DoD's $58.4M Navy Ship Repair Contract Awarded to Huntington Ingalls Inc. Faces Competition Concerns

Contract Overview

Contract Amount: $58,433,574 ($58.4M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-02

End Date: 2023-03-01

Contract Duration: 364 days

Daily Burn Rate: $160.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CM/EM REPAIRS FY 22

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 million to HUNTINGTON INGALLS INC for work described as: CM/EM REPAIRS FY 22 Key points: 1. Significant contract value of $58.4M for ship repair services. 2. Sole-source award to Huntington Ingalls Inc. raises questions about competition. 3. Potential risk associated with limited competition and cost-plus fixed-fee contract type. 4. Spending falls within the Ship Building and Repairing sector.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific details on the repairs performed, but the total award value is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded via a Delivery Order, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This limited competition likely impacts price discovery and may result in higher costs for the government.

Taxpayer Impact: The lack of robust competition for this $58.4M contract could lead to taxpayers paying more than necessary for ship repair services.

Public Impact

Naval readiness may be impacted by the availability and cost of ship repair services. Taxpayer funds are being utilized for critical defense infrastructure maintenance. The specific repairs and their necessity will influence the overall public value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Lack of specific repair details

Positive Signals

Supports critical naval infrastructure
Awarded to a known industry player

Sector Analysis

This contract falls under the Ship Building and Repairing sector, which is crucial for national defense. Spending in this sector can be highly variable, influenced by fleet size, maintenance needs, and geopolitical factors.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. Large prime contractors often dominate this sector, potentially limiting small business participation.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of the Navy is responsible for monitoring performance and expenditures.

Related Government Programs

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

Risk Flags

Lack of competition
Cost-plus contract type risk
Potential for cost overruns
Limited transparency on repair scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 million to HUNTINGTON INGALLS INC. CM/EM REPAIRS FY 22

Who is the contractor on this award?

The obligated recipient is HUNTINGTON INGALLS 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 $58.4 million.

What is the period of performance?

Start: 2022-03-02. End: 2023-03-01.

What specific repairs were performed under this contract, and how do they align with the fixed fee component?

The provided data does not detail the specific repairs undertaken. Understanding the scope of work is essential to assess if the fixed fee adequately covers the services rendered and to evaluate the overall value proposition. Without this information, it's challenging to determine if the government received fair pricing for the actual work completed.

What efforts were made to explore competitive options before determining the contract was not available for competition?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION'. Further investigation would be needed to understand the justification for this determination. Typically, agencies must demonstrate that only one source can fulfill the requirement due to unique capabilities or urgent needs to justify a limited or sole-source award.

How does the cost of this contract compare to similar ship repair services provided to the Navy or other branches?

Benchmarking this contract's cost is difficult without more granular data on the specific services provided and their associated costs. Comparing the per-unit cost or total cost against similar repair contracts for comparable vessels would be necessary to assess cost-effectiveness. The 'br' field (160532) might represent a budget or baseline, but its context is unclear.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002417R4320

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc

Address: 4101 WASHINGTON AVE, NEWPORT NEWS, VA, 23607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,433,574

Exercised Options: $58,433,574

Current Obligation: $58,433,574

Actual Outlays: $37,083,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0002419D4306

IDV Type: IDC

Timeline