House Small Business Committee News

SCA to Congress: Block Bundled Navy Repair Contracts

In a letter to the House Small Business Committee, the Shipbuilders Council of America (SCA) urged Congress to block the Navy from consolidating all mid-Atlantic region surface ship maintenance into two contracts. This anti-competitive and risky scheme, called Multi-Ship/Multi-Option (MS/MO) repair contracts, would destroy the modern competitive ship repair industry, lower Navy readiness and harm small business. The contracts proposed by the Navy will lead to higher repair costs without improving quality. With competition between repair yards enables the Navy to secure the best repair value at the lowest possible price, this rivalry exists because small and mid-sized repair yards provide the Navy with a wider range of repair options thereby putting downward pressure on pricing.