Defense contract for ship repair services awarded to AMSEC LLC for over $141 million
Contract Overview
Contract Amount: $14,193,096 ($14.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-06-17
End Date: 2007-12-31
Contract Duration: 2,023 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200212!006318!1700!BS678 !SUPERVISOR SHIPBUILDING CONVERSI!GS23F8006H !C!N! !N!N6267802FCB01 !20020617!20030630!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000003965871!N!N!000000000000!J998!NON-NUCLEAR SHIP REPAIR (EAST) !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!C!S! ! ! !99990909!B! ! !N!A!A! !J! !003!N!2A!A! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001!
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to LEIDOS, INC. for work described as: 200212!006318!1700!BS678 !SUPERVISOR SHIPBUILDING CONVERSI!GS23F8006H !C!N! !N!N6267802FCB01 !20020617!20030630!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGI… Key points: 1. Contract value of $141,930,960 for ship repair services. 2. Awarded to AMSEC LLC, a contractor with a significant presence in defense. 3. Contract duration spans from June 2002 to December 2007. 4. Services fall under non-nuclear ship repair for the East Coast. 5. Procurement method was full and open competition, indicating broad market engagement. 6. The contract is a firm-fixed-price type, providing cost certainty.
Value Assessment
Rating: good
The contract value of over $141 million for ship repair services over a five-year period appears reasonable given the scope of work. Benchmarking against similar large-scale naval repair contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests a degree of cost control and predictability for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of multiple bidders (3 indicated) suggests a competitive environment that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive landscape that can lead to lower prices and higher quality services.
Public Impact
Naval operations on the East Coast benefit from the maintenance and repair of critical vessels. The contract supports the operational readiness of the U.S. Navy's fleet. Geographic impact is concentrated in Virginia Beach, VA, a hub for naval activities. Workforce implications include employment for skilled trades in ship repair and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen complexities arise in ship repair.
- Dependence on a single contractor for critical repair services could pose a risk.
- Ensuring consistent quality across all repair tasks is crucial for vessel safety and performance.
Positive Signals
- Firm-fixed-price contract provides budget certainty.
- Full and open competition suggests a robust selection process.
- Contract duration allows for sustained support and potential for contractor expertise development.
Sector Analysis
This contract falls within the broader defense sector, specifically focusing on ship maintenance and repair. The market for naval ship repair is specialized, involving a limited number of highly capable contractors. Spending in this area is critical for maintaining naval fleet readiness and is subject to significant government oversight due to its strategic importance and cost.
Small Business Impact
The data does not indicate any specific small business set-aside provisions for this contract. However, large prime contractors like AMSEC LLC often engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem within the defense industrial base.
Oversight & Accountability
The contract is subject to standard Department of Defense procurement oversight. The firm-fixed-price nature provides a degree of financial oversight. Accountability measures would typically involve performance reviews, quality inspections, and adherence to contract terms. Transparency is generally maintained through contract award databases, though specific operational details might be classified.
Related Government Programs
- Naval Ship Maintenance and Repair
- Defense Logistics and Support Services
- Shipbuilding and Repair Services
- Military Sealift Command Contracts
Risk Flags
- Contract duration exceeds typical short-term service agreements.
- Potential for cost creep if fixed price doesn't account for long-term inflation.
- Dependence on contractor performance for critical naval readiness.
Tags
defense, department-of-defense, department-of-the-navy, ship-repair, amsec-llc, leidos-inc, firm-fixed-price, full-and-open-competition, virginia, administrative-management-and-general-management-consulting-services, naval-operations, east-coast
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to LEIDOS, INC.. 200212!006318!1700!BS678 !SUPERVISOR SHIPBUILDING CONVERSI!GS23F8006H !C!N! !N!N6267802FCB01 !20020617!20030630!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000003965871!N!N!000000000000!J998!NON-NUCLEAR SHIP REPAIR (EAST) !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!C!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 2002-06-17. End: 2007-12-31.
What is the historical spending trend for non-nuclear ship repair services on the East Coast by the Department of the Navy?
Analyzing historical spending trends for non-nuclear ship repair services on the East Coast by the Department of the Navy requires access to comprehensive historical contract data. Generally, spending in this category fluctuates based on fleet size, operational tempo, and the age of vessels requiring maintenance. Factors such as budget allocations, geopolitical events, and the availability of dry-dock facilities also influence spending patterns. Over the years, there has been a consistent need for these services to maintain fleet readiness, with significant investments made annually. Specific trends would show periods of increased spending during major fleet modernization efforts or heightened operational demands, and potentially decreased spending during budget austerity measures. The data for this specific contract (2002-2007) falls within a period of significant military operations, which likely influenced demand and spending for ship repair.
How does the awarded price compare to industry benchmarks for similar ship repair contracts?
Comparing the awarded price of $141,930,960 to industry benchmarks for similar ship repair contracts requires detailed analysis of the specific services rendered, vessel types, and the duration of the contract. Without granular data on the scope of work (e.g., types of repairs, hull classifications, specific systems serviced), a precise benchmark is challenging. However, large-scale naval ship repair contracts are typically complex and costly due to the specialized labor, materials, and facilities required. The firm-fixed-price nature of this contract suggests that the government sought to establish a clear cost ceiling. Industry benchmarks would consider factors like labor rates for skilled trades (welders, electricians, pipefitters), material costs, overhead, and profit margins. Given the duration (over 5 years) and the substantial value, this contract likely encompassed a wide range of maintenance and repair activities for multiple vessels, placing it within the higher end of typical contract values for such services.
What is AMSEC LLC's track record with the Department of Defense, particularly in ship repair?
AMSEC LLC, now part of Leidos, has a significant track record with the Department of Defense, including extensive experience in naval engineering, integration, and support services, which often encompass ship repair and maintenance. Their history with the Navy involves providing technical services, program management, and lifecycle support for various naval platforms. While this specific contract was awarded to AMSEC LLC, it's important to note that the prime contractor listed in the provided data is Leidos, Inc., suggesting a potential acquisition or restructuring event. Leidos is a major defense contractor with a broad portfolio that includes maritime services. AMSEC's legacy contributions and Leidos's current capabilities indicate a strong, established presence in supporting naval operations through various technical and maintenance contracts.
What are the potential risks associated with a long-term contract for ship repair services?
Long-term contracts for ship repair services, like the one awarded to AMSEC LLC, carry several potential risks. One primary risk is cost escalation if the firm-fixed-price contract does not adequately account for inflation in labor and material costs over its multi-year duration. Another risk is technological obsolescence; if new repair techniques or materials emerge, the contractor might be locked into older methods. Performance degradation over time is also a concern, where the contractor's efficiency or quality might decline without sufficient oversight or incentives for continuous improvement. Furthermore, a long-term commitment to a single contractor can reduce flexibility for the government to adapt to changing fleet needs or to leverage competitive pricing from other providers should market conditions shift favorably. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks.
How does the competition level (full and open) impact the overall value and efficiency of this contract?
The 'full and open' competition level for this contract is a significant factor in its potential value and efficiency. By allowing all responsible sources to bid, the Department of the Navy aimed to maximize the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This broad competition typically drives down prices as contractors vie for the award. It also encourages innovation and efficiency, as companies strive to differentiate themselves through technical solutions and cost-effectiveness. The presence of three bidders, as indicated, suggests a reasonably competitive environment. This level of competition generally leads to better price discovery for the government and increases the probability that the awarded contract represents good value for taxpayer money, compared to sole-source or limited competition scenarios where options are restricted.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2002-06-17
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2013-04-01
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