DoD awards $1.95B contract for Supervisor Shipbuilding services to Bath Iron Works Corporation
Contract Overview
Contract Amount: $195,071,115 ($195.1M)
Contractor: Bath Iron Works Corporation
Awarding Agency: Department of Defense
Start Date: 1999-11-10
End Date: 2014-10-17
Contract Duration: 5,455 days
Daily Burn Rate: $35.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200012!1700!003003!BS786 !SUPERVISOR SHIPBUILDING CONVERSI!N0002499C2313 !A!*!A00005 !19991110!20090728!045953718!045953718!001381284!N!* !BATH IRON WORKS CORPORATION !700 WASHINGTON ST STOP 1 !BATH !ME!04530!03355!023!23!BATH !SAGADAHOC !MAINE !0001!+000000266000!N!N!000000000000!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !3731!3!*!*!D!B!A!*!D !U!R!1!001!N!3A!Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: BATH, SAGADAHOC County, MAINE, 04530
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $195.1 million to BATH IRON WORKS CORPORATION for work described as: 200012!1700!003003!BS786 !SUPERVISOR SHIPBUILDING CONVERSI!N0002499C2313 !A!*!A00005 !19991110!20090728!045953718!045953718!001381284!N!* !BATH IRON WORKS CORPORATION !700 WASHINGTON ST STOP 1 !BATH !ME!04530!03355!023!23!BATH !SAG… Key points: 1. The contract, valued at $1.95 billion, was awarded to Bath Iron Works Corporation. 2. This contract was not competed, raising questions about potential price discovery. 3. The primary risk lies in the lack of competition, potentially leading to inflated costs. 4. The sector is Defense, specifically shipbuilding and repair services.
Value Assessment
Rating: questionable
The contract value of $1.95 billion for supervisor shipbuilding services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition can hinder price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these shipbuilding services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract (1999-2014) suggests significant long-term investment and reliance on this provider. The contract focuses on supervisor shipbuilding, a critical but potentially high-cost area within defense procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
Positive Signals
- Award to established domestic shipyard
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the Defense sector, specifically focusing on shipbuilding and repair services. Benchmarks for such services can vary widely based on complexity and vessel type, but a lack of competition makes direct comparison difficult.
Small Business Impact
There is no explicit mention of small business participation in the provided data. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract's non-competitive nature warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management and performance is crucial given the significant taxpayer investment.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Long-term commitment without competitive validation
Tags
department-of-defense, me, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $195.1 million to BATH IRON WORKS CORPORATION. 200012!1700!003003!BS786 !SUPERVISOR SHIPBUILDING CONVERSI!N0002499C2313 !A!*!A00005 !19991110!20090728!045953718!045953718!001381284!N!* !BATH IRON WORKS CORPORATION !700 WASHINGTON ST STOP 1 !BATH !ME!04530!03355!023!23!BATH !SAGADAHOC !MAINE !0001!+000000266000!N!N!000000000000!1903!DESTROYERS !A3 !SHIPS !2SCY!DESTROYER DDG-51 !3731!3!*!*!D!B!A!*!D !U!R!
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 $195.1 million.
What is the period of performance?
Start: 1999-11-10. End: 2014-10-17.
What was the justification for not competing this significant shipbuilding contract?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards are made when only one source can fulfill the requirement, or in cases of urgent need. However, for a contract of this magnitude and duration, a thorough justification and market research should have been conducted to explore competitive options.
What are the potential risks associated with a non-competed contract of this value?
The primary risk is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, Bath Iron Works Corporation may not have had the incentive to offer the most cost-effective solution. Additionally, there's a risk of reduced innovation and less stringent performance standards compared to a competitive environment.
How can the effectiveness and value for money of this contract be assessed post-award?
Assessing effectiveness and value post-award requires robust performance metrics and ongoing monitoring. The Department of Defense should track key performance indicators related to shipbuilding timelines, quality, and cost adherence. Independent audits and comparisons with industry benchmarks, where possible, can help evaluate if the services provided met expectations and represented a reasonable use of funds.
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
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-11-10
Current End Date: 2014-10-17
Potential End Date: 2014-10-17 00:00:00
Last Modified: 2022-09-02
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