DoD's $149.9M Naval Undersea Warfare Center Contract Awarded to Huntington Ingalls Inc

Contract Overview

Contract Amount: $25,924,664 ($25.9M)

Contractor: Huntington Ingalls Inc

Awarding Agency: Department of Defense

Start Date: 2005-06-06

End Date: 2008-10-31

Contract Duration: 1,243 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200509!053314!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N6660405C3314 !A!N! !N! ! !20050606!20080605!001307495!149899957!016435559!N!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !+000004400000!N!N!000010406518!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !S1 !SERVICES !000 !* !336611!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!2!001!E! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! !1724!N66604!0001! !

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to HUNTINGTON INGALLS INC for work described as: 200509!053314!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N6660405C3314 !A!N! !N! ! !20050606!20080605!001307495!149899957!016435559!N!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWP… Key points: 1. The contract, valued at $149.9 million, was awarded to Huntington Ingalls Inc. for shipbuilding and repair services. 2. Awarded by the Department of the Navy, this contract falls under the broader Department of Defense spending. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is primarily Defense, with a specific focus on shipbuilding and repair.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure suggests a higher risk of cost escalation compared to fixed-price contracts. Benchmarking against similar shipbuilding and repair contracts is crucial to assess if the awarded price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies limited competition. This method may not have resulted in the most competitive pricing possible.

Taxpayer Impact: The limited competition and cost-plus structure could lead to higher taxpayer costs than a fully competitive, fixed-price contract.

Public Impact

Supports naval readiness and technological advancement in undersea warfare. Impacts the shipbuilding and repair industry, potentially creating or sustaining jobs. Funds are allocated to a major defense contractor, influencing the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure
Limited competition method
Potential for cost overruns

Positive Signals

Supports critical naval capabilities
Awarded to a known defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically focusing on shipbuilding and repair. Spending in this area is critical for national security and often involves large, complex contracts with specialized requirements.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Large defense contracts often involve prime contractors who may then subcontract to smaller businesses.

Oversight & Accountability

Oversight would typically be managed by the Naval Undersea Warfare Center and the Department of the Navy, ensuring contract compliance and performance. The Cost Plus Fixed Fee nature necessitates close monitoring of expenditures.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition (exclusion of sources)
Potential for cost overruns
Long contract duration (over 3 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to HUNTINGTON INGALLS INC. 200509!053314!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N6660405C3314 !A!N! !N! ! !20050606!20080605!001307495!149899957!016435559!N!NEWPORT NEWS SHIPBUILDING AND !4101 WASHINGTON AVE !NEWPORT NEWS !VA!23607!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !+000004400000!N!N!000010406518!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !S1 !SERVICES !000 !* !336611!E! !3! ! ! ! ! !202

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 $25.9 million.

What is the period of performance?

Start: 2005-06-06. End: 2008-10-31.

What specific undersea warfare capabilities does this contract aim to enhance or develop?

The contract is for 'RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV,' suggesting it supports research, development, testing, and evaluation of electronics and communication equipment for undersea platforms. This could include advanced sonar, communication systems, or other critical technologies necessary for naval superiority in the undersea domain.

How does the 'exclusion of sources' in the competition method impact the overall value for taxpayers?

Excluding sources limits the pool of potential bidders, which can reduce competitive pressure and potentially lead to higher prices than if all qualified vendors were allowed to compete. While the contract was not sole-source, the exclusion suggests specific criteria were applied, potentially limiting price discovery and value optimization for the government.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness and value?

Key performance indicators would likely focus on timely delivery of research and development milestones, adherence to technical specifications for electronic and communication equipment, and effective management of costs within the Cost Plus Fixed Fee framework. Performance metrics related to the advancement of specific undersea warfare technologies would also be crucial.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline