DoD awards $2.3M for USS DEWEY (DDG-105) FY26 6C1 SRA Bundle# 4 to Sumitomo Heavy Industries

Contract Overview

Contract Amount: $2,345,176 ($2.3M)

Contractor: Sumitomo Heavy Industries, Ltd

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2026-09-07

Contract Duration: 244 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USS DEWEY (DDG-105) FY26 6C1 SRA BUNDLE# 4

Plain-Language Summary

Department of Defense obligated $2.3 million to SUMITOMO HEAVY INDUSTRIES, LTD for work described as: USS DEWEY (DDG-105) FY26 6C1 SRA BUNDLE# 4 Key points: 1. Contract value represents a specific repair and maintenance package for a guided-missile destroyer. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar vehicle, indicating ongoing needs. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The duration of 244 days covers a defined period for the specified repair work. 5. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repairing, a specialized sector. 6. The awardee, Sumitomo Heavy Industries, Ltd., is a significant player in shipbuilding and heavy industry.

Value Assessment

Rating: fair

Benchmarking the value of this specific repair bundle is challenging without comparable data for similar vessels and repair scopes. The firm fixed-price nature provides cost certainty, but the overall value for money depends on the execution and quality of the repairs. Further analysis would require understanding the specific technical requirements and the contractor's historical performance on similar naval repair contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This competitive process is intended to drive down prices and ensure the government receives the best value. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing and high-quality services to win awards.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will operate the USS DEWEY (DDG-105), ensuring its operational readiness. The services delivered include critical ship building and repairing activities necessary for maintaining the vessel's structural integrity and combat systems. The geographic impact is primarily focused on the location where the repairs will be conducted, likely a shipyard facility. Workforce implications include employment opportunities for skilled labor in shipbuilding and repair trades at the awarded contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price nature.
Dependence on a single contractor for a critical repair task could lead to scheduling conflicts or delays if the contractor faces internal issues.
Ensuring the quality and thoroughness of repairs to meet stringent naval standards requires robust government oversight.

Positive Signals

Award to a known entity like Sumitomo Heavy Industries suggests a level of confidence in their capabilities.
The firm fixed-price contract type provides budget predictability for this specific repair package.
Full and open competition indicates a robust market engagement process, aiming for optimal value.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a highly specialized and capital-intensive industry critical for national defense and maritime commerce. This contract falls within the defense industrial base, where government contracts are a significant driver of activity. Comparable spending benchmarks would involve analyzing other repair and maintenance contracts for similar naval vessels, considering factors like vessel class, age, and the scope of work.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor's capabilities. There is no explicit information regarding subcontracting plans for small businesses within this award, which would typically be detailed in a separate subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Department of the Navy, likely through contracting officers and technical representatives who monitor performance, quality, and adherence to contract terms. Accountability measures are embedded in the firm fixed-price structure, where the contractor is responsible for delivering the specified repairs within the agreed-upon cost. Transparency is facilitated through contract award databases, though specific details of the repair work and inspection reports may be sensitive.

Related Government Programs

Naval Ship Maintenance and Repair Programs
Shipbuilding and Repair Contracts
Defense Logistics Agency (DLA) Support Services
Fleet Readiness Commands

Risk Flags

Potential for scope creep if additional repair needs are identified.
Contractor performance risk related to quality and timeliness.
Dependency on specialized shipyard facilities and skilled labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to SUMITOMO HEAVY INDUSTRIES, LTD. USS DEWEY (DDG-105) FY26 6C1 SRA BUNDLE# 4

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 $2.3 million.

What is the period of performance?

Start: 2026-01-06. End: 2026-09-07.

What is Sumitomo Heavy Industries' track record with the Department of Defense for similar ship repair services?

Sumitomo Heavy Industries, Ltd. has a significant history in shipbuilding and heavy industry, including contracts with defense organizations globally. While specific details on their past performance with the U.S. Department of Defense for naval vessel repairs of this exact scope are not provided in the summary data, their established presence in the industry suggests a capacity to undertake such work. A deeper dive would involve reviewing historical contract awards, performance evaluations, and any reported issues or successes on previous naval repair projects to assess their reliability and expertise in meeting the stringent requirements of the U.S. Navy.

How does the $2.3 million award compare to the average cost of similar repair bundles for guided-missile destroyers?

Directly comparing the $2.3 million award for the USS DEWEY (DDG-105) FY26 6C1 SRA Bundle# 4 to an average cost is difficult without more granular data on comparable repair scopes and vessel classes. The cost is influenced by the specific systems requiring repair, the extent of the work (e.g., hull, propulsion, combat systems), and the prevailing market rates for specialized labor and materials. Naval repair costs can vary significantly. To establish a benchmark, one would need to analyze a portfolio of similar repair contracts for Arleigh Burke-class destroyers or comparable vessels, accounting for the year of award, the specific repair tasks, and the geographic location of the work.

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

The primary risk for the government in a firm fixed-price contract is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. For Sumitomo Heavy Industries, the risk lies in accurately estimating all labor, material, and overhead costs for the 244-day repair period. If unexpected technical challenges emerge, or if material prices surge, the contractor bears the financial burden, potentially leading to delays or disputes if they seek contract modifications. Robust government oversight is crucial to mitigate quality risks.

What is the expected impact of these repairs on the operational readiness of the USS DEWEY (DDG-105)?

These repairs are intended to directly enhance or maintain the operational readiness of the USS DEWEY (DDG-105). The '6C1 SRA Bundle# 4' designation suggests a specific package of scheduled repair and availability work critical for ensuring the ship's systems function as intended. By addressing maintenance needs, the contract aims to prevent potential failures, extend the vessel's service life, and ensure it is equipped to perform its assigned missions effectively. The successful completion of these repairs is vital for the U.S. Navy's fleet readiness.

How has spending on ship building and repairing (NAICS 336611) by the Department of the Navy trended in recent fiscal years?

Spending on ship building and repairing by the Department of the Navy has historically been substantial, reflecting the significant investment required to maintain and modernize a large naval fleet. While specific year-over-year figures for NAICS 336611 are not provided here, overall Navy shipbuilding and repair budgets are typically in the billions of dollars annually. Trends are influenced by geopolitical factors, fleet modernization plans, the service life of existing vessels, and the development of new classes of ships. Periods of increased global tension or strategic shifts often correlate with higher spending in this sector.

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: N6264926RA001

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: $2,345,176

Exercised Options: $2,345,176

Current Obligation: $2,345,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N6264921G0002

IDV Type: BOA

Timeline