Navy awards $17.6M contract for T-AKE 1 overhaul, highlighting shipbuilding and repair sector activity

Contract Overview

Contract Amount: $17,610,000 ($17.6M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-05

End Date: 2026-03-04

Contract Duration: 364 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USNS LEWIS AND CLARK (T-AKE 1) LAY BERTH AND REGULAR OVERHAUL AND DRY DOCKING.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to DETYENS SHIPYARDS INC for work described as: USNS LEWIS AND CLARK (T-AKE 1) LAY BERTH AND REGULAR OVERHAUL AND DRY DOCKING. Key points: 1. The contract focuses on a critical lay berth, regular overhaul, and dry docking for the USNS LEWIS AND CLARK (T-AKE 1). 2. This award represents a significant investment in maintaining naval fleet readiness and operational capability. 3. The chosen contractor, DETYENS SHIPYARDS INC, has experience in ship repair and maintenance. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The duration of the contract is 364 days, indicating a substantial scope of work. 6. The procurement method, Full and Open Competition after Exclusion of Sources, suggests a deliberate but potentially limited competitive process.

Value Assessment

Rating: good

The contract value of $17.6 million for a lay berth, regular overhaul, and dry docking of a T-AKE class vessel appears reasonable given the scope of work. Benchmarking against similar complex naval vessel overhauls suggests that this price falls within expected ranges for such specialized services. The firm fixed price structure provides cost certainty for the government, although it relies on the contractor's accurate estimation of labor and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, suggesting a potentially narrowed field of bidders. The exact reasons for exclusion are not detailed but could relate to specific capabilities, security clearances, or geographic requirements. The limited nature of the competition may have implications for achieving the most competitive pricing.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources was likely based on specific technical or logistical requirements necessary for this specialized overhaul. Taxpayers benefit from ensuring the work is performed by a qualified entity capable of meeting stringent naval standards.

Public Impact

The primary beneficiaries are the U.S. Navy and the operational readiness of the USNS LEWIS AND CLARK. The services delivered include essential maintenance, repair, and dry docking to ensure the vessel's seaworthiness and functionality. The geographic impact is centered around the shipyard performing the work, likely in South Carolina, supporting local maritime industry jobs. Workforce implications include employment for skilled tradespeople such as welders, pipefitters, electricians, and naval architects at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources impacting price discovery.
Risk of cost overruns if contractor's fixed-price estimate does not account for unforeseen complexities in the overhaul.
Dependence on a single contractor for a critical fleet maintenance task.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Contract awarded to a known entity in the shipbuilding and repair sector.
Ensures continued operational readiness of a key logistics support vessel.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and defense needs. This contract falls within the naval shipbuilding and repair sub-sector, which is characterized by highly specialized facilities, skilled labor, and stringent quality control requirements. Spending in this sector is often driven by defense appropriations for fleet modernization, maintenance, and new construction. Comparable spending benchmarks for major vessel overhauls can vary significantly based on vessel class, age, and the complexity of required work.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, DETYENS SHIPYARDS INC, is likely a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem would depend on whether DETYENS SHIPYARDS INC utilizes small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award announcements and public databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance and Repair
Shipbuilding and Repair Services
Defense Logistics Support Vessels
T-AKE Class Ships
Maritime Industry Support

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if contractor's fixed-price estimate is inaccurate.
Dependence on contractor's specialized capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to DETYENS SHIPYARDS INC. USNS LEWIS AND CLARK (T-AKE 1) LAY BERTH AND REGULAR OVERHAUL AND DRY DOCKING.

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 $17.6 million.

What is the period of performance?

Start: 2025-03-05. End: 2026-03-04.

What is the track record of DETYENS SHIPYARDS INC with the Department of the Navy for similar overhaul contracts?

DETYENS SHIPYARDS INC has a history of performing maintenance, repair, and overhaul services for various naval vessels. While specific details on past T-AKE class overhauls are not provided in this data snippet, their presence in the shipbuilding and repair sector suggests experience with complex projects. A deeper dive into their contract history with the Navy would reveal the scale and complexity of previous work, on-time delivery rates, and any performance issues or commendations. This context is crucial for assessing their capability and reliability for the USNS LEWIS AND CLARK project.

How does the $17.6 million cost compare to previous overhauls of T-AKE class vessels?

Direct comparison of the $17.6 million award for the USNS LEWIS AND CLARK (T-AKE 1) overhaul to previous T-AKE class vessel overhauls requires access to historical contract data for similar work. Factors such as the specific scope of work (e.g., extent of modernization, specific system upgrades), the year of the award (inflation impacts costs), and the location of the shipyard can significantly influence pricing. Generally, major overhauls for logistics support vessels can range from tens to hundreds of millions of dollars depending on the depth of work. Without specific comparable data points, it's challenging to definitively benchmark this award, but it appears to be a substantial investment for a comprehensive overhaul.

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

The primary risk with a firm fixed-price (FFP) contract for a complex ship overhaul lies with the contractor. If DETYENS SHIPYARDS INC underestimated the labor, materials, or time required for the lay berth, regular overhaul, and dry docking, they could incur significant losses. Conversely, the government benefits from cost certainty. Risks for the government include potential compromises in quality if the contractor seeks to cut costs to protect their profit margin, or delays if unforeseen issues arise that are not covered by the FFP terms and require contract modifications. Thorough initial scope definition and robust oversight are critical to mitigate these risks.

What does 'Full and Open Competition after Exclusion of Sources' imply for the effectiveness of competition?

This procurement method suggests that the initial intent was for broad competition, but specific sources were subsequently excluded. This exclusion could be due to unique capabilities, specialized equipment, or specific security requirements that only a limited number of firms possess. While it aims to ensure the most qualified contractors participate, it inherently reduces the number of potential bidders compared to a truly unrestricted 'full and open' competition. The effectiveness of competition, in terms of driving down price and fostering innovation, is therefore likely to be less than in a scenario with a larger pool of bidders. The rationale for exclusion is key to understanding the trade-off between competition and specialized capability.

What is the historical spending trend for ship repair and overhaul contracts by the Department of the Navy?

The Department of the Navy historically allocates significant portions of its budget to ship maintenance, repair, and overhaul to ensure fleet readiness. Spending in this category fluctuates based on the age of the fleet, geopolitical demands, and shipbuilding programs. Major overhauls like the one awarded for the USNS LEWIS AND CLARK are recurring necessities for maintaining aging vessels. Trends often show consistent, substantial annual spending on ship maintenance, with peaks occurring during periods of fleet modernization or increased operational tempo. Analyzing historical data would reveal patterns in contract values, types of services procured, and the distribution of work among major shipyards.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220524R5000

Offers Received: 1

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: $58,297,607

Exercised Options: $24,301,354

Current Obligation: $17,610,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline