Navy Awards $251M Ship Repair Contract to Bath Iron Works, Sole-Source
Contract Overview
Contract Amount: $251,108,707 ($251.1M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Defense
Start Date: 2005-11-08
End Date: 2011-12-31
Contract Duration: 2,244 days
Daily Burn Rate: $111.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $251.1 million to BATH IRON WORKS CORPORATION for work described as: Key points: 1. The contract value is $251.1 million. 2. Bath Iron Works Corporation is the sole contractor. 3. The contract was not competed, raising potential value concerns. 4. This falls under the Shipbuilding and Repairing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning it was not competed. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these shipbuilding and repair services.
Public Impact
Significant taxpayer funds allocated to a single, non-competed contract. Potential for reduced innovation and efficiency due to lack of market pressure. Impact on the shipbuilding and repair industry's competitive landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long duration (2244 days)
Positive Signals
- Awarded to a known entity (Bath Iron Works)
Sector Analysis
This contract is within the shipbuilding and repair sector, which is critical for national defense. Spending benchmarks for this sector can vary widely based on ship type and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Bath Iron Works Corporation is a large entity. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets contract requirements. Accountability for cost overruns in a cost-plus contract is crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Long contract duration may indicate scope creep or inefficiencies
Tags
ship-building-and-repairing, department-of-defense, me, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $251.1 million to BATH IRON WORKS CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BATH IRON WORKS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $251.1 million.
What is the period of performance?
Start: 2005-11-08. End: 2011-12-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without further details, it's impossible to assess if this justification was sound and if it truly served the government's best interest over a competitive process.
How were costs controlled and justified under the Cost Plus Award Fee structure?
Cost Plus Award Fee contracts require robust government oversight to manage costs and incentivize performance. The agency must have mechanisms in place to review incurred costs, determine award fees based on performance metrics, and ensure the total cost remained reasonable and allocable to the contract.
What was the overall effectiveness of Bath Iron Works in fulfilling the contract requirements?
Effectiveness would be measured against the performance metrics defined in the contract and the award fee structure. Without access to performance reports or award fee determinations, it's difficult to assess the contractor's effectiveness. However, the long duration and significant value suggest a substantial scope of work.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 700 WASHINGTON ST, BATH, ME, 01
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-11-08
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2014-09-24
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