Navy Awards $23.7M Contract for USNS Arctic Overhaul to Detyens Shipyards

Contract Overview

Contract Amount: $23,700,765 ($23.7M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-07-07

End Date: 2025-12-14

Contract Duration: 160 days

Daily Burn Rate: $148.1K/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: USNS ARCTIC REGULAR OVERHAUL AND DRY-DOCKING FISCAL YEAR 2025.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to DETYENS SHIPYARDS INC for work described as: USNS ARCTIC REGULAR OVERHAUL AND DRY-DOCKING FISCAL YEAR 2025. Key points: 1. The contract covers regular overhaul and dry-docking for the USNS Arctic in FY2025. 2. Detyens Shipyards Inc. secured the award, indicating potential consolidation or specialization in the ship repair sector. 3. The firm fixed-price contract type aims to control costs, but the exclusion of sources raises questions about competition. 4. The spending falls under the Ship Building and Repairing NAICS code (336611).

Value Assessment

Rating: good

The $23.7 million price for a regular overhaul and dry-docking of a naval vessel appears reasonable given the scope of work. Benchmarking against similar complex ship repair contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, certain sources were excluded. This method can impact price discovery and potentially limit the number of competitive bids received.

Taxpayer Impact: The firm fixed-price nature of the contract helps protect taxpayers from cost overruns, assuming the initial price was competitive.

Public Impact

Ensures operational readiness of a key naval asset through essential maintenance. Supports the maritime industrial base, specifically ship repair capabilities. Potential impact on regional employment in South Carolina where Detyens Shipyards is located. Transparency concerns may arise due to the exclusion of certain sources in the competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for price escalation if excluded sources offered better value.
Dependence on a single contractor for critical maintenance.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award supports a specific, necessary maintenance task for naval readiness.
Contract duration is defined, allowing for clear project management.

Sector Analysis

This contract falls within the shipbuilding and repair sector, which is critical for national defense and maritime commerce. Spending in this sector can be cyclical, influenced by fleet modernization, maintenance schedules, and geopolitical factors. Benchmarks are highly specific to vessel type and scope of work.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this specific contract award.

Oversight & Accountability

The contract type and award method suggest a degree of oversight in the procurement process. However, the exclusion of sources warrants further scrutiny to ensure fairness and maximize competition.

Related Government Programs

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

Risk Flags

Limited competition.
Potential lack of transparency in source exclusion.
Dependence on a single awardee for critical service.
Need for detailed cost breakdown and justification.
Risk of price not being fully optimized due to limited bids.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to DETYENS SHIPYARDS INC. USNS ARCTIC REGULAR OVERHAUL AND DRY-DOCKING FISCAL YEAR 2025.

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 $23.7 million.

What is the period of performance?

Start: 2025-07-07. End: 2025-12-14.

What was the justification for excluding specific sources from the competition, and did this exclusion significantly impact the final contract price?

The justification for excluding sources is not provided in the data. This exclusion is a critical factor that could limit competitive pressure, potentially leading to a higher price than if all qualified sources had been allowed to bid. A thorough review of the procurement documentation would be necessary to understand the rationale and assess its impact on value for money.

How does the $23.7 million cost compare to historical overhauls of similar naval vessels, and what specific services are included to justify this amount?

Without specific details on the scope of work and historical data for comparable vessels, a precise cost comparison is difficult. However, $23.7 million for a regular overhaul and dry-docking suggests a significant undertaking, likely including hull work, machinery maintenance, and system upgrades. Benchmarking against similar contracts, adjusted for inflation and vessel class, is essential for a robust value assessment.

What are the long-term implications of awarding this type of maintenance contract to a single entity, particularly if similar exclusions occur in future procurements?

Consistently excluding sources or limiting competition can lead to a less robust and potentially more expensive shipbuilding and repair market over time. It may stifle innovation and reduce the pool of qualified contractors available for future needs. This practice could concentrate market power, potentially impacting future pricing and service availability for the Department of Defense.

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: N3220525R4106

Offers Received: 2

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: $24,083,699

Exercised Options: $23,700,765

Current Obligation: $23,700,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline