DoD awards $30.2M for CVN 78 aircraft carrier support, extending services through March 2026

Contract Overview

Contract Amount: $30,176,982 ($30.2M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-02

End Date: 2026-03-01

Contract Duration: 364 days

Daily Burn Rate: $82.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CVN 78 CMAV PLANNING & EXECUTION OF CLIN 0001 & CLIN 0002 ON THE CVN 78 EARLY SERVICE LIFE PERIOD (ESLP) CONTRACT N00024-19-D-4306

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to HUNTINGTON INGALLS INC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CVN 78 CMAV PLANNING & EXECUTION OF CLIN 0001 & CLIN 0002 ON THE CVN 78 EARLY SERVICE LIFE PERIOD (ESLP) CONTRACT N00024-19-D-4306 Key points: 1. Contract focuses on crucial planning and execution for the CVN 78's early service life. 2. Services are essential for maintaining the operational readiness of a key naval asset. 3. The award is a delivery order against an existing contract, indicating continuity of service. 4. Limited competition suggests potential for higher costs or reduced innovation. 5. The fixed-fee structure provides some cost control but requires careful oversight. 6. This contract supports a critical component of national defense infrastructure.

Value Assessment

Rating: fair

The contract value of $30.2 million for 364 days of service appears reasonable for specialized naval support. However, without detailed breakdowns of labor hours, rates, and material costs, a precise value-for-money assessment is challenging. Benchmarking against similar support contracts for aircraft carriers would provide a clearer picture of cost-effectiveness. The cost-plus-fixed-fee (CPFF) structure necessitates robust oversight to ensure efficient resource utilization and prevent cost overruns beyond the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This delivery order was not competed, indicating a sole-source award. This approach is often used when a specific contractor possesses unique capabilities, intellectual property, or has already established the necessary infrastructure and knowledge base for a particular system, as is common with complex platforms like aircraft carriers. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovative solutions from multiple vendors.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing for taxpayers. This can potentially lead to higher overall costs compared to a fully competed scenario.

Public Impact

The primary beneficiary is the U.S. Navy, ensuring the operational readiness and effective functioning of the USS Gerald R. Ford (CVN 78). Services include critical planning and execution for the aircraft carrier's early service life period. This contract directly impacts the Navy's power projection capabilities and national security. Workforce implications include specialized technical and engineering roles required for advanced naval systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost-plus-fixed-fee contracts require diligent oversight to manage costs effectively.
Dependence on a single contractor for critical support can create long-term risks.

Positive Signals

Award is against an existing contract, suggesting established performance and familiarity.
Focus on early service life ensures critical systems are maintained from the outset.
Contract duration provides a stable period for essential planning and execution.

Sector Analysis

This contract falls within the Ship Building and Repairing sector, specifically supporting a major naval vessel. The market for specialized naval support, particularly for advanced aircraft carriers like the CVN 78, is highly concentrated. Major defense contractors with extensive experience and security clearances dominate this niche. Spending in this area is driven by defense budgets and the lifecycle needs of capital-intensive naval assets. Comparable spending benchmarks would involve other major ship construction and maintenance contracts within the DoD.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of aircraft carrier support, it is unlikely that small businesses would be primary awardees for such a complex delivery order. Subcontracting opportunities for small businesses may exist, but they would likely be in specific, niche areas and dependent on the prime contractor's procurement strategy. The overall impact on the small business ecosystem for this specific contract is expected to be minimal.

Oversight & Accountability

Oversight for this delivery order would fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring the contractor to justify costs against the fixed fee. Transparency is typically managed through contract reporting mechanisms and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

CVN 78 Class Aircraft Carrier Program
Naval Ship Maintenance and Modernization
Defense Logistics and Support Services
Aircraft Carrier Fleet Readiness

Risk Flags

Sole-source award
Cost-plus contract type requires diligent oversight
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to HUNTINGTON INGALLS INC. THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CVN 78 CMAV PLANNING & EXECUTION OF CLIN 0001 & CLIN 0002 ON THE CVN 78 EARLY SERVICE LIFE PERIOD (ESLP) CONTRACT N00024-19-D-4306

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 $30.2 million.

What is the period of performance?

Start: 2025-03-02. End: 2026-03-01.

What is the historical spending pattern for the CVN 78 ESLP contract N00024-19-D-4306?

The provided data indicates this is a delivery order against contract N00024-19-D-4306 for the CVN 78 Early Service Life Period (ESLP). To understand the historical spending pattern, one would need to examine all previous delivery orders and task orders issued under this indefinite-delivery/indefinite-quantity (IDIQ) contract. This would reveal the total obligated amounts, the types of services procured, the frequency of awards, and the spending trajectory over the life of the contract. Without access to the full contract history, it's impossible to detail the historical spending patterns beyond this single delivery order's value of approximately $30.2 million.

How does the pricing of this delivery order compare to similar contracts for aircraft carrier support?

A direct price comparison is difficult without access to detailed cost breakdowns and a database of similar contracts. However, the value of $30.2 million for approximately one year of specialized planning and execution for a new, technologically advanced aircraft carrier like the CVN 78 is likely within a reasonable range, given the complexity and criticality of the services. Aircraft carrier support contracts are typically high-value due to the sophisticated systems involved, the specialized labor required, and the stringent quality and security standards. Benchmarking would require comparing labor rates, overhead application, and profit margins against other contracts for the Ford-class carriers or similar naval vessels, considering factors like contract type and scope.

What are the primary risks associated with this sole-source award for CVN 78 support?

The primary risk associated with this sole-source award is the lack of competitive pressure, which can lead to inflated pricing and potentially less incentive for the contractor to innovate or optimize performance. Taxpayers may not be receiving the best possible value for their investment. Another risk is contractor dependency; the Navy becomes reliant on Huntington Ingalls Inc. for this specific support, potentially limiting flexibility in future contracting decisions. Furthermore, without competition, there's a reduced opportunity to discover alternative, potentially more cost-effective, solutions or technologies. Ensuring robust oversight and performance management becomes even more critical to mitigate these risks.

How effective is the Cost Plus Fixed Fee (CPFF) contract type in managing costs for complex naval projects like CVN 78 support?

The Cost Plus Fixed Fee (CPFF) contract type aims to balance risk between the government and the contractor. The government pays the actual allowable costs incurred by the contractor, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, as can be the case with new platforms like the CVN 78 during its early service life. While the fixed fee provides a ceiling on profit, the government bears the risk of cost overruns if actual costs exceed estimates. Effectiveness hinges on rigorous government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor exercises efficient management practices to stay within projected cost parameters to protect the government's financial interest.

What is the track record of Huntington Ingalls Inc. in supporting naval aviation programs and aircraft carriers?

Huntington Ingalls Industries (HII), through its Newport News Shipbuilding division, is the sole builder of U.S. Navy aircraft carriers and has a long and extensive track record in this domain. They are responsible for the construction of the Ford-class carriers, including the CVN 78. Their experience encompasses the entire lifecycle of these vessels, from initial design and construction through maintenance, modernization, and inactivation. HII has consistently delivered these complex platforms, albeit often facing schedule and cost challenges inherent in such large-scale defense programs. Their deep institutional knowledge and specialized facilities make them a critical partner for the Navy's carrier fleet.

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

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: $35,140,308

Exercised Options: $35,140,308

Current Obligation: $30,176,982

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