Navy awards $27.4M for USNS LENTHALL overhaul, Detyens Shipyards Inc. secures contract

Contract Overview

Contract Amount: $27,446,425 ($27.4M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-23

End Date: 2025-10-06

Contract Duration: 197 days

Daily Burn Rate: $139.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS LENTHALL (T-AO 189) REGULAR OVERHAUL 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 $27.4 million to DETYENS SHIPYARDS INC for work described as: USNS LENTHALL (T-AO 189) REGULAR OVERHAUL AND DRYDOCKING FISCAL YEAR 25 Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The duration of the overhaul is 197 days, aligning with typical drydocking schedules. 4. The North American Industry Classification System (NAICS) code 336611 suggests a focus on shipbuilding and repairing. 5. The contract value of $27.4 million is a significant investment in naval readiness. 6. The award was made by the Department of the Navy, a key component of the Department of Defense.

Value Assessment

Rating: good

The contract value of $27.4 million for a regular overhaul and drydocking of a naval vessel appears reasonable given the scope of work. Benchmarking against similar overhauls for vessels of this class would provide a more precise value assessment. The firm-fixed-price structure helps manage cost risks for the government. Without specific details on the scope of work beyond 'overhaul and drydocking,' a definitive value-for-money assessment is challenging, but the competitive nature of the award suggests a fair price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, specific sources may have been excluded for defined reasons. The presence of 4 bidders indicates a degree of competition. The exclusion of sources, if justified and documented, should not significantly hinder price discovery, but it warrants scrutiny to ensure it did not unduly limit the competitive landscape.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and improving service quality.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the operational readiness of the USNS LENTHALL (T-AO 189). The services delivered include regular overhaul and drydocking, essential for maintaining the structural integrity and operational capability of the vessel. The geographic impact is centered in South Carolina, where Detyens Shipyards Inc. is located, potentially creating or sustaining local jobs in the maritime repair sector. Workforce implications include employment opportunities for skilled tradespeople in shipbuilding and repair within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if the exclusion of sources was overly broad.
Risk of cost overruns if unforeseen issues arise during the overhaul, despite the firm-fixed-price contract.
Dependence on a single contractor for a critical maintenance task.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through a competitive process, suggesting a fair market price.
Contract duration is defined, allowing for clear project management.
The vessel is essential for logistical support, and its maintenance ensures continued operational capability.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the defense industrial base, supporting naval operations and national security. This contract falls within the broader defense sector, specifically focusing on vessel maintenance and repair. The market for naval ship repair is specialized, with a limited number of qualified shipyards capable of undertaking complex overhauls and drydocking. Spending in this area is driven by the need to maintain a ready fleet, with contracts often being large and complex.

Small Business Impact

The data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within the scope of the overhaul, but this is not explicitly detailed in the provided information. The overall impact on the small business ecosystem is likely minimal unless Detyens Shipyards Inc. actively engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance and Repair
Shipbuilding and Repair Contracts
Defense Logistics Support Vessels
Department of Defense Ship Overhaul Programs

Risk Flags

Potential for scope creep if unforeseen issues arise during overhaul.
Contractor's ability to meet schedule and quality requirements.
Adequacy of competition given potential source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to DETYENS SHIPYARDS INC. USNS LENTHALL (T-AO 189) 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 $27.4 million.

What is the period of performance?

Start: 2025-03-23. End: 2025-10-06.

What is the historical spending pattern for the USNS LENTHALL (T-AO 189) for similar overhaul and drydocking services?

Analyzing historical spending for the USNS LENTHALL (T-AO 189) requires access to detailed contract databases. However, typical naval vessel overhauls are periodic, occurring every few years, and their costs can fluctuate based on the extent of work required, market conditions for repair services, and the specific shipyard chosen. Without prior contract data for this specific vessel, it's difficult to establish a precise historical spending pattern. Generally, such major maintenance events represent significant, but infrequent, expenditures. The current award of $27.4 million should be compared to previous awards for similar vessels or this vessel if available, to assess if it represents an increase or decrease in cost over time, potentially influenced by inflation, scope changes, or competitive pressures.

How does the number of bidders (4) compare to the average number of bidders for similar naval vessel overhaul contracts?

The presence of 4 bidders for this naval vessel overhaul contract suggests a moderately competitive environment. For specialized services like ship repair, particularly for large naval vessels, the number of qualified bidders can often be limited due to the technical expertise, facilities, and security clearances required. While a higher number of bidders generally indicates stronger competition, 4 bidders is not uncommon in this sector. To provide a more precise comparison, one would need to benchmark this against a dataset of similar contracts (e.g., by vessel type, size, and scope of work) awarded by the Department of the Navy or other military branches. If the average for comparable contracts is significantly higher, it might suggest factors that limited participation in this instance, potentially impacting price discovery.

What specific exclusions were made in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and what is the justification?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the solicitation was publicly advertised, certain potential sources were intentionally excluded from bidding. The specific reasons for exclusion are typically documented in the contract file and can include factors such as a lack of required technical capabilities, failure to meet pre-qualification criteria, past performance issues, or specific national security requirements that limit the pool of eligible contractors. Without access to the detailed contract file or agency justifications, the precise exclusions and their rationale remain unknown. However, for such exclusions to be permissible, they must be well-documented and justified under federal acquisition regulations to ensure fair and open competition to the maximum extent practicable.

What are the potential risks associated with a firm-fixed-price contract for a complex vessel overhaul?

While firm-fixed-price (FFP) contracts are favored for providing cost certainty, they carry inherent risks for the contractor, which can indirectly affect the government. For a complex vessel overhaul, the primary risk is that unforeseen issues discovered during the drydocking and repair process (e.g., hidden structural damage, obsolescence of systems requiring upgrades) could significantly increase the contractor's costs beyond what was anticipated in their fixed price. If the contractor underestimated these risks, they might seek to cut corners on quality to maintain profitability, potentially impacting the vessel's long-term reliability. Conversely, if the government requires significant changes or additions to the scope of work, contract modifications will be necessary, potentially increasing the overall cost and schedule. Robust technical specifications and contingency planning are crucial to mitigate these risks.

How does the North American Industry Classification System (NAICS) code 336611 relate to the services provided under this contract?

The North American Industry Classification System (NAICS) code 336611, 'Ship Building and Repairing,' directly aligns with the services described for the USNS LENTHALL (T-AO 189) contract, which involves 'REGULAR OVERHAUL AND DRYDOCKING.' This code encompasses establishments primarily engaged in building, repairing, and converting ships and boats. Activities typically include constructing, rebuilding, and repairing ships, barges, and other waterborne vessels, as well as fabricating ship sections and components. Therefore, Detyens Shipyards Inc., operating under this NAICS code, possesses the industry classification and likely the facilities and expertise necessary to perform the required overhaul and drydocking services for the naval vessel.

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: N3220524R4144

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: $28,019,675

Exercised Options: $27,446,425

Current Obligation: $27,446,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline