Navy Awards $18.8M for USNS LEROY GRUMMAN Midterm Availability and Drydocking in FY25

Contract Overview

Contract Amount: $18,862,131 ($18.9M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-18

End Date: 2025-08-01

Contract Duration: 501 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USNS LEROY GRUMMAN (T-AO 195) MIDTERM AVAILABILITY AND DRYDOCKING FISCAL YEAR 25

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to DETYENS SHIPYARDS INC for work described as: USNS LEROY GRUMMAN (T-AO 195) MIDTERM AVAILABILITY AND DRYDOCKING FISCAL YEAR 25 Key points: 1. Contract awarded to DETYENS SHIPYARDS INC for essential ship maintenance. 2. The contract is a Firm Fixed Price type, indicating clear cost expectations. 3. Competition was Full and Open after exclusion of sources, suggesting a deliberate selection process. 4. This expenditure falls under the Ship Building and Repairing sector, crucial for naval readiness.

Value Assessment

Rating: good

The $18.86 million award for a midterm availability and drydocking appears reasonable given the scope of work for a T-AO class vessel. Benchmarking against similar complex ship repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition after Exclusion of Sources,' indicating that while open to all, specific sources were initially excluded, potentially for specialized capabilities. This method aims for competitive pricing while ensuring necessary expertise.

Taxpayer Impact: Taxpayer funds are being utilized for essential maintenance of a naval asset, ensuring its operational readiness and longevity, which is a necessary investment for national defense.

Public Impact

Ensures the operational readiness of the USNS LEROY GRUMMAN, a critical logistics support vessel. Supports the shipbuilding and repair industry, contributing to the maritime industrial base. Maintains the Navy's capability to project power and conduct operations globally. The contract duration of 501 days highlights the extensive nature of the required maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during drydocking.
Dependence on a single contractor for a critical maintenance period.

Positive Signals

Firm Fixed Price contract limits cost uncertainty for the government.
Full and open competition, even with exclusions, generally drives competitive pricing.
Midterm availability is a planned maintenance event, indicating proactive asset management.

Sector Analysis

This contract falls within the Ship Building and Repairing sector (NAICS 336611), which is vital for maintaining the U.S. Navy's fleet. Spending in this sector is directly tied to naval modernization, readiness, and sustainment efforts.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses for this contract. Further analysis would be needed to determine if small businesses were subcontracted by DETYENS SHIPYARDS INC.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for ship repair contracts, including quality inspections and progress monitoring, are expected to be in place.

Related Government Programs

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

Risk Flags

Contract awarded to a single entity.
Potential for unforeseen issues in complex ship repair.
Competition method involved source exclusion.
Firm Fixed Price contracts can sometimes lead to contractor claims for changes.
Long contract duration (501 days) increases exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to DETYENS SHIPYARDS INC. USNS LEROY GRUMMAN (T-AO 195) MIDTERM AVAILABILITY AND DRYDOCKING FISCAL YEAR 25

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 $18.9 million.

What is the period of performance?

Start: 2024-03-18. End: 2025-08-01.

What is the historical cost performance of DETYENS SHIPYARDS INC on similar naval repair contracts?

Analyzing DETYENS SHIPYARDS INC's past performance on comparable contracts is crucial for assessing value. Reviewing their track record for cost adherence, schedule management, and quality of work on previous Navy availabilities and drydockings can reveal patterns of efficiency or potential risks. This historical data provides a benchmark against which the current $18.86 million award can be more accurately evaluated for fairness and competitiveness.

What specific exclusions were made in the 'Full and Open Competition after Exclusion of Sources' and why?

Understanding the specific exclusions in the competition is key to evaluating the integrity of the process and potential impact on price. Were certain shipyards excluded due to lack of specialized equipment, security clearances, or past performance issues? Clarifying the rationale behind these exclusions helps determine if they were justified to ensure specialized capabilities or if they potentially limited competition, thereby affecting price discovery and overall value for the taxpayer.

How does the scope of work for this midterm availability compare to previous availabilities for similar T-AO class vessels?

Comparing the scope of work for this $18.86 million contract to previous availabilities of similar T-AO class vessels is essential for assessing effectiveness and value. A detailed breakdown of planned maintenance, repairs, and upgrades is needed. If the scope is significantly larger or more complex than historical norms, the current cost may be justified. Conversely, if it's standard, the price warrants closer scrutiny for potential inefficiencies or overestimation.

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: N3220524R4109

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Detyens Shipyards, Inc.

Address: 1670 DRYDOCK AVE BIDG 236, N 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: $19,090,006

Exercised Options: $18,862,131

Current Obligation: $18,862,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline