DoD's $44.3M Ship Repair Contract Awarded to BAE Systems Hawaii Shipyards Inc

Contract Overview

Contract Amount: $44,301,290 ($44.3M)

Contractor: BAE Systems Hawaii Shipyards Inc.

Awarding Agency: Department of Defense

Start Date: 2014-01-21

End Date: 2014-10-10

Contract Duration: 262 days

Daily Burn Rate: $169.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF TYCOM REPAIR AND ALTERATIONS

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to BAE SYSTEMS HAWAII SHIPYARDS INC. for work described as: IGF::OT::IGF TYCOM REPAIR AND ALTERATIONS Key points: 1. The contract value of $44.3M is significant for ship repair services. 2. BAE Systems Hawaii Shipyards Inc. is a major player in this sector. 3. The 'NOT COMPETED' status raises concerns about potential price inflation and lack of market testing. 4. This contract falls under the Ship Building and Repairing sector, crucial for naval readiness.

Value Assessment

Rating: questionable

The contract value of $44.3M for ship repair is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to lower bids.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these repair services.

Public Impact

Naval readiness and operational capability are directly impacted by timely and cost-effective ship repairs. Taxpayer funds are allocated for critical defense infrastructure maintenance. The award to a specific company without competition could affect the broader shipbuilding and repair market dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Positive Signals

Awarded to established company
Supports critical defense infrastructure

Sector Analysis

This contract is within the shipbuilding and repair sector, which is vital for national defense. Spending benchmarks in this area can vary widely based on the complexity and scope of repairs.

Small Business Impact

The data indicates this contract was not competed and awarded to BAE Systems Hawaii Shipyards Inc., a large entity. There is no indication of small business participation in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for avoiding a competitive process. Accountability for ensuring fair pricing in sole-source awards is crucial.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to BAE SYSTEMS HAWAII SHIPYARDS INC.. IGF::OT::IGF TYCOM REPAIR AND ALTERATIONS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS HAWAII SHIPYARDS 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 $44.3 million.

What is the period of performance?

Start: 2014-01-21. End: 2014-10-10.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would be needed to ascertain the specific justification (e.g., unique capabilities, urgent need) and verify if it met federal procurement regulations for non-competitive awards. Adequate documentation is key to ensuring accountability and preventing potential misuse of funds.

How does the $44.3M contract value compare to similar ship repair contracts awarded competitively by the Navy?

Without access to a database of comparable competitively awarded contracts for similar vessel types and repair scopes, a direct comparison is difficult. However, the absence of competition inherently raises a red flag. A benchmark analysis against historical data or industry averages for similar services would be necessary to assess if the price paid was reasonable.

What is the potential impact on future competition and pricing in the ship repair market due to this sole-source award?

Sole-source awards can stifle competition by signaling to other potential bidders that opportunities may be limited or predetermined. This can discourage market entrants and reduce the incentive for incumbent firms to offer competitive pricing on future solicitations. Over time, this could lead to higher overall costs for the government in this sector.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002414R4411

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 3049 UALENA ST STE 915, HONOLULU, HI, 96819

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,301,290

Exercised Options: $44,301,290

Current Obligation: $44,301,290

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline