DoD's Bath Iron Works Awarded $276M for Ship Building and Repair Continuation
Contract Overview
Contract Amount: $275,989,543 ($276.0M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2014-10-16
Contract Duration: 2,208 days
Daily Burn Rate: $125.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: A CONTINUATION OF N0002406C2305 FOR FUNDING PURPOSES ONLY TO ALLOW THE USE OF NEW ACRNS FOR CLINS 0301 THRU 0306 AND 0401 THRU 0406.
Place of Performance
Location: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $276.0 million to BATH IRON WORKS CORPORATION for work described as: A CONTINUATION OF N0002406C2305 FOR FUNDING PURPOSES ONLY TO ALLOW THE USE OF NEW ACRNS FOR CLINS 0301 THRU 0306 AND 0401 THRU 0406. Key points: 1. Significant contract value of $276 million for ship building and repair. 2. Awarded to Bath Iron Works Corporation, a major defense contractor. 3. Potential risk associated with continuation funding and use of new ACRNs. 4. Spending falls within the Ship Building and Repair sector.
Value Assessment
Rating: fair
The contract value of $275,989,543 is substantial. Without specific pricing details or benchmarks for similar ship building and repair contracts, it's difficult to definitively assess its value. However, the 'COST PLUS AWARD FEE' structure suggests potential for cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED', indicating a limited competition scenario. This approach may limit price discovery and potentially lead to higher costs compared to a fully competed contract. The use of new ACRNs for specific CLINs suggests a modification or extension rather than a new procurement.
Taxpayer Impact: The lack of full and open competition raises concerns about taxpayer impact, as it may not secure the best possible price for the services rendered.
Public Impact
Impacts the shipbuilding industry and associated supply chains. Ensures continued operations and maintenance for naval assets. Potential for job creation and economic activity in Maine.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Not Competed
- Cost Plus Award Fee contract type
- Continuation of existing contract with new ACRNs
Positive Signals
- Supports critical defense capabilities
- Long-term contract duration
Sector Analysis
This contract falls under the Ship Building and Repair sector, which is a significant area of defense spending. Benchmarks for this sector are highly variable due to the complexity and scale of naval construction and repair projects.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large defense contracts like this often involve extensive subcontracting, which may provide opportunities for small businesses within the supply chain.
Oversight & Accountability
The 'AWARDED BY DCA' suggests oversight from the Defense Contract Audit Agency or a similar body. However, the 'NOT COMPETED' nature warrants close scrutiny to ensure fair pricing and effective execution.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Not Competed
- Cost Plus Award Fee contract type
- Potential for cost overruns
- Lack of detailed justification for limited competition
- Use of new ACRNs for existing CLINs
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 $276.0 million to BATH IRON WORKS CORPORATION. A CONTINUATION OF N0002406C2305 FOR FUNDING PURPOSES ONLY TO ALLOW THE USE OF NEW ACRNS FOR CLINS 0301 THRU 0306 AND 0401 THRU 0406.
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 $276.0 million.
What is the period of performance?
Start: 2008-09-29. End: 2014-10-16.
What is the justification for not competing this contract, and how does it ensure value for taxpayer money?
The justification for not competing this contract is not provided in the data. Typically, sole-source or limited competition is used when only one source can meet the requirement, or for follow-on work to an existing contract. Without this justification, it's difficult to assess if value for taxpayer money is being maximized. Further review of the contract file and justification for other than full and open competition is recommended.
What are the specific risks associated with using new ACRNs for existing CLINs, and how are they being mitigated?
Using new ACRNs (Accounting Classification Reference Numbers) for existing CLINs (Contract Line Item Numbers) can introduce risks related to tracking, reporting, and financial management if not properly implemented. Potential risks include misallocation of funds, inaccurate cost reporting, and audit challenges. Mitigation strategies would involve clear communication, updated financial systems, and rigorous internal controls to ensure accurate tracking and reporting of expenditures against the new ACRNs.
How does the 'COST PLUS AWARD FEE' structure impact the government's ability to control costs and ensure effective performance?
The 'COST PLUS AWARD FEE' (CPAF) structure allows the contractor to recover allowable costs plus an award fee based on performance against defined criteria. This can incentivize contractors to meet or exceed performance targets. However, it also places a significant burden on the government to establish objective performance metrics and diligently monitor contractor performance to ensure the award fee is earned appropriately and that overall costs remain controlled.
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
Solicitation ID: N0002405R2305
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, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $278,282,380
Exercised Options: $278,259,358
Current Obligation: $275,989,543
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-29
Current End Date: 2014-10-16
Potential End Date: 2014-10-16 00:00:00
Last Modified: 2015-03-09
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