Draper Lab Awarded $61.8M for Missile Defense R&D, Extending to 2029

Contract Overview

Contract Amount: $61,766,731 ($61.8M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-30

End Date: 2029-10-10

Contract Duration: 4,424 days

Daily Burn Rate: $14.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANALYTICAL ENGINEERING FOR GMG LABOR "IGF::OT::IGF"

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $61.8 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: ANALYTICAL ENGINEERING FOR GMG LABOR "IGF::OT::IGF" Key points: 1. Significant R&D investment in missile defense technology. 2. Sole-source award to a single, established contractor. 3. Long contract duration raises questions about flexibility and evolving needs. 4. High value contract requires robust oversight.

Value Assessment

Rating: fair

The contract value is substantial at $61.8 million. Without comparable contract data for similar R&D services, assessing pricing efficiency is difficult. The Cost Plus Fixed Fee structure can incentivize cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to The Charles Stark Draper Laboratory, Inc. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these research and development services.

Public Impact

Missile defense capabilities are critical for national security. Long-term R&D funding can foster innovation but also risks obsolescence. The specific nature of the research may not have readily available commercial alternatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Long contract duration (over 10 years).
Cost-plus contract type can lead to cost overruns.
Lack of transparency in pricing due to sole-source nature.

Positive Signals

Focus on critical missile defense R&D.
Contractor has specialized expertise.
Long-term commitment allows for sustained research.

Sector Analysis

This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector, particularly for defense applications, is often characterized by long development cycles and specialized, non-commercial requirements, making direct benchmarking challenging.

Small Business Impact

The contract was awarded to The Charles Stark Draper Laboratory, Inc., a large, established entity. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Given the sole-source nature and long duration, rigorous oversight by the Missile Defense Agency is crucial to ensure cost control, performance, and alignment with strategic objectives. Regular reviews and performance metrics are essential.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Sole-source award limits competition and potentially inflates costs.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration (over 10 years) increases risk of obsolescence and changing requirements.
Lack of small business participation noted.
Limited transparency into pricing due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.8 million to THE CHARLES STARK DRAPER LABORATORY, INC.. ANALYTICAL ENGINEERING FOR GMG LABOR "IGF::OT::IGF"

Who is the contractor on this award?

The obligated recipient is THE CHARLES STARK DRAPER LABORATORY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $61.8 million.

What is the period of performance?

Start: 2017-08-30. End: 2029-10-10.

What is the justification for the sole-source award, and were alternative sources considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. For this contract, the specific rationale for awarding to The Charles Stark Draper Laboratory, Inc. without competition needs to be thoroughly documented and justified by the Missile Defense Agency to ensure taxpayer funds are used appropriately and that no viable alternatives were overlooked.

How will cost growth be managed under the Cost Plus Fixed Fee structure over the extended contract period?

Managing cost growth under a CPFF contract requires stringent oversight, detailed cost tracking, and clear performance metrics. The Missile Defense Agency must implement robust financial controls and regular audits to monitor expenditures. Establishing realistic fixed fees and ensuring the contractor operates efficiently are key to preventing cost overruns and maximizing value over the contract's long duration.

What mechanisms are in place to ensure the R&D remains relevant and adaptable over the contract's 12-year lifespan?

Given the extended period, mechanisms for adapting to technological advancements and evolving threats are vital. This could include phased research objectives, regular program reviews with clear go/no-go decision points, and flexibility to incorporate new research directions based on emerging intelligence or technological breakthroughs. Without such adaptability, the R&D could become outdated before its completion.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ014717R0029

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQ, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,399,311

Exercised Options: $65,399,311

Current Obligation: $61,766,731

Actual Outlays: $1,892,539

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $84,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline