Navy awards $30.8M contract for USNS Patuxent repair, highlighting shipbuilding and repair sector activity

Contract Overview

Contract Amount: $30,803,628 ($30.8M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2020-05-20

End Date: 2020-12-23

Contract Duration: 217 days

Daily Burn Rate: $142.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BONNEMA, N104-A1 PM1 USNS PATUXENT (T-AO 201) FY20 ROH/DD

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to DETYENS SHIPYARDS INC for work described as: BONNEMA, N104-A1 PM1 USNS PATUXENT (T-AO 201) FY20 ROH/DD Key points: 1. Contract awarded for Fiscal Year 2020 Rolling/Dry Dock maintenance. 2. Detyens Shipyards Inc. secured the award, indicating a competitive landscape for naval vessel upkeep. 3. The contract type is Firm Fixed Price, suggesting predictable costs for the government. 4. The duration of the contract was 217 days, indicating a significant maintenance period. 5. The award falls under the Shipbuilding and Repairing NAICS code, a key industrial sector. 6. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a deliberate selection process.

Value Assessment

Rating: good

The contract value of $30.8 million for the USNS Patuxent's FY20 ROH/DD appears reasonable given the scope of shipbuilding and repair work. Benchmarking against similar naval vessel maintenance contracts would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost certainty for the Department of the Navy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was open, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or past performance. The presence of two bids suggests a moderate level of competition, which generally aids in price discovery.

Taxpayer Impact: This competition level suggests that while multiple capable firms could have bid, the exclusion of some sources might have limited the ultimate number of offers, potentially impacting the lowest possible price achieved for taxpayers.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of the USNS Patuxent. Services delivered include Rolling/Dry Dock maintenance, crucial for the longevity and functionality of naval support vessels. The geographic impact is centered in South Carolina, where Detyens Shipyards Inc. is located, supporting regional industrial capacity. Workforce implications include employment opportunities for skilled labor in shipbuilding and repair within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion criteria.
Reliance on a single awardee for critical vessel maintenance.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to an established shipyard indicates capability and capacity.
Competition, even if limited, suggests some market validation of pricing.

Sector Analysis

The shipbuilding and repairing sector is a critical component of the U.S. industrial base, supporting both commercial and defense needs. This contract falls within the naval vessel maintenance sub-sector, which requires specialized facilities and expertise. Comparable spending in this area can vary significantly based on vessel type, age, and the extent of repairs required, but contracts in the tens of millions are common for major overhauls.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary awardee, Detyens Shipyards Inc., is likely a larger entity, and the contract did not prioritize direct small business engagement through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of specified services within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance Contracts
Shipbuilding and Repair Services
Defense Logistics Agency Support Vessels
Fleet Readiness Programs

Risk Flags

Potential for limited competition due to source exclusion.
Need for detailed benchmarking against similar vessel repair contracts.
Contractor's past performance on similar complex repairs should be verified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to DETYENS SHIPYARDS INC. BONNEMA, N104-A1 PM1 USNS PATUXENT (T-AO 201) FY20 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 $30.8 million.

What is the period of performance?

Start: 2020-05-20. End: 2020-12-23.

What is the historical spending pattern for USNS Patuxent (T-AO 201) Rolling/Dry Dock (ROH/DD) maintenance?

Analyzing historical spending for USNS Patuxent's ROH/DD maintenance requires access to historical contract data beyond this single award. This $30.8 million contract for FY20 represents one data point. To establish a pattern, one would need to examine awards for previous fiscal years (e.g., FY19, FY18, FY17) for similar maintenance activities on this specific vessel or comparable vessels within the T-AO class. Key metrics to track would include the frequency of such maintenance, the average cost per event, and the contractors awarded these maintenance tasks. Significant year-over-year fluctuations or consistent cost increases could indicate trends in vessel condition, repair complexity, or market pricing.

How does the awarded price of $30.8 million compare to similar naval vessel repair contracts?

Benchmarking this $30.8 million award requires identifying comparable contracts for similar naval vessels (e.g., other T-AO class ships or vessels of similar size and function) undergoing comparable maintenance (Rolling/Dry Dock). Factors influencing price include the vessel's age, specific repair requirements, shipyard location (labor costs vary), and the level of competition. If this contract represents a standard overhaul for a vessel of this type and age, the price might be considered within a typical range. However, without specific comparable data points, it's difficult to definitively assess if it represents excellent, fair, or questionable value. A higher number of bids in comparable contracts often correlates with lower prices, suggesting the 'full and open after exclusion' nature here warrants scrutiny.

What is Detyens Shipyards Inc.'s track record with similar naval contracts?

Detyens Shipyards Inc. has a history of performing work for the Department of the Navy and Military Sealift Command. Their track record with similar naval contracts, particularly for dry docking and major repairs of auxiliary ships like the T-AO class, is crucial for assessing their capability and reliability. Reviewing past performance evaluations, any contract disputes, or on-time delivery rates for previous naval contracts would provide insight. A consistent record of successful project completion suggests they are a capable contractor for this type of work. Conversely, a history of delays, cost overruns, or quality issues would raise concerns about their suitability and the potential risks associated with this award.

What are the potential risks associated with a 'Full and Open Competition after Exclusion of Sources' award?

The primary risk with 'Full and Open Competition after Exclusion of Sources' is the potential for reduced competition compared to a truly unrestricted full and open process. While intended to ensure specialized capabilities are considered, the exclusion criteria, if overly restrictive or poorly defined, could inadvertently limit the pool of qualified bidders. This reduced competition might lead to higher prices than could have been achieved otherwise, or it could mean that a less experienced, albeit qualified, bidder is overlooked. It also raises questions about the justification for excluding specific sources and whether this process truly yielded the best value for the government and taxpayers.

What is the significance of the 'FIRM FIXED PRICE' contract type for this naval repair?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it shifts the majority of the risk from the government to the contractor, Detyens Shipyards Inc. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This provides the Department of the Navy with maximum cost certainty and predictability. It incentivizes the contractor to manage their costs efficiently and perform the work within budget. However, it also means that if the contractor encounters unforeseen difficulties or cost increases, they absorb those losses, which could potentially lead them to price future bids higher to account for perceived risk.

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: N3220520R4003

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: $30,803,628

Exercised Options: $30,803,628

Current Obligation: $30,803,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline