DoD Awards $12.4M for USS Halsey Modernization, Competition Limited by Delivery Order
Contract Overview
Contract Amount: $12,406,147 ($12.4M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-14
End Date: 2027-02-28
Contract Duration: 1,020 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE MANAGEMENT, LABOR, MATERIAL AND INSTALLATION SERVICES TO ACCOMPLISH DDG MODERNIZATION BACKFIT (DDGM BF) CORE ALTERATION INSTALLATION ON BOARD USS HALSEY (DDG-97).
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROVIDE MANAGEMENT, LABOR, MATERIAL AND INSTALLATION SERVICES TO ACCOMPLISH DDG MODERNIZATION BACKFIT (DDGM BF) CORE ALTERATION INSTALLATION ON BOARD USS HALSEY (DDG-97). Key points: 1. Contract focuses on critical DDG modernization for USS Halsey. 2. General Dynamics Information Technology, Inc. is the prime contractor. 3. The award is a Delivery Order under a larger contract. 4. Spending is within the Ship Building and Repairing sector.
Value Assessment
Rating: good
The contract value of $12.4M for a 1020-day effort appears reasonable for complex ship modernization. Benchmarking against similar DDG modernization projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This is a Delivery Order, implying it was likely awarded under a pre-existing contract. While the original contract may have had full and open competition, this specific order's competition method is limited. This can impact price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential naval modernization, ensuring the continued operational readiness of a key asset.
Public Impact
Enhances the combat capabilities and lifespan of a critical Navy destroyer. Supports national defense by maintaining a modern fleet. Contributes to the maritime industrial base through specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for this specific delivery order.
- Potential for cost overruns in complex modernization projects.
Positive Signals
- Addresses critical modernization needs for a naval asset.
- Awarded to a known contractor with relevant experience.
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is crucial for maintaining the U.S. Navy's fleet. Spending in this area is often substantial due to the complexity and cost of naval vessels.
Small Business Impact
The data indicates the prime contractor is General Dynamics Information Technology, Inc. There is no explicit information provided regarding small business participation in this specific delivery order.
Oversight & Accountability
Delivery orders are typically subject to the oversight of the contracting activity that awarded the base contract. The Department of the Navy is responsible for ensuring performance and accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep during modernization.
- Reliance on a single contractor for a critical task.
- Schedule delays impacting fleet readiness.
- Cost overruns due to unforeseen technical challenges.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROVIDE MANAGEMENT, LABOR, MATERIAL AND INSTALLATION SERVICES TO ACCOMPLISH DDG MODERNIZATION BACKFIT (DDGM BF) CORE ALTERATION INSTALLATION ON BOARD USS HALSEY (DDG-97).
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $12.4 million.
What is the period of performance?
Start: 2024-05-14. End: 2027-02-28.
What was the original competition strategy for the base contract under which this delivery order was issued?
The provided data does not specify the competition strategy for the base contract. Delivery orders are issued against existing indefinite-delivery, indefinite-quantity (IDIQ) contracts. The competition method for the base contract would have been established at its inception, potentially involving full and open competition or other authorized sources.
Are there specific performance metrics or milestones tied to this delivery order to ensure timely and effective modernization?
The data indicates a duration of 1020 days for the effort, suggesting a planned timeline. However, specific performance metrics and milestones are not detailed. Effective oversight by the Department of the Navy would involve tracking progress against these implicit milestones and ensuring adherence to quality standards for the modernization work.
What is the projected return on investment or long-term value derived from this modernization effort for the USS Halsey?
The primary value is the extension of the USS Halsey's operational lifespan and enhancement of its combat capabilities, ensuring its continued effectiveness in national defense. Quantifying a direct financial ROI is challenging for military assets, but the investment is critical for maintaining fleet readiness and strategic advantage.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6449824Q3058
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,997,527
Exercised Options: $13,997,527
Current Obligation: $12,406,147
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,578,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6449821D0015
IDV Type: IDC
Timeline
Start Date: 2024-05-14
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-01-07
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