September 28, 2018 | International, Naval
By: Megan Eckstein
The Navy awarded six of its next Arleigh Burke-class destroyers to Ingalls Shipbuilding and four to General Dynamics Bath Iron Works, in a combined $9-billion purchase right at the end of the fiscal year.
The two companies had been competing for work in a five-year multiyear procurement (MYP) deal that would cover at least 10 Flight III destroyers. The contracts span Fiscals Years 2018 – which ends on Sunday – through 2022.
“These contract awards are further evidence of the Navy's continued delivery of lethal capacity to the nation with a sense of urgency while ensuring best value for the taxpayer,” Navy acquisition chief James Geurts said in a Navy news release.
“The Navy saved $700 million for these 10 ships by using multiyear procurement contracts rather than a single year contracting approach. We also have options for an additional five DDG 51s to enable us to continue to accelerate delivery of the outstanding DDG 51 Flight III capabilities to our Naval force. We executed this competition on a quick timeline that reflects the urgency in which the Navy and our industry partners are operating to ensure we meet the demands of the National Defense Strategy.”
Ingalls Industries' contract is worth $5.1 billion and covers two ships in FY 2018 and one a year in FY 2019 through 2022. It also includes options for additional ships, which may be subject to a future competition with BIW.
Bath Iron Works' contract is valued at $3.9 billion and covers one ship a year in 2019 through 2022 – and none in the short-term in 2018.
According to the Navy statement, “each shipbuilder's contract contains options for additional ships in FY18/19/20/21/22, providing the Navy and/or Congress flexibility to increase DDG 51 build rates above the 10 MYP ships in the Navy's FY 2018 budget request, if appropriated.”
Lawmakers in the House and Senate armed services committees have pushed for faster acquisition of the destroyers, and in the FY 2018 National Defense Authorization Act they authorized the Navy to enter into a multiyear procurement contract with the two builders for as many as 15 destroyers – three a year, compared to the previous shipbuilding rate of two a year.
The lawmakers on the appropriations committees only provided money to buy two ships in 2018, but they did fund three DDGs in the 2019 spending bill, which the Senate passed last week and the House passed this week. It is unclear if that third ship in FY 2019 would have to be competitively awarded or if the Navy would be allowed to select a shipyard based on schedule, performance or other factors – the contract announcement notes the options “may” be subject to a competitive process. Program officials had been mum during the competition on their acquisition strategy and how to handle options for additional ships.
All the ships covered under this pair of contracts is for the Flight III configuration, which is built around the powerful AN/SPY-6(v) Air and Missile Defense Radar.
“This procurement will efficiently provide Integrated Air and Missile Defense capability for our future fleet while strengthening our critical shipbuilding and defense industrial base,” DDG-51 program manager Capt. Casey Moton said in the news release.
“The Navy is proud to be working alongside the dedicated shipbuilders at BIW and Ingalls to continue to deliver these warships to the fleet.”
Moton told USNI News in a December 2017 interview that the contracts would be structured in such a way that additional ships – beyond the previous two-a-year rate – could be added easily if the Navy deemed it a priority in its spending request or if lawmakers wanted to add in more funding.
With this contract award, the two shipyards – who, for a time after the production line had restarted remained neck-and-neck on contract awards and deliveries – will further diverge. Ingalls Shipbuilding was awarded a contract in June 2017 to begin work on its first Flight III ship, DDG-125. Two months later, Bath Iron Works was awarded a contract that would have the yard build DDG-126 with a Flight III configuration but DDG-127 in the older Flight IIA design, like the rest of the ships in the previous multiyear procurement contract.
Though Navy and congressional officials would not comment while the competition was occurring, Bath Iron Works had been challenged to balance the Arleigh Burke-class program and the DDG-1000 Zumwalt-class destroyer program. Keeping DDG-127 – which Congress incrementally funded in FY 2016 and 2016 – at the Flight IIA design would help ease the yard into Flight III production. The yard will not be building any new destroyers in FY 2018, according to the contract announcement, whereas Ingalls will take on two Flight III ships.
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NAVY APTIM Federal Services LLC, Alexandria, Virginia, is awarded a $129,174,167 firm-fixed-price contract for the dismantlement and disposal of the Surface Ship Support Barge, a radiologically controlled Navy support facility. Work will be performed in Mobile, Alabama (65%); Norfolk, Virginia (25%); and Andrews, Texas (10%). This contract will accomplish engineering planning efforts, dismantlement, transport and disposal of the Surface Ship Support Barge. Work is expected to be complete by June 2023. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $129,174,167 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured via Beta.Sam.gov website and one offer was received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-20-C-4139). Lockheed Martin Corp., Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $70,165,869 cost-plus-incentive-fee and cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-5103 to exercise Option Year Two in support of Aegis development and test sites operations and maintenance. This contract combines purchases for the Navy (73.4%); and the governments of Japan, Republic of Korea and Norway (26.6%), under the Foreign Military Sales (FMS) program. Work will be performed in Moorestown, New Jersey. This option exercise is for the continued technical engineering, configuration management, associated equipment/supplies, quality assurance, information assurance and other operations and maintenance efforts required for the Aegis development and test sites. This contract modification will provide continuing site maintenance and planned improvements of the sites for Aegis combat system and Aegis weapon system upgrades to the U.S. Ship Ticonderoga CG-47 and U.S. Ship Arleigh Burke DDG-51 through the completion of Advanced Capability Build 20 and Technology Insertion 16, in addition to Aegis ballistic missile defense and FMS requirements. Work is expected to be complete by June 2021. Fiscal 2016 shipbuilding and conversion (Navy) funds; FMS Japan, Republic of Korea and Norway funds; 2020 research, development, test and evaluation (Navy) funds; 2020 research, development, test and evaluation funds; 2020 operations and maintenance funds; and fiscal 2020 other procurement (Navy) funds in the amount of $24,220,069 will be obligated at time of award. Funding in the amount of $1,886,754 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. PAE Applied Technologies LLC, Fort Worth, Texas, is awarded a $38,556,254 modification (P00100) to previously awarded cost reimbursable, cost-plus-fixed-fee contract N00421-14-C-0038. This modification exercises an option to extend services and adds hours in support of range engineering, and operations and maintenance for the Atlantic Test Range and Atlantic Targets and Marine Operations. Work will be performed in Patuxent River, Maryland, and is expected to be complete by December 2020. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $1,933,227; fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,577,000; fiscal 2020 research, development, test and evaluation (Defense-wide) funds in the amount of $982,810; fiscal 2019 research, development, test and evaluation (Defense-wide) funds in the amount of $110,000; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $55,000 will be obligated at the time of award, $3,620,227 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Nagamine Okawa Engineers Inc.,* Honolulu, Hawaii, is awarded $30,000,000 for an indefinite-delivery/indefinite-quantity, architect-engineering contract with a maximum amount of $30,000,000 for architect-engineer services and other projects at various Navy, Marine Corps and other government facilities within the Naval Facilities Engineering Command (NAVFAC), Hawaii, area of operations. All work on this contract will be performed in, but not limited to Hawaii (95%); and other South Pacific Islands (5%). The work to be performed will provide for architect-engineer services for structural projects with associated multi-discipline architect-engineer support services. The type of design and engineering services expected to be performed under this contract are primarily for request for proposal (RFP) documentation for design-bid-build structural projects with associated multi-discipline, architect-engineering support services for new construction, alteration, repair and installation of mechanical systems and associated facilities. Other design and engineering services may include, but are not limited to, design-build RFP documentation, engineering investigations/concept studies, functional analysis concept development/charrettes and post construction award services. Work is expected to be complete by June 2025. The term of the contract is not to exceed 60 months. No task orders are being issued at this time. Fiscal 2020 operations and maintenance (Navy)(O&M, N) contract funds for the minimum guarantee in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be funded primarily with O&M, N funds. This contract was competitively procured via the Beta.Sam.gov website and two proposals were received. The NAVFAC, Honolulu, Hawaii, is the contracting activity (N62478-20-D-5038). Archer Western Federal JV, Chicago, Illinois, is awarded $26,515,000 for firm-fixed-price task order N69450-20-F-0702 under a multiple award construction contract for the Targeting and Surveillance System facility, Naval Air Station, Jacksonville, Florida. Work will be performed in Jacksonville, Florida, and provides for construction of a new +/- 49,000 square foot Targeting And Surveillance System facility that will accommodate avionics workload, personnel and equipment for the Joint Strike Fighter program. The facility includes areas for engineering and administrative personnel. Work is expected to be complete by November 2022. Fiscal 2020 military construction (Navy) contract funds in the amount of $26,515,000 are obligated on this award and will not expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-19-D-0907). General Dynamics NASSCO-Norfolk, Norfolk, Virginia, is awarded a $17,694,948 modification to previously awarded cost-plus award fee and cost-plus-incentive-fee contract N00024-16-C-4306 for the U.S. Ship Harry S Truman (CVN-75) fiscal 2020 extended continuous incremental availability. Work will be performed in Portsmouth, Virginia. An extended continuous incremental availability (ECIA) includes the planning and execution of depot-level maintenance, alterations and modifications that will update and improve the ship's military and technical capabilities. The fiscal 2020 U.S. Ship Harry S. Truman ECIA is comprised of 117 total work items. The nuclear aircraft carrier's (CVN) private sector maintenance addresses the maintenance, repair and modernization efforts for CVN 68 Class home, ported-in and visiting the Hampton Roads, Virginia, area, as well as for selected non-nuclear propulsion plant repairs while coordinating with the Naval Supervising Activity, Norfolk Naval Shipyard (NNSY), to properly integrate their efforts with nuclear propulsion plant work conducted by NNSY. Work is expected to be complete by January 2021. Fiscal 2020 operations and maintenance (Navy); and fiscal 2020 other procurement (Navy) funding in the amount of $16,468,117 will be obligated at time of award, and funding in the amount of $17,694,948 will expire at the end of the current fiscal year. The Mid Atlantic Regional Maintenance Center, Norfolk, Virginia, is the administrative contracting activity (N00024-16-C-4306). DEFENSE LOGISTICS AGENCY I-Solutions Direct Inc., doing business as I-Solutions Group, Fort Washington, Pennsylvania, has been awarded a maximum $84,000,000 firm-fixed-price contract for commercial metal products. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is an 18-month bridge contract with no option periods. Locations of performance are Pennsylvania, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wisconsin, with a Dec. 8, 2021, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E5-20-D-0006). Mechanix Wear, Inc.,* Valencia, California, has been awarded a maximum $7,415,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army combat-capacitive gloves. This was a competitive acquisition with six responses received. This is a one-year base contract with three one-year option periods. Locations of performance are California and Rhode Island, with a June 8, 2021, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1209). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY SA Photonics Inc.,* Los Gatos, California, has been awarded a $16,361,123 cost-plus-fixed-fee contract for the Blackjack Track A (Payload) Phases 2 and 3 program. Work will be performed in Los Gatos, California (89%); and Redwood City, California (11%), with an estimated completion date of March 2021. Fiscal 2020 research and development funds in the amount of $16,130,000 are being obligated at the time of award. This contract is a competitive acquisition in accordance with the original broad agency announcement, HR001118S0032. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR001120C0095). DEFENSE HEALTH AGENCY Kreative Technologies LLC, Fairfax, Virginia, was awarded a firm-fixed-price contract in the amount of $9,996,142 for enterprise information management (EIM) support. This contract provides non-personal services for operations, sustainment and engineering support of work-flows and capabilities utilizing agile methodology that will incorporate a more efficient and streamlined process to identify, develop and deploy system updates resulting in improved user experience, system performance and system availability. The contractor will also provide system administration and user support associated with software operation and maintenance, provide Tier III application and system support remotely, and provide "tiger team" on-site support as needed. The contract scope also includes the EIM sustainment and updates of non-production environments. The contract has a period of performance for 12 months and a transition out period for three months. The contract was awarded through the Small Business Administration 8(a) Business Development Program. The place of performance is Falls Church, Virginia. The Defense Health Agency, Enterprise Medical Services Contracting Division, Joint Base San Antonio, Texas, is the contracting activity (HT001520F0024). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2213629/source/GovDelivery/