categories: Category Business, Foreign Owned, International Organization, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,219,537
Exercised Options: $2,219,537
Current Obligation: $2,219,537
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6264921D0006
IDV Type: IDC
Timeline
Start Date: 2025-12-04
Current End Date: 2026-04-28
Potential End Date: 2026-04-28 00:00:00
Last Modified: 2026-01-11
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