Navy Awards $25.5M Contract for USNS Kanawha Overhaul to Detyens Shipyards
Contract Overview
Contract Amount: $25,524,660 ($25.5M)
Contractor: Detyens Shipyards Inc
Awarding Agency: Department of Defense
Start Date: 2025-02-13
End Date: 2025-07-01
Contract Duration: 138 days
Daily Burn Rate: $185.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USNS KANAWHA (T-AO 196) REGULAR OVERHAUL AND DRYDOCKING-FISCAL YEAR 25
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Defense obligated $25.5 million to DETYENS SHIPYARDS INC for work described as: USNS KANAWHA (T-AO 196) REGULAR OVERHAUL AND DRYDOCKING-FISCAL YEAR 25 Key points: 1. The contract covers regular overhaul and drydocking for the USNS Kanawha (T-AO 196). 2. Detyens Shipyards Inc. secured the award under full and open competition. 3. The firm fixed-price contract aims to ensure the vessel's operational readiness. 4. This spending supports the shipbuilding and repairing sector, specifically naval vessel maintenance.
Value Assessment
Rating: good
The contract value of $25.5M for a regular overhaul and drydocking appears reasonable given the scope of work for a naval 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 was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential naval maintenance.
Public Impact
Ensures the operational readiness of a critical naval support ship. Supports maritime infrastructure and the defense industrial base. Contributes to the economic activity within the shipbuilding and repair industry. Maintains the U.S. Navy's global presence and operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen structural issues arise during drydocking.
- Dependence on a single contractor for a critical maintenance task.
Positive Signals
- Firm fixed-price contract limits cost uncertainty.
- Competitive award process suggests favorable pricing.
- Clear scope of work for overhaul and drydocking.
Sector Analysis
This contract falls within the shipbuilding and repairing sector, specifically for naval vessel maintenance. Spending in this area is crucial for maintaining fleet readiness and supporting the defense industrial base. Benchmarks for similar overhauls vary widely based on vessel class and complexity.
Small Business Impact
While the primary award went to Detyens Shipyards Inc., the contract's execution may involve subcontracting opportunities for small businesses in specialized repair, supply, or logistics services within the maritime industry.
Oversight & Accountability
The Department of the Navy's oversight is critical to ensure the contractor adheres to the contract terms, quality standards, and delivery schedule for the overhaul. Regular progress reviews and inspections are standard procedures.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is relatively short for a major overhaul.
- Potential for scope creep if additional issues are discovered.
- Reliance on a single awardee for a critical maintenance function.
- Geographic concentration of the awardee.
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 $25.5 million to DETYENS SHIPYARDS INC. USNS KANAWHA (T-AO 196) REGULAR OVERHAUL 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 $25.5 million.
What is the period of performance?
Start: 2025-02-13. End: 2025-07-01.
What specific maintenance tasks are included in the 'regular overhaul and drydocking' to justify the $25.5M cost?
The contract likely includes hull inspection and repair, propulsion system maintenance, auxiliary machinery servicing, tank cleaning, painting, and safety equipment checks. Specifics would be detailed in the contract's Statement of Work (SOW), which outlines all required tasks to ensure the vessel meets operational standards and regulatory compliance.
What are the potential risks associated with the 'full and open competition after exclusion of sources' method?
While aiming for competition, excluding sources might limit the pool of qualified bidders, potentially impacting the final price or availability of specialized expertise. The justification for exclusion needs to be robust to ensure true market competition was sought before narrowing the field.
How effectively does this contract contribute to the long-term readiness and cost-efficiency of the naval fleet?
This contract is essential for maintaining the USNS Kanawha's operational readiness, preventing costly emergent repairs and extending its service life. A well-executed overhaul ensures the vessel can reliably support fleet operations, contributing to overall naval effectiveness and potentially reducing lifecycle costs through preventative maintenance.
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: N3220524R4113
Offers Received: 3
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: $25,701,367
Exercised Options: $25,524,660
Current Obligation: $25,524,660
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-13
Current End Date: 2025-07-01
Potential End Date: 2025-07-01 00:00:00
Last Modified: 2025-07-24
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