The U.S. Navy competitively awarded an indefinite-delivery, indefinite-quantity contract to All Star Metals of Brownsville, Texas, for the towing, dismantling and recycling of conventionally powered aircraft carriers stricken from the Naval Vessel Register, and a $0.01 fixed price delivery order for dismantling and recycling ex-USS Forrestal (AVT 59).
This is not a sales contract, it is a procurement contract. $0.01 is the lowest price the Navy could possibly have paid the contractor for the towing and dismantling of ex-Forrestal. The Navy continues to own the ship during the dismantling process until the ship has been fully dismantled. The contractor takes ownership of the scrap metal as it is produced and sells the scrap to offset its costs of operations.
The price of the delivery order reflects the net price proposed by All Star Metals, which considered the estimated proceeds from the sale of the scrap metal to be generated from dismantling.
In May 2012, the Navy solicited proposals for the award of up to three contracts for the dismantling and recycling of inactive conventionally-powered aircraft carriers. All Star Metals is the first of three successful offerors to receive its facility security clearance, which is required prior to contract award. After the initial award of one carrier to each successful offeror, the Navy has the capability of scrapping additional conventionally-powered aircraft carriers over a five-year period under delivery orders competed between the three contractors.
All Star Metals will now develop its final tow plan for the Navy’s approval for the tow of ex-Forrestal from its current berth at the Navy’s inactive ship facility in Philadelphia to All Star Metals’ facility in Brownsville. The ship is expected to depart Philadelphia before the end of the year. Navy civilian personnel will be on site full time to monitor the contractor’s performance during dismantling of the ship.
Forrestal was decommissioned Sept. 11, 1993, after more than 38 years of service. On June 16, 1999, the Navy announced the ship would be available for donation to an eligible organization for use as a museum or memorial. However, no viable applications were received and the vessel was removed from donation hold in December 2003 and redesignated for disposal.
The first of the “supercarriers,” Forrestal was launched Dec. 11, 1954, by Newport News Shipbuilding and Drydock Co., and commissioned Sept. 29, 1955.
The award of contracts for two additional conventional carriers – ex-Saratoga (CV 60) and ex-Constellation (CV 64) – are pending, as they are contingent upon the two other successful offerors receiving their facility security clearances.
Press Release, October 28, 2013