DoD awards $19.2M for USNS COMFORT turbine repairs to Detyens Shipyards under full and open competition
Contract Overview
Contract Amount: $19,183,347 ($19.2M)
Contractor: Detyens Shipyards Inc
Awarding Agency: Department of Defense
Start Date: 2012-11-21
End Date: 2013-07-12
Contract Duration: 233 days
Daily Burn Rate: $82.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USNS COMFORT (T-AH 20) - SSTG TURBINE REPAIRS
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Defense obligated $19.2 million to DETYENS SHIPYARDS INC for work described as: USNS COMFORT (T-AH 20) - SSTG TURBINE REPAIRS Key points: 1. The contract value of $19.2M for turbine repairs on the USNS COMFORT is a significant investment in naval readiness. 2. Detyens Shipyards Inc. secured the contract, indicating competition within the ship repair sector. 3. The 'full and open competition after exclusion of sources' clause suggests a specific justification for limited bidding, potentially impacting price discovery. 4. The sector is Ship Building and Repairing, a critical component of national defense infrastructure.
Value Assessment
Rating: fair
The contract value of $19.2M for turbine repairs appears substantial. Benchmarking against similar naval vessel repair contracts would be necessary to definitively assess its 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 deviation from standard full and open competition. This method may limit the pool of bidders and potentially affect the final price achieved.
Taxpayer Impact: Taxpayer funds are utilized for essential military asset maintenance. The specific competition method warrants scrutiny to ensure optimal value for money.
Public Impact
Ensures the operational readiness of a key naval medical asset, the USNS COMFORT. Supports critical maritime infrastructure maintenance and the shipbuilding and repair industry. Highlights the complex procurement processes within the Department of Defense for specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification requires further review.
- Lack of detailed cost breakdown for repairs.
- Potential for cost overruns if unforeseen issues arise during repair.
Positive Signals
- Contract awarded to a specific shipyard, potentially fostering specialized expertise.
- Focus on maintaining a critical medical platform for national emergencies.
Sector Analysis
The shipbuilding and repairing sector is vital for maintaining the U.S. Navy's fleet. Spending in this area is driven by vessel age, operational tempo, and strategic needs. This contract falls within typical spending for major vessel maintenance.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The 'exclusion of sources' clause in the competition method suggests a need for robust oversight to ensure the justification was valid and that the process was fair and transparent, maximizing taxpayer value.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Justification for exclusion of sources requires detailed review.
- Potential for price inflation due to limited competition.
- Lack of transparency regarding specific repair components and labor.
- Dependence on a single contractor for critical repairs.
Tags
ship-building-and-repairing, department-of-defense, sc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to DETYENS SHIPYARDS INC. USNS COMFORT (T-AH 20) - SSTG TURBINE REPAIRS
Who is the contractor on this award?
The obligated recipient is DETYENS 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 $19.2 million.
What is the period of performance?
Start: 2012-11-21. End: 2013-07-12.
What specific technical or operational factors necessitated the exclusion of certain sources, and how did this impact the final price?
The exclusion of sources typically occurs when only a limited number of contractors possess the necessary specialized skills, equipment, or security clearances for a particular project. For turbine repairs on a naval vessel, this could involve proprietary technology or unique maintenance requirements. While intended to ensure capability, this limitation can reduce competitive pressure, potentially leading to higher prices than a fully open competition might yield. A thorough review of the justification documentation is crucial.
How does the $19.2 million cost compare to similar turbine repair contracts for naval vessels of comparable size and complexity?
Benchmarking this $19.2 million cost against similar contracts is essential for assessing value. Factors like the specific turbine model, the extent of the required repairs (routine maintenance vs. major overhaul), the shipyard's location, and prevailing labor rates all influence pricing. Without comparative data, it's difficult to determine if this represents a fair market price or if potential cost efficiencies were missed due to the limited competition.
What are the long-term implications for the USNS COMFORT's operational readiness and the Navy's overall maintenance strategy given this contract?
This contract ensures the immediate operational readiness of the USNS COMFORT, a critical asset for humanitarian and military support. The successful completion of these repairs contributes to the Navy's broader maintenance strategy by keeping a key vessel functional. However, the long-term effectiveness depends on the quality of the repairs and whether the chosen procurement method for such specialized maintenance is consistently delivering optimal value and fostering innovation within the 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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1670 DRYDOCK AVE # 236, NORTH CHARLESTON, SC, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,183,347
Exercised Options: $19,183,347
Current Obligation: $19,183,347
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-21
Current End Date: 2013-07-12
Potential End Date: 2013-07-12 00:00:00
Last Modified: 2013-08-20
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