DDG 124 and DDG 127 Post Shakedown Availabilities at Norfolk

A cost type contract was chosen for this effort because much of the work to be performed will be identified during execution of a given availability. PSAs' sequence of events is structured to allow identification of work packages following delivery on a ship-by-ship basis. Due to the variable nature of the work packages, a fixed price approach to this contract would likely result in higher overall cost for the Government as a result of Offerors pricing in contingencies to mitigate risks of the variable work packages. A cost type arrangement is therefore in the best interest of the Government as it allows the flexibility required to scope work per ship while holding the Contractor accountable for performance through use of award fee. This requirement was solicited as a full and open competition; only one proposal was received.