Enhancing Competition in NAVSEA Procurement: Strategies for Addressing Sole-Source Contracting Challenges

Abstract

The Naval Sea Systems Command (NAVSEA) executes over 60,000 contracting actions annually, yet a significant portion remains non-competitive. This research addresses the growing reliance on sole source contracting within NAVSEA’s Supervisor of Shipbuilding, Conversion, and Repair (SUPSHIP) units, particularly in Groton, CT, and Newport News, VA. Using a mixed-methods design grounded in Resource Dependency Theory, the study combines quantitative spend analysis of fiscal years 2020–2023 with qualitative assessments of procurement practices and policy limitations. Findings reveal that over 40% of contract awards were sole source, often due to technical data restrictions, limited supplier bases, and structural procurement barriers. These conditions increase cost, reduce innovation, and pose risks to supply chain resilience. The research recommends strategies to enhance competition, including expanding access to technical data, fostering small business participation, and utilizing alternative acquisition contracting strategies like leader company contracting. These recommendations support NAVSEA’s goals of increasing procurement efficiency and resilience while aligning with DoD mandates for competition and industrial base modernization.