DoD Awards $311.8M Contract for Ceiling Holders to Bath Iron Works, Raising Oversight Concerns
Contract Overview
Contract Amount: $311,801,315 ($311.8M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2026-07-31
Contract Duration: 729 days
Daily Burn Rate: $427.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: CEILING HOLDER
Place of Performance
Location: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $311.8 million to BATH IRON WORKS CORPORATION for work described as: CEILING HOLDER Key points: 1. Significant contract value of $311.8 million for ceiling holders. 2. Bath Iron Works Corporation, a major defense contractor, is the awardee. 3. The contract was not competed, raising questions about price discovery and value. 4. The sector is Ship Building and Repairing, indicating specialized industrial needs.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific details on the ceiling holders' complexity and quantity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition for a substantial contract value may result in taxpayers paying more than necessary for these ceiling holders.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense is procuring essential components for shipbuilding. The long contract duration of 729 days suggests a sustained need. The award to a large corporation raises questions about small business participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Large contract value for seemingly simple item
Positive Signals
- Award to established defense contractor
- Clear contract end date
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is characterized by large, complex projects and specialized industrial capabilities. Spending in this sector is often driven by national security needs and can involve significant investment.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Given the large contract value, there's a missed opportunity to support small businesses in the supply chain.
Oversight & Accountability
The 'NOT COMPETED' status and Cost Plus Award Fee structure warrant close oversight to ensure fair pricing and prevent cost overruns. The Department of the Navy must ensure robust performance monitoring.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Missed opportunity for small business engagement
- High contract value for potentially simple components
Tags
ship-building-and-repairing, department-of-defense, me, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $311.8 million to BATH IRON WORKS CORPORATION. CEILING HOLDER
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 $311.8 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-07-31.
What is the specific nature and complexity of these 'ceiling holders' to justify a $311.8 million sole-source contract?
Without detailed specifications, it's difficult to ascertain the complexity. However, for such a significant sum, these ceiling holders likely involve highly specialized materials, stringent military-grade certifications, or integration into complex naval systems. Further justification from the DoD is needed to understand the unique requirements driving this non-competitive award and its necessity.
What are the potential cost risks associated with a Cost Plus Award Fee contract for non-competed items?
Cost Plus Award Fee contracts carry inherent risks of cost escalation, especially when competition is absent. The contractor is reimbursed for allowable costs plus an award fee based on performance. Without competitive pressure, there's less incentive for the contractor to minimize costs, and the government may end up paying a premium if oversight and performance metrics are not rigorously managed.
How effectively does this contract serve the Department of the Navy's shipbuilding needs given the procurement method?
While the contract ensures a supplier for ceiling holders, the sole-source nature raises questions about its overall effectiveness in achieving best value. The lack of competition suggests potential inefficiencies in the procurement process or a failure to identify alternative suppliers. This could impact the Navy's ability to secure components at optimal prices, potentially diverting funds from other critical shipbuilding requirements.
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: N0002424R4212
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 700 WASHINGTON ST, BATH, ME, 04530
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $955,947,666
Exercised Options: $458,017,657
Current Obligation: $311,801,315
Actual Outlays: $3,997,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-01
Current End Date: 2026-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2026-01-15
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