Navy Awards $56.3M DDG 51 Ship Maintenance Contract to Pacific Shipyards International
Contract Overview
Contract Amount: $56,323,945 ($56.3M)
Contractor: Pacific Shipyards International, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-29
End Date: 2024-05-31
Contract Duration: 1,128 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: DDG 51 PSA AT PEARL HARBOR AWARD
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $56.3 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC for work described as: DDG 51 PSA AT PEARL HARBOR AWARD Key points: 1. Contract awarded for DDG 51 class destroyer maintenance at Pearl Harbor. 2. Pacific Shipyards International, LLC is the contractor. 3. The contract is a Cost Plus Award Fee type. 4. This award falls under the Ship Building and Repairing NAICS code. 5. The contract duration is 1128 days.
Value Assessment
Rating: good
The contract type (Cost Plus Award Fee) allows for flexibility in pricing based on performance. Benchmarking against similar maintenance contracts for naval vessels is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential maintenance of naval assets, ensuring operational readiness.
Public Impact
Ensures readiness of critical naval assets. Supports jobs in the shipbuilding and repair sector. Maintains the operational capability of the DDG 51 class destroyers. Impacts the local economy in Hawaii through contract work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Cost Plus Award Fee contracts require careful oversight to manage costs.
- Contract duration is substantial, requiring sustained monitoring.
Positive Signals
- Essential maintenance for naval readiness.
- Supports a key defense contractor.
- Awarded to a company located in Hawaii.
Sector Analysis
This contract falls within the shipbuilding and repair sector, which is critical for national defense. Spending benchmarks for similar naval maintenance contracts would provide further context for cost evaluation.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Robust oversight is crucial for Cost Plus Award Fee contracts to ensure cost control and performance.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus structure.
- Limited competition may reduce cost-saving incentives.
- Long contract duration requires sustained oversight.
- Dependence on a single contractor for critical maintenance.
Tags
ship-building-and-repairing, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.3 million to PACIFIC SHIPYARDS INTERNATIONAL, LLC. DDG 51 PSA AT PEARL HARBOR AWARD
Who is the contractor on this award?
The obligated recipient is PACIFIC SHIPYARDS INTERNATIONAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $56.3 million.
What is the period of performance?
Start: 2021-04-29. End: 2024-05-31.
What is the historical cost performance of Pacific Shipyards International on similar contracts?
Historical cost performance data for Pacific Shipyards International on comparable naval maintenance contracts would be valuable. Analyzing past projects can reveal trends in cost overruns or savings, providing insight into the contractor's efficiency and reliability in managing complex maintenance tasks and adherence to budget constraints.
How does the pricing structure of this Cost Plus Award Fee contract compare to fixed-price contracts for similar services?
Cost Plus Award Fee contracts offer flexibility but can be less predictable in final cost compared to fixed-price agreements. A comparison would involve analyzing the base cost plus potential award fees against the total cost of a fixed-price bid for equivalent maintenance scope. This helps determine if the potential for higher costs is justified by improved performance or specific project needs.
What are the key performance metrics used to determine the award fee in this contract?
The key performance metrics for the award fee are critical for understanding how contractor performance is measured and incentivized. These typically include factors like schedule adherence, quality of work, safety compliance, and responsiveness to government needs. Understanding these metrics is essential for assessing the effectiveness of the contract in achieving desired outcomes.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002420R2310
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 705 N NIMITZ HWY, HONOLULU, HI, 96817
Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,507,284
Exercised Options: $58,507,284
Current Obligation: $56,323,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-29
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2024-09-26
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