Navy awards $11.18M contract for USNS Robert E. Peary mid-term availability to Detyens Shipyards

Contract Overview

Contract Amount: $11,184,378 ($11.2M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-02

End Date: 2025-10-23

Contract Duration: 51 days

Daily Burn Rate: $219.3K/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 ROBERT E. PEARY MID-TERM AVAILABILITY

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to DETYENS SHIPYARDS INC for work described as: USNS ROBERT E. PEARY MID-TERM AVAILABILITY Key points: 1. Contract value represents a significant investment in maintaining naval readiness. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. Contract duration of 51 days indicates a focused scope of work for essential repairs. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. This award aligns with broader Department of Defense efforts to sustain its fleet. 6. The specific NAICS code (336611) points to a specialized shipbuilding and repair market.

Value Assessment

Rating: good

The contract value of $11.18 million for the mid-term availability of the USNS Robert E. Peary appears reasonable given the specialized nature of ship repair and maintenance. Benchmarking against similar availability contracts for vessels of this class would provide a more precise assessment, but the firm-fixed-price structure suggests an effort to manage costs effectively. The duration of 51 days for the availability also indicates a focused scope, which can help in controlling overall expenditure.

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 that while the competition was broadly advertised, specific criteria or exclusions were applied. With 4 bidders, the competition level appears moderate, suggesting that Detyens Shipyards Inc. was selected from a pool of qualified entities. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive offers.

Taxpayer Impact: A competitive bidding process, even with exclusions, helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the U.S. Navy and the operational readiness of the USNS Robert E. Peary. The contract delivers essential maintenance and repair services to ensure the vessel's seaworthiness and functionality. The geographic impact is centered in South Carolina, where Detyens Shipyards Inc. is located, supporting local industry. This contract supports skilled labor within the shipbuilding and repair sector, contributing to the maritime workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the availability.
Dependence on the contractor's ability to meet the tight 51-day schedule.
Risk of cost overruns if the firm-fixed-price contract does not adequately account for all potential repair needs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established shipyard suggests a degree of contractor reliability.
The mid-term availability ensures the vessel remains operational for its intended mission.

Sector Analysis

The shipbuilding and repair sector (NAICS 336611) is a critical component of the defense industrial base, supporting the maintenance and construction of naval vessels. This contract falls within the broader defense sector, specifically focusing on ship maintenance and modernization. The market for such specialized services is often characterized by a limited number of highly qualified contractors capable of undertaking complex availabilities. Spending in this area is essential for maintaining fleet readiness and extending the service life of valuable assets.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (SB is false). Detyens Shipyards Inc. is likely a larger entity, given the contract value. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for small business participation in the maritime repair ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed timeframe and budget. Transparency is facilitated through contract award announcements, though detailed performance metrics and inspection reports may not be publicly available.

Related Government Programs

Naval Sea Systems Command (NAVSEA) contracts
Military Sealift Command (MSC) vessel maintenance
Shipbuilding and Repair Services
Defense Logistics Agency (DLA) support contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen repair requirements impacting cost
Contractor performance history not fully detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to DETYENS SHIPYARDS INC. USNS ROBERT E. PEARY MID-TERM AVAILABILITY

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 $11.2 million.

What is the period of performance?

Start: 2025-09-02. End: 2025-10-23.

What is the historical spending pattern for the USNS Robert E. Peary's availabilities?

Analyzing historical spending for the USNS Robert E. Peary's previous availabilities is crucial for understanding cost trends and identifying potential anomalies. Without specific historical data for this vessel, we can infer general patterns in naval vessel maintenance. Typically, such availabilities occur at regular intervals (e.g., every few years) and their costs can escalate due to aging components, increased complexity of repairs, or inflation. Comparing the current $11.18 million award to past availabilities, adjusted for inflation and scope, would reveal whether this contract represents a cost increase, decrease, or is in line with historical norms. Significant deviations might warrant further investigation into the reasons behind the change, such as unforeseen technical challenges or shifts in maintenance strategies.

How does Detyens Shipyards Inc.'s performance on similar contracts compare?

Assessing Detyens Shipyards Inc.'s past performance on comparable contracts is vital for evaluating the risk associated with this award. A review of their track record would involve examining metrics such as on-time delivery, adherence to budget, quality of work, and any history of contract disputes or performance issues. For instance, if Detyens has a history of successfully completing similar mid-term availabilities for naval vessels within schedule and budget, it suggests a lower risk profile for this contract. Conversely, a pattern of delays, cost overruns, or quality deficiencies would raise concerns about their capability to execute this specific $11.18 million award effectively. Accessing past performance evaluations from contracting officers would provide the most direct insight.

What are the key performance indicators (KPIs) for this mid-term availability contract?

Key Performance Indicators (KPIs) for this mid-term availability contract are essential for measuring the success of the maintenance and repair work performed by Detyens Shipyards Inc. While not explicitly detailed in the provided data, typical KPIs for such contracts include adherence to the schedule (completion within the 51-day window), quality of repairs (meeting technical specifications and standards), cost control (staying within the $11.18 million firm-fixed-price), and safety performance (maintaining a safe working environment). The Navy's contracting officer would likely establish specific acceptance criteria for the completed work, ensuring all critical systems are functional and meet operational requirements. Regular progress reviews and final inspections would be used to track performance against these KPIs.

What is the potential impact of the 'Exclusion of Sources' clause on competition and pricing?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the contract was broadly advertised, certain potential bidders were excluded based on specific criteria. This exclusion could stem from requirements related to security clearances, specialized equipment, past performance, or geographic location. While it aims to ensure only qualified entities bid, it can also limit the number of competitors, potentially reducing the intensity of price competition compared to truly unrestricted full and open competition. In this case, with 4 bidders, the exclusion did not appear to severely restrict the bidding pool, but it's important to understand the rationale behind the exclusion to ascertain if it was justified and if it led to a suboptimal price outcome for the government.

How does the firm-fixed-price (FFP) structure mitigate risks for this specific contract?

The Firm-Fixed-Price (FFP) contract structure is designed to provide the U.S. Navy with significant cost certainty for the $11.18 million mid-term availability of the USNS Robert E. Peary. Under an FFP, the contractor, Detyens Shipyards Inc., assumes most of the risk associated with cost overruns. This means that the agreed-upon price is generally final, regardless of the contractor's actual costs incurred during the performance period. This structure incentivizes the contractor to manage its resources efficiently and control expenses to maximize profit. For the government, it simplifies budgeting and financial management, as the total cost is known upfront, assuming the scope of work remains unchanged. However, it also means the government might pay a premium in the price to compensate the contractor for the risk they are undertaking.

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: N3220525R4084

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: $11,365,546

Exercised Options: $11,184,378

Current Obligation: $11,184,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline