Navy's $235M R&D Contract with Electric Boat Corporation: A Long-Term Science and Technology Initiative

Contract Overview

Contract Amount: $23,520,184 ($23.5M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2013-09-05

End Date: 2022-04-29

Contract Duration: 3,158 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE AND TECHNOLOGY

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to ELECTRIC BOAT CORPORATION for work described as: LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE AND TECHNOLOGY Key points: 1. Significant long-term investment in Navy and Marine Corps science and technology. 2. Electric Boat Corporation is a major defense contractor, suggesting specialized capabilities. 3. Full and open competition was utilized, indicating a broad search for solutions. 4. The contract spans nearly a decade, highlighting the enduring nature of the R&D.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure allows for flexibility but can lead to cost overruns if not managed closely. The total award of $235M over a long duration suggests a substantial investment, but without specific task orders or performance metrics, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of a Broad Agency Announcement (BAA) with full and open competition suggests the government sought a wide range of innovative solutions. This method generally promotes competitive pricing by allowing multiple offerors to propose their best approaches.

Taxpayer Impact: The long-term nature and broad scope of the R&D may lead to significant technological advancements, potentially offering long-term value to taxpayers through improved defense capabilities.

Public Impact

Enhances national security through advanced research and development. Supports innovation in critical areas for naval warfare. Potential for technological spin-offs benefiting other sectors. Long-term commitment indicates sustained focus on future defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to control costs.
Long contract duration increases risk of scope creep or evolving requirements.
Lack of specific task order details limits immediate performance assessment.

Positive Signals

Full and open competition fosters innovation and potentially better solutions.
Focus on science and technology aligns with future defense needs.
Established contractor suggests a degree of reliability.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The $235M award over nearly 9 years is substantial for R&D, reflecting the complexity and long-term nature of defense science and technology initiatives.

Small Business Impact

While the contract was awarded to Electric Boat Corporation, a large entity, the use of a Broad Agency Announcement (BAA) could potentially allow for subcontracting opportunities for small businesses if they possess specialized expertise relevant to the R&D efforts.

Oversight & Accountability

The long duration and cost-plus-fixed-fee nature of this contract necessitate robust oversight from the Department of the Navy to ensure funds are used effectively and objectives are met. Regular reviews and performance monitoring are crucial.

Related Government Programs

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

Risk Flags

Cost overruns potential
Long-term scope management
Measuring R&D effectiveness
Contractor performance variability
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to ELECTRIC BOAT CORPORATION. LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE AND TECHNOLOGY

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 $23.5 million.

What is the period of performance?

Start: 2013-09-05. End: 2022-04-29.

What specific technological advancements are expected from this long-range BAA, and how will their success be measured?

The BAA aims to advance science and technology for the Navy and Marine Corps, likely focusing on areas such as advanced materials, propulsion systems, or C4ISR capabilities. Success metrics would typically be defined in subsequent task orders, focusing on prototype development, feasibility studies, and demonstration of novel concepts. The broad nature of the BAA implies flexibility in defining specific outcomes as research progresses.

Given the cost-plus-fixed-fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure efficient use of taxpayer funds?

Cost-plus-fixed-fee contracts require stringent government oversight. Mechanisms include detailed review of incurred costs, negotiation of a reasonable fixed fee based on anticipated effort, and clear definition of contract scope. The Department of the Navy would likely employ program managers and contracting officers to monitor expenditures, review contractor performance, and ensure that costs remain within budgeted limits and are directly tied to contract objectives.

How does this long-term R&D investment align with current and future strategic priorities for the Navy and Marine Corps?

This investment likely supports strategic priorities by fostering innovation in areas critical for maintaining naval superiority and addressing emerging threats. Long-range R&D is essential for developing next-generation capabilities, whether in areas like autonomous systems, cyber warfare, hypersonics, or advanced sensing. The sustained funding over nearly a decade suggests a commitment to foundational research that underpins future technological dominance.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 999

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, 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: $23,781,055

Exercised Options: $23,781,055

Current Obligation: $23,520,184

Actual Outlays: $593,582

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $7,939,256

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline