Two words of description, outlays at 2.5% of the obligation: $4.46 billion in shipbuilding
A Navy contract signed in December 2010 and closed on 28 March 2024, obligating about $4.46 billion. Its description reads BASIC CONTRACT, and the outlay field holds about $110 million — 2.5% of the obligation.
Contract key facts
- RecipientAUSTAL USA, LLC
- Contract value$4,462,893,977 (≈$4.46B)
- BranchNavy
- Awarding agencyDepartment of Defense
- Awarding sub-agencyDepartment of the Navy
- Award typeDEFINITIVE CONTRACT
- Period of performance2010-12-29 〜 2024-03-28
- Contract ID (PIID)N0002411C2301
Contract scope (original)
BASIC CONTRACT
Key points
- Signed by the Department of the Navy on 29 December 2010 and closed on 28 March 2024 for about $4.46 billion.
- The description is two words, BASIC CONTRACT, and never states the subject of the award.
- The outlay field holds about $110.3 million, 2.5% of the obligated amount.
- Across the 41 finished contracts with positive outlays, the median ratio is 0.35% and the maximum 21.5%.
1The number is there, and it is still small
Through the previous article the outlay field was blank or zero. This contract carries a number: about $110.3 million. The obligation is about $4.46 billion.
2Even where a number exists, the ratio is small
Forty-one finished contracts carry a positive outlay figure. Comparing outlays with obligations across those 41 gives this:
| Measure | Value |
|---|---|
| Median | 0.35% |
| Ninetieth percentile | 3.27% |
| Maximum | 21.5% |
| Records above 50% | 0 |
Not one of the 41 reaches half of its obligation. At 2.5%, this contract sits toward the high end of that group.
3When the description runs to two words
Basic contract names a contracting form, not a subject. What was built cannot be read from this field. What can be read is that the Navy placed the order, that the recipient is Austal USA, LLC, and that the period ran a little over thirteen years.
The next article takes up the one description that says what the work is, with outlays still below one per cent.
Why it matters
Even where the outlay field carries a number, the ratio to the obligation is usually below one per cent. Using this field to assess budget execution leads to wrong conclusions; use obligated amounts to compare scale.
FAQ
If outlays are 2.5% of the obligation, was the contract left unperformed?
What is a basic contract?
Is comparing these ratios across contracts useful?
Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID)：N0002411C2301