Navy Awards $182M+ Contract for Non-Nuclear Ship Repair to Todd Pacific Shipyards

Contract Overview

Contract Amount: $192,968,540 ($193.0M)

Contractor: Puget Sound Commerce Center, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-31

End Date: 2011-12-31

Contract Duration: 2,831 days

Daily Burn Rate: $68.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200412!042697!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4152 !A!N! !N! ! !20040331!20081222!001288828!001288828!001288828!N!TODD PACIFIC SHIPYARDS CORPORA!1801 16TH AVE SW !SEATTLE !WA!98134!63000!033!53!SEATTLE !KING !WASHINGTON!+000000018224!N!N!000132950417!J998!NON-NUCLEAR SHIP REPAIR (EAST) !S1 !SERVICES !161 !CVN 68 !237990!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98337

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $193.0 million to PUGET SOUND COMMERCE CENTER, INC. for work described as: 200412!042697!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4152 !A!N! !N! ! !20040331!20081222!001288828!001288828!001288828!N!TODD PACIFIC SHIPYARDS CORPORA!1801 16TH AVE SW !SEATTLE !WA!98134!63000!033!53!SEATTLE !KING… Key points: 1. Contract awarded to Todd Pacific Shipyards for non-nuclear ship repair services. 2. The contract has a base value of $63 million with a potential value of over $182 million. 3. Competition was full and open, indicating a competitive bidding process. 4. The sector is primarily Defense, specifically ship repair and maintenance.

Value Assessment

Rating: good

The contract's base value is $63 million, with a potential ceiling of $182 million. This range suggests flexibility for scope changes or additional services, common in complex repair contracts. Benchmarking against similar naval ship repair contracts would be needed for a precise per-unit cost assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a non-competitive procurement.

Public Impact

Ensures continued maintenance and repair of naval vessels, crucial for fleet readiness. Supports jobs in the shipbuilding and repair industry within Washington state. Provides essential services to the Department of the Navy, contributing to national security.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns if the contract scope significantly expands beyond the base value.
Dependence on a single contractor for critical repair services.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for services.
Supports a significant industrial base.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on ship repair and maintenance. Spending in this area is critical for maintaining naval operational capabilities. Benchmarks for similar contracts vary widely based on ship class and repair complexity.

Small Business Impact

While the primary awardee is a large business, the contract may indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's definitive nature and full and open competition suggest established oversight processes. However, the potential for scope expansion warrants close monitoring of expenditures and performance to ensure accountability.

Related Government Programs

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

Risk Flags

Potential for cost growth beyond base value
Contract type (Cost Plus Award Fee) can incentivize higher spending
Dependence on a single large contractor
Long contract duration increases exposure to market fluctuations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.0 million to PUGET SOUND COMMERCE CENTER, INC.. 200412!042697!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4152 !A!N! !N! ! !20040331!20081222!001288828!001288828!001288828!N!TODD PACIFIC SHIPYARDS CORPORA!1801 16TH AVE SW !SEATTLE !WA!98134!63000!033!53!SEATTLE !KING !WASHINGTON!+000000018224!N!N!000132950417!J998!NON-NUCLEAR SHIP REPAIR (EAST) !S1 !SERVICES !161 !CVN 68 !237990!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is PUGET SOUND COMMERCE CENTER, 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 $193.0 million.

What is the period of performance?

Start: 2004-03-31. End: 2011-12-31.

What is the historical performance of Todd Pacific Shipyards on similar naval contracts?

Historical performance data for Todd Pacific Shipyards on comparable naval contracts would provide insight into their reliability, quality of work, and adherence to schedules and budgets. This information is crucial for assessing the risk associated with this award and predicting future performance. A review of past contract awards and performance reviews would be beneficial.

How does the potential contract value compare to the estimated cost of similar ship repair projects?

Comparing the potential contract value of $182 million to industry benchmarks for similar non-nuclear ship repairs is essential for evaluating cost-effectiveness. Significant deviations could indicate potential overpricing or an unusually complex scope of work. This analysis helps determine if taxpayers are receiving fair value for the services rendered.

What mechanisms are in place to manage scope creep and control costs within the contract's potential value?

Effective contract management is vital to control costs, especially with a cost-plus award fee structure and a high potential value. The Department of the Navy must have robust oversight to manage any changes in scope, ensure work is necessary and efficiently performed, and hold the contractor accountable for meeting performance objectives within budget constraints.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002403R4022

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vigor Industrial LLC (UEI: 153727818)

Address: 1801 16TH AVE SW, SEATTLE, WA, 98134

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline