DoD's $26.7M Ship Repair Contract with Electric Boat Corp. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $26,702,987 ($26.7M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2012-12-07
End Date: 2017-08-11
Contract Duration: 1,708 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRAVEL
Plain-Language Summary
Department of Defense obligated $26.7 million to ELECTRIC BOAT CORPORATION for work described as: TRAVEL Key points: 1. The contract value is $26.7 million, focused on ship building and repairing. 2. Electric Boat Corporation is the sole awardee, indicating a specific capability or market position. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is substantial at 1708 days, implying a long-term need.
Value Assessment
Rating: good
The contract value of $26.7 million for ship building and repair appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale naval repair contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. The use of a definitive contract suggests a well-defined scope of work and a structured price discovery process.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures readiness of U.S. Special Operations Command naval assets. Supports specialized shipbuilding and repair capabilities within the defense industrial base. Provides long-term employment and economic activity in the shipbuilding sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term, complex repair projects.
- Dependence on a single contractor for critical repair services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type helps control costs.
- Long contract duration indicates sustained operational needs.
Sector Analysis
This contract falls within the Defense sector, specifically ship building and repairing. Spending in this area is critical for maintaining naval fleet readiness and is often characterized by high costs due to specialized labor and materials.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large, complex shipbuilding and repair contracts are often dominated by major defense contractors, potentially limiting small business participation.
Oversight & Accountability
The use of a definitive contract and full and open competition suggests established oversight mechanisms. However, ongoing monitoring of performance and costs throughout the contract's duration is crucial for accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Long contract duration may increase risk of scope creep or unforeseen issues.
- Potential for cost escalation if not managed tightly.
- Dependence on a single contractor for critical services.
- Lack of explicit small business participation noted.
Tags
ship-building-and-repairing, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to ELECTRIC BOAT CORPORATION. TRAVEL
Who is the contractor on this award?
The obligated recipient is ELECTRIC BOAT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $26.7 million.
What is the period of performance?
Start: 2012-12-07. End: 2017-08-11.
What specific repair or building services were included in this contract, and how do they align with the operational needs of U.S. Special Operations Command?
The contract specifies 'Ship Building and Repairing' under NAICS code 336611. While the exact services are not detailed, this code covers the construction, alteration, and repair of ships and other marine vessels. For U.S. Special Operations Command, this likely includes maintenance, upgrades, and potentially specialized modifications for their unique fleet of vessels, ensuring operational readiness and capability.
Given the long duration and value, what are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential cost overruns due to unforeseen technical challenges or material price fluctuations, and schedule delays impacting operational readiness. Mitigation strategies likely involve robust contract management, performance monitoring, change order controls, and potentially contingency planning within the firm fixed price structure.
How does the firm fixed price structure ensure value for money for this complex ship repair contract?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, incentivizing efficiency and cost control. For this ship repair contract, FFP provides budget certainty for the government. However, the initial price must be carefully negotiated to reflect realistic costs and potential complexities to ensure true value for money.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: H9222212R0078
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 75 EASTERN POINT RD, GROTON, CT, 06340
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,154,752
Exercised Options: $27,046,193
Current Obligation: $26,702,987
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-07
Current End Date: 2017-08-11
Potential End Date: 2017-08-11 00:00:00
Last Modified: 2016-09-01
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