Navy awards $19.7M contract for USNS ARCTIC ROH/DD, with a significant portion for ship repair

Contract Overview

Contract Amount: $19,684,475 ($19.7M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2014-07-18

End Date: 2014-10-15

Contract Duration: 89 days

Daily Burn Rate: $221.2K/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 ARCTIC ROH/DD

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to DETYENS SHIPYARDS INC for work described as: USNS ARCTIC ROH/DD Key points: 1. Contract value indicates substantial investment in naval readiness and infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The short duration suggests a focus on specific repair or overhaul tasks rather than a long-term program. 5. The contract falls within the shipbuilding and repairing NAICS code, aligning with industry standards. 6. The award to DETYENS SHIPYARDS INC highlights a key player in the naval repair sector.

Value Assessment

Rating: good

The contract value of approximately $19.7 million for the USNS ARCTIC ROH/DD appears reasonable for a significant ship repair and overhaul project. Benchmarking against similar naval vessel repair contracts would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The specific scope of work, which includes overhaul and repair, typically involves substantial labor and material costs, making this price point plausible within the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The presence of 2 bidders suggests a moderate level of competition for this specific contract. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: The full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it allows multiple qualified companies to bid, fostering price discovery and potentially lowering the overall cost compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of the USNS ARCTIC. The contract delivers essential ship repair and overhaul services, maintaining critical naval assets. The geographic impact is centered around the contractor's location in South Carolina, supporting regional economic activity. The contract supports skilled labor in the shipbuilding and repair industry, potentially including welders, pipefitters, and electricians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the repair process, despite the fixed-price structure.
Dependence on a single contractor for critical repair services could pose a risk if performance issues emerge.
The limited number of bidders might indicate potential barriers to entry or consolidation within the naval repair market.

Positive Signals

The fixed-price contract type provides cost certainty for the government.
The award was made through a competitive process, suggesting a reasonable selection of a qualified contractor.
The contract supports the maintenance of vital naval assets, contributing to national security readiness.

Sector Analysis

The shipbuilding and repairing sector is a critical component of the U.S. industrial base, particularly for defense. This contract falls under NAICS code 336611. The market for naval ship repair is specialized, often dominated by a few large shipyards capable of handling complex military vessels. Spending in this sector is driven by the need to maintain aging fleets and ensure operational readiness, with contracts often being substantial due to the complexity and scale of naval vessels.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on overall best value rather than specific small business goals. While there's no direct set-aside, the prime contractor, DETYENS SHIPYARDS INC, may engage small businesses for subcontracting opportunities, contributing to the broader small business ecosystem within the maritime industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Ship Repair and Maintenance
Shipbuilding and Repair Contracts
Defense Readiness Contracts
Military Sealift Command Vessels
Department of the Navy Procurement

Risk Flags

Potential for scope creep if unforeseen repair needs are identified.
Dependence on specific technical expertise within the shipyard.
Risk of schedule delays due to shipyard capacity or supply chain issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to DETYENS SHIPYARDS INC. USNS ARCTIC ROH/DD

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 $19.7 million.

What is the period of performance?

Start: 2014-07-18. End: 2014-10-15.

What is the historical spending pattern for the USNS ARCTIC ROH/DD contract over its lifecycle?

The provided data represents a single award of $19,684,474.60 for the USNS ARCTIC ROH/DD, awarded on July 18, 2014, with an end date of October 15, 2014. This suggests a specific project or period of work rather than a continuous lifecycle contract. To understand historical spending, one would need to access broader contract databases to identify previous awards for the same vessel or similar repair services. Without additional data points, it's impossible to establish a trend or pattern for this specific contract identifier over time. Future awards for this vessel or similar repair needs would be necessary to analyze historical spending.

How does the awarded amount compare to similar ship repair contracts for vessels of comparable size and age?

Comparing the $19.7 million award for the USNS ARCTIC ROH/DD requires identifying comparable contracts. Vessels like the USNS ARCTIC are typically support ships, often auxiliaries or logistics vessels, which can vary significantly in repair needs. A benchmark would involve looking at contracts for other T-AKE class ships or similar auxiliary fleet vessels undergoing major overhauls or repairs. Factors such as the specific scope of work (e.g., hull repair, propulsion system overhaul, electronics upgrades), the shipyard's location and overhead, and the prevailing market rates at the time of award are crucial. Generally, major overhauls for large naval auxiliaries can range from tens to hundreds of millions of dollars, making this $19.7 million award appear moderate, likely reflecting a specific scope of work rather than a complete life-extension overhaul.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

While specific KPIs are not detailed in the provided summary data, typical performance evaluations for ship repair contracts focus on several critical areas. These often include adherence to schedule (on-time completion), quality of workmanship (meeting specifications, minimizing rework), cost control (staying within the fixed-price budget, managing change orders), safety performance (incident rates), and compliance with contractual requirements. For a firm fixed-price contract like this, meeting the defined scope of work within the agreed price and timeframe are paramount. The Navy would likely have a quality assurance representative on-site to monitor progress and ensure adherence to technical specifications and standards.

What is the track record of DETYENS SHIPYARDS INC in fulfilling similar naval repair contracts?

DETYENS SHIPYARDS INC has a history of performing contracts for the U.S. Navy and Military Sealift Command, specializing in ship repair, maintenance, and conversion. Their track record typically includes a range of services from routine maintenance to more extensive overhauls. Analyzing their past performance would involve reviewing contract databases for awards, completion timeliness, quality ratings, and any instances of disputes or contract modifications. Companies like Detyens often build a reputation based on their ability to meet deadlines, execute complex repairs, and maintain safety standards. Their continued success in securing Navy contracts suggests a generally positive performance history, though specific project outcomes can vary.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) contract type aims to balance broad competition with specific needs. Potential risks include the initial exclusion of sources, which might inadvertently limit the pool of highly qualified bidders if the exclusion criteria are too narrow or not well-justified. While the subsequent 'full and open' phase allows more competition, the initial exclusion could still impact the diversity of bidders. Another risk is that the justification for the exclusion might be challenged, leading to protests. Furthermore, if the excluded sources were critical for specialized capabilities, the subsequent competition might not yield the best possible outcome. The process requires careful documentation and justification to mitigate these risks.

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

Solicitation ID: N3220514R2000

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1670 DRYDOCK AVE # 236, NORTH CHARLESTON, SC, 29405

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

Financial Breakdown

Contract Ceiling: $21,505,944

Exercised Options: $19,684,475

Current Obligation: $19,684,475

Contract Characteristics

Cost or Pricing Data: NO

Timeline