Navy Awards $30.3M Ship Repair Contract to Detyens Shipyards Inc
Contract Overview
Contract Amount: $30,346,771 ($30.3M)
Contractor: Detyens Shipyards Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2023-03-16
Contract Duration: 176 days
Daily Burn Rate: $172.4K/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: PM6,PARKER J, N104B1. USNS SUPPLY ROH/DD.
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Defense obligated $30.3 million to DETYENS SHIPYARDS INC for work described as: PM6,PARKER J, N104B1. USNS SUPPLY ROH/DD. Key points: 1. Contract awarded for ship repair services on USNS SUPPLY. 2. Detyens Shipyards Inc. secured the contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The contract type is Firm Fixed Price. 5. The duration of the contract is 176 days.
Value Assessment
Rating: good
The contract value of $30.3 million for ship repair appears reasonable given the scope of work. Benchmarking against similar naval vessel repair contracts would provide a more precise assessment.
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 competitive process but with specific exclusions. This method aims for fair pricing while potentially limiting the pool of bidders.
Taxpayer Impact: The competitive bidding process, even with exclusions, should ensure a fair price, minimizing unnecessary taxpayer expenditure for essential naval services.
Public Impact
Ensures readiness of naval assets through essential repair services. Supports maritime industry and associated jobs. Contributes to the operational capability of the USNS SUPPLY.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of source exclusions on ultimate price competitiveness.
- Scope creep risk in ship repair contracts.
Positive Signals
- Awarded under a competitive process.
- Firm Fixed Price contract limits cost overruns.
- Clear contract duration specified.
Sector Analysis
This contract falls within the shipbuilding and repairing sector, which is critical for maintaining the U.S. Navy's fleet. Spending in this sector is often driven by operational needs and vessel lifecycle management.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or subcontractors in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, suggesting oversight from a major defense agency. The 'DEFINITIVE CONTRACT' type implies a structured agreement with defined terms.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition due to source exclusions.
- Ship repair can involve unforeseen complexities leading to cost increases.
- Contract duration is relatively short for major repair work, raising questions about scope.
- Lack of small business participation data.
Tags
ship-building-and-repairing, department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to DETYENS SHIPYARDS INC. PM6,PARKER J, N104B1. USNS SUPPLY 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 $30.3 million.
What is the period of performance?
Start: 2022-09-21. End: 2023-03-16.
What specific exclusions were made in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and how did they impact the bidding landscape?
The specific exclusions are not detailed in the provided data. Typically, such exclusions might relate to specific technical capabilities, past performance requirements, or geographic limitations. Understanding these exclusions is crucial to assess whether the competition was truly maximized or if certain qualified bidders were unfairly prevented from participating, potentially affecting the final price and value achieved for the taxpayer.
What is the benchmark cost for similar ship repair services on vessels of the USNS SUPPLY's class and size?
Without access to a comprehensive database of comparable ship repair contracts, establishing a precise benchmark is challenging. However, the $30.3 million award for a 176-day repair period suggests a significant undertaking. Factors like the specific repairs needed, the age of the vessel, and the shipyard's overhead contribute to cost variations. A detailed comparison with historical data for similar naval auxiliaries would be necessary for a robust benchmark.
How effectively does the Firm Fixed Price (FFP) contract structure mitigate risks associated with potential cost overruns in ship repair?
The FFP structure is designed to transfer most of the cost overrun risk to the contractor, Detyens Shipyards Inc. This incentivizes efficient performance and cost control. However, the effectiveness can be challenged by unforeseen complexities during repair, which might lead to change orders or disputes, potentially increasing the final cost. Robust contract management and clear scope definition are key to maximizing the FFP's risk mitigation benefits.
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: N3220522R4254
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Detyens Shipyards, Inc.
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: $32,138,328
Exercised Options: $30,346,771
Current Obligation: $30,346,771
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-21
Current End Date: 2023-03-16
Potential End Date: 2023-03-16 00:00:00
Last Modified: 2023-11-18
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