Navy Awards $16.2M Contract for USNS SIMANEK Post Shakedown Availability to Detyens Shipyards

Contract Overview

Contract Amount: $16,209,021 ($16.2M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-18

End Date: 2026-01-31

Contract Duration: 105 days

Daily Burn Rate: $154.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USNS SIMANEK FY26 POST SHAKEDOWN AVAILIBILITY (PSA)

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to DETYENS SHIPYARDS INC for work described as: USNS SIMANEK FY26 POST SHAKEDOWN AVAILIBILITY (PSA) Key points: 1. The contract value of $16.2 million addresses a critical need for ship maintenance and repair. 2. Detyens Shipyards Inc. secured the award through a competitive process, indicating potential for good value. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. This award falls within the Ship Building and Repairing sector, a vital component of national defense.

Value Assessment

Rating: good

The $16.2 million price appears reasonable for a post-shakedown availability, which involves extensive testing and correction of deficiencies. Benchmarking against similar complex ship repair contracts would provide a more precise assessment, but the competitive award suggests a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific reason for limiting the initial pool of bidders, possibly due to specialized capabilities or prior work. This method can sometimes lead to higher prices if competition is artificially constrained.

Taxpayer Impact: The competitive nature, even if limited, aims to secure a fair price for taxpayers. However, the exclusion of sources warrants scrutiny to ensure maximum value was obtained.

Public Impact

Ensures the operational readiness of the USNS SIMANEK, a critical asset for naval operations. Supports the shipbuilding and repair industry, contributing to economic activity and skilled job creation. Maintains the Navy's capability to project power and respond to global security challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted price discovery.
Potential for scope creep in post-shakedown availability work.
Dependence on a single contractor for critical repairs.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a known entity with experience in ship repair.
Addresses a necessary maintenance requirement for fleet readiness.

Sector Analysis

The shipbuilding and repair sector is capital-intensive and requires specialized expertise. Spending benchmarks in this area are highly variable, depending on the complexity and scope of the vessel and the required work. This contract addresses a specific, critical maintenance phase.

Small Business Impact

The data indicates this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large contract would be necessary to assess their participation.

Oversight & Accountability

The award process, including the exclusion of sources, should be reviewed for compliance and fairness. Ongoing monitoring of contract performance and expenditures is crucial to ensure taxpayer funds are used effectively and efficiently.

Related Government Programs

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

Risk Flags

Potential for limited competition to inflate costs.
Risk of unforeseen issues arising during post-shakedown work.
Contract duration is relatively short, requiring efficient execution.
Dependence on a single contractor for critical repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to DETYENS SHIPYARDS INC. USNS SIMANEK FY26 POST SHAKEDOWN AVAILIBILITY (PSA)

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 $16.2 million.

What is the period of performance?

Start: 2025-10-18. End: 2026-01-31.

What specific factors led to the exclusion of sources in this full and open competition, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary, limiting the eligible bidder pool. While this can streamline the process for specialized needs, it may reduce price competition. A thorough review of the justification for exclusion and a comparison of the awarded price against pre-negotiation objectives or independent cost estimates would reveal the extent of any price impact.

What are the key performance indicators (KPIs) for this contract, and how will the Navy ensure the quality and timeliness of the post-shakedown availability work?

Key performance indicators likely include adherence to the schedule (delivery by January 31, 2026), completion of all specified repair and correction tasks, and meeting stringent quality standards for naval vessels. The Navy will likely employ contract officers, quality assurance representatives, and potentially third-party inspectors to monitor progress, verify work quality, and ensure all contractual obligations are met.

How does this $16.2 million investment align with the Navy's long-term fleet readiness and shipbuilding strategy?

This contract represents a necessary investment in maintaining the operational readiness of an existing asset, the USNS SIMANEK. While not directly related to new shipbuilding, ensuring the longevity and effectiveness of current vessels is fundamental to the Navy's overall fleet strategy. Post-shakedown availabilities are critical for resolving issues identified during initial operations, preventing larger, more costly problems later.

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: N3220525R4082

Offers Received: 1

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: $17,475,896

Exercised Options: $16,209,021

Current Obligation: $16,209,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline