Navy Awards $11.17M Sole-Source Contract to Electric Boat Corp for SSN-756 SRA Support

Contract Overview

Contract Amount: $11,173,172 ($11.2M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2007-09-14

End Date: 2008-02-29

Contract Duration: 168 days

Daily Burn Rate: $66.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SSN-756 SRA SUPPORT

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to ELECTRIC BOAT CORPORATION for work described as: SSN-756 SRA SUPPORT Key points: 1. Contract awarded to a single, established supplier, limiting competitive pricing. 2. High value contract for specialized shipbuilding and repair services. 3. Sole-source award raises concerns about price reasonableness and taxpayer value. 4. Sector is critical for national defense, but competition is often limited.

Value Assessment

Rating: questionable

The contract value of $11.17M for a 168-day period is difficult to assess without comparable data. The cost-plus-fixed-fee structure can incentivize cost overruns, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced price discovery for the government.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the services rendered.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in pricing due to sole-source nature. Potential for cost overruns in cost-plus-fixed-fee contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition

Positive Signals

Award to established contractor
Supports critical defense asset

Sector Analysis

This contract falls within the shipbuilding and repair sector, a critical component of national defense. Spending in this area is often characterized by high costs, long lead times, and specialized expertise, which can limit competition.

Small Business Impact

The contract was awarded to Electric Boat Corporation, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost. Robust auditing of costs would be prudent.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition
Cost-plus-fixed-fee contract type can lead to cost overruns
Limited transparency in pricing
Potential for reduced taxpayer value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to ELECTRIC BOAT CORPORATION. SSN-756 SRA SUPPORT

Who is the contractor on this award?

The obligated recipient is ELECTRIC BOAT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-09-14. End: 2008-02-29.

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

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's unclear if alternatives were explored. A thorough review of the justification is necessary to ensure it aligns with federal procurement regulations and that competition was not feasible or would have been detrimental to the government's interests.

How does the fixed fee component of this cost-plus-fixed-fee contract compare to industry benchmarks for similar services?

Assessing the fixed fee requires benchmarking against similar contracts for submarine repair and modernization. Factors like contract complexity, risk, and contractor performance history influence the fee. Without specific benchmark data, it's challenging to determine if the fee is reasonable and reflects fair market value for the services provided.

What mechanisms are in place to ensure cost control and prevent overruns given the cost-plus-fixed-fee structure?

Effective oversight of cost-plus-fixed-fee contracts relies on stringent cost accounting standards, regular audits, and clear performance metrics. The government should actively monitor expenditures, validate incurred costs, and ensure the contractor adheres to the contract's scope and budget. Transparency in reporting and proactive communication are crucial for managing potential cost escalations.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002405R4417

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 75 EASTERN POINT RD, GROTON, CT, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,273,172

Exercised Options: $14,273,172

Current Obligation: $11,173,172

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002405G4417

IDV Type: IDC

Timeline