DoD Awards $39.3M for ARDM-4 Ship Repair to Detyens Shipyards

Contract Overview

Contract Amount: $39,349,562 ($39.3M)

Contractor: Detyens Shipyards Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-15

End Date: 2012-08-28

Contract Duration: 1,443 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SHIPPINGPORT (ARDM-4) SCO

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to DETYENS SHIPYARDS INC for work described as: SHIPPINGPORT (ARDM-4) SCO Key points: 1. The contract value is $39.3 million, awarded by the Department of the Navy. 2. Detyens Shipyards Inc. secured the contract under full and open competition. 3. The contract duration was 1443 days, indicating a significant project. 4. The sector is Ship Building and Repair, a critical defense capability.

Value Assessment

Rating: good

The award amount of $39.3 million for a 1443-day project appears reasonable given the scope of ship repair. Benchmarking against similar large-scale naval vessel repair contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price for services rendered.

Public Impact

Ensures continued operational readiness of naval assets. Supports critical shipbuilding and repair infrastructure. Provides employment opportunities within the maritime industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on long-duration projects.
Dependence on a single contractor for a significant period.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type limits cost risk to the government.

Sector Analysis

The Ship Building and Repair sector is vital for national defense, involving complex engineering and specialized labor. Spending in this area is often driven by fleet maintenance and modernization needs.

Small Business Impact

While Detyens Shipyards Inc. secured this large contract, the data does not indicate the extent of small business participation as subcontractors. Further analysis would be needed to assess small business impact.

Oversight & Accountability

The Department of the Navy's oversight would be crucial to ensure project milestones are met and the firm fixed price is adhered to, preventing scope creep and cost increases.

Related Government Programs

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

Risk Flags

Long contract duration increases risk of cost escalation.
Limited number of bids received.
Potential for contractor to underbid and seek change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to DETYENS SHIPYARDS INC. SHIPPINGPORT (ARDM-4) SCO

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 $39.3 million.

What is the period of performance?

Start: 2008-09-15. End: 2012-08-28.

What was the competitive landscape like for this specific ARDM-4 repair contract?

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that multiple bidders were likely considered. The presence of two bids ('no': 2) suggests a moderately competitive environment, though the number of bidders doesn't always reflect the intensity of competition or the quality of the proposals received.

What are the primary risks associated with a firm fixed price contract of this duration?

The primary risk with a long-duration firm fixed price contract is the potential for unforeseen cost increases due to inflation, material price volatility, or scope creep that is not adequately managed. While the government is protected from cost overruns, the contractor may face reduced profit margins or seek change orders if costs escalate significantly beyond initial estimates.

How does this contract contribute to the overall readiness of the naval fleet?

This contract is crucial for maintaining the operational readiness of the naval fleet by ensuring the structural integrity and functionality of the ARDM-4 auxiliary floating drydock. Such repairs are essential for supporting the deployment and effectiveness of other naval vessels.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1670 DRYDOCK AVE # 236, NORTH CHARLESTON, SC, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,349,562

Exercised Options: $39,349,562

Current Obligation: $39,349,562

Contract Characteristics

Cost or Pricing Data: NO

Timeline