Navy awards $29.4M contract for USNS Laramie maintenance to Detyens Shipyards

Contract Overview

Contract Amount: $29,380,579 ($29.4M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-31

End Date: 2021-11-19

Contract Duration: 233 days

Daily Burn Rate: $126.1K/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: N104A1 - S. JEWELL - PM1 - USNS LARAMIE ROH

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to DETYENS SHIPYARDS INC for work described as: N104A1 - S. JEWELL - PM1 - USNS LARAMIE ROH Key points: 1. Contract value of $29.4M for ship maintenance. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of cost overruns or schedule delays exists. 4. Sector is Ship Building and Repair.

Value Assessment

Rating: good

The contract value of $29.4M appears reasonable for the scope of work, which includes ship maintenance. Benchmarking against similar naval vessel repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'Full and Open Competition After Exclusion of Sources', indicating some initial limitations but ultimately allowing broad participation. This method aims for competitive pricing while addressing specific source requirements.

Taxpayer Impact: The competitive process is designed to ensure taxpayer funds are used efficiently for necessary defense services.

Public Impact

Ensures readiness of a key naval asset (USNS Laramie). Supports maritime logistics and defense capabilities. Impacts the shipbuilding and repair industry in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep impacting final cost.
Dependence on a single contractor for this specific award.
Schedule adherence challenges in complex ship repair.

Positive Signals

Firm Fixed Price contract type limits cost uncertainty.
Definitive contract provides clear scope for the work.
Awarded to a company with experience in ship repair.

Sector Analysis

The shipbuilding and repair sector is critical for national defense, involving specialized skills and facilities. Spending benchmarks vary widely based on vessel type and complexity of work.

Small Business Impact

While Detyens Shipyards Inc. is the prime contractor, the extent of small business subcontracting is not detailed in this award notice. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' suggests a structured procurement process. Oversight would focus on contract performance, adherence to specifications, and financial management.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Complexity of ship repair can lead to unforeseen issues.
Potential for schedule delays impacting operational readiness.
Reliance on specific technical expertise for specialized repairs.
Contract type and competition method require careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to DETYENS SHIPYARDS INC. N104A1 - S. JEWELL - PM1 - USNS LARAMIE ROH

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 $29.4 million.

What is the period of performance?

Start: 2021-03-31. End: 2021-11-19.

What specific maintenance and repair tasks were included in this $29.4M contract?

The contract details for the USNS Laramie (N104A1) likely encompass a range of maintenance and repair services, potentially including hull work, machinery upkeep, system inspections, and any necessary upgrades or replacements to ensure operational readiness. Specifics would be found in the contract statement of work.

What were the primary reasons for excluding certain sources before the 'full and open' competition phase?

Excluding sources prior to a full and open competition typically occurs when specific technical capabilities, past performance, security clearances, or unique facility requirements are necessary for the contract. This ensures that only qualified entities participate, streamlining the process while maintaining necessary standards.

How does the firm fixed price structure mitigate risks for the Department of Defense?

A Firm Fixed Price (FFP) contract shifts the risk of cost overruns to the contractor. The government agrees to pay a set price regardless of the contractor's actual costs, providing budget certainty and encouraging the contractor to manage expenses efficiently.

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: N3220520R4001

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: $29,544,051

Exercised Options: $29,380,579

Current Obligation: $29,380,579

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline