Navy Awards $18.1M for USNS LARMAIE Midterm Availability to Detyens Shipyards

Contract Overview

Contract Amount: $18,121,212 ($18.1M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-26

End Date: 2025-11-08

Contract Duration: 74 days

Daily Burn Rate: $244.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS LARMAIE MIDTERM AVAILABILITY 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 $18.1 million to DETYENS SHIPYARDS INC for work described as: USNS LARMAIE MIDTERM AVAILABILITY FISCAL YEAR 2025 Key points: 1. Contract awarded for essential midterm availability of USNS LARMAIE. 2. Detyens Shipyards Inc. secured the $18.1 million contract. 3. The contract falls under the Ship Building and Repairing sector. 4. Awarded via full and open competition after exclusion of sources, indicating a specific justification for limited competition. 5. The firm fixed price contract aims to control costs for the 74-day availability.

Value Assessment

Rating: good

The $18.1 million price for a 74-day availability appears reasonable given the specialized nature of ship repair. Benchmarking against similar naval vessel availabilities would provide a more precise assessment, but the firm fixed price structure suggests an effort to establish a clear cost ceiling.

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, specific criteria limited the pool of eligible bidders. This method can sometimes lead to higher prices than unrestricted full and open competition if the exclusion significantly reduces the number of capable offerors.

Taxpayer Impact: Taxpayer funds are being used for essential maintenance of a naval asset. The competitive process, even if limited, aims to secure a fair price, but the exclusion of sources warrants scrutiny to ensure maximum value.

Public Impact

Ensures operational readiness of the USNS LARMAIE, a critical asset for naval logistics. Supports jobs and economic activity within the shipbuilding and repair sector, specifically in South Carolina. The contract's fixed-price nature provides cost certainty for the Department of the Navy. Potential impact on future contracting strategies for similar vessel availabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for cost overruns if unforeseen issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical maintenance.

Positive Signals

Awarded to a specific shipyard, potentially leveraging specialized expertise.
Firm fixed price contract provides cost predictability.
Scheduled completion within a defined timeframe.

Sector Analysis

This contract falls within the Shipbuilding and Repairing sector (NAICS 336611), which is vital for maintaining the operational capacity of the U.S. Navy's fleet. Spending in this sector is often project-specific and driven by maintenance cycles and vessel upgrades.

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 award process, particularly the 'exclusion of sources' justification, should be subject to oversight to ensure it was appropriate and did not unduly restrict competition. Post-award monitoring of performance and cost will be crucial for accountability.

Related Government Programs

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

Risk Flags

Limited competition due to exclusion of sources.
Potential for cost escalation if unforeseen issues arise.
Dependence on a single contractor for critical maintenance.
Lack of transparency regarding the specific reasons for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to DETYENS SHIPYARDS INC. USNS LARMAIE MIDTERM AVAILABILITY 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 $18.1 million.

What is the period of performance?

Start: 2025-08-26. End: 2025-11-08.

What specific technical or logistical factors necessitated the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?

The exclusion of sources typically occurs when only a limited number of contractors possess the necessary specialized skills, facilities, or security clearances required for a particular project. For naval vessel maintenance, this could involve unique repair capabilities, specific shipyard infrastructure, or classified systems requiring authorized personnel. The justification for exclusion should be documented and reviewed to ensure it aligns with procurement regulations and genuinely serves the government's best interest.

How does the $18.1 million cost compare to historical midterm availabilities for similar naval support vessels?

Benchmarking this $18.1 million contract against similar midterm availabilities for comparable naval support vessels is crucial for assessing value. Factors like vessel size, age, complexity of required repairs, and duration of the availability (74 days) need to be considered. Without historical data or industry benchmarks, it's difficult to definitively state if this price represents excellent value or is inflated due to limited competition or specific project demands.

What are the potential risks associated with a firm fixed-price contract for complex ship repair, especially given the limited competition?

A firm fixed-price contract, while offering cost certainty, carries risks if unforeseen issues arise during the 74-day availability that were not anticipated during the bidding process. If the scope of work expands significantly, the contractor may incur losses, potentially leading to disputes or requests for contract modification. Limited competition exacerbates this risk, as there may be fewer alternative contractors available to step in if issues arise with the primary awardee.

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: N3220525R4146

Offers Received: 5

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: $17,633,731

Exercised Options: $17,543,838

Current Obligation: $18,121,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline