DoD's $7.3M R&D contract to Draper Lab for advanced undersea systems shows strong competition

Contract Overview

Contract Amount: $7,365,781 ($7.4M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-12

End Date: 2029-01-14

Contract Duration: 1,829 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FSUSW INP UUV

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: FSUSW INP UUV Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Focus on advanced research and development suggests potential for technological innovation. 3. Long contract duration of 1829 days implies a significant, multi-year commitment. 4. The contractor, Draper Lab, has a strong track record in defense R&D. 5. Cost-plus-fixed-fee structure incentivizes cost control while allowing for R&D flexibility. 6. The contract falls within a broad R&D NAICS code, suggesting potential for diverse applications.

Value Assessment

Rating: good

The contract's value of $7.3 million for a 5-year R&D effort appears reasonable given the specialized nature of advanced undersea systems. Benchmarking against similar complex R&D contracts is challenging due to unique technical requirements. However, the fixed fee component suggests a degree of cost certainty for the government. The contractor's established expertise in this domain further supports the assessed value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors were invited to bid. The specific number of bidders is not provided, but the designation implies a competitive environment that should drive price discovery and potentially lead to more favorable terms for the government. This approach maximizes the opportunity to select the best technical solution at a competitive price.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where multiple companies vie for the contract, leading to better pricing and innovation.

Public Impact

The Department of the Navy benefits from advancements in undersea warfare technology. This contract supports the development of cutting-edge research and development in physical, engineering, and life sciences. The primary beneficiaries are likely the warfighter and national security through enhanced defense capabilities. Workforce implications include highly skilled R&D professionals and engineers, primarily in Massachusetts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts for complex R&D.
Long-term reliance on a single contractor for critical technology development.
Scope creep in R&D projects can lead to budget and schedule challenges.
Ensuring continued innovation beyond the initial contract period.
Dependence on specialized personnel and potential for knowledge transfer risks.

Positive Signals

Awarded through full and open competition, indicating strong market interest and vetting.
Contractor (Draper Lab) has a proven track record in advanced defense systems.
Fixed fee component provides some cost predictability for the government.
Focus on R&D aligns with strategic defense modernization goals.
Long contract duration allows for sustained development and integration.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. The market for specialized undersea defense technology is highly concentrated, with a few key players possessing the necessary expertise and security clearances. The government's investment in this area is critical for maintaining technological superiority. Comparable spending benchmarks are difficult to establish due to the unique nature of defense R&D, but significant investments are typical for next-generation military capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The nature of advanced R&D in defense often requires specialized capabilities and facilities that may favor larger, established contractors. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this critical research area.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and milestone achievement. Transparency is facilitated through contract award databases, though specific R&D details may be classified or proprietary. The Inspector General's office for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Advanced Undersea Systems Development
Naval Research and Development Programs
Defense Research and Engineering
Autonomous Underwater Vehicles (AUVs)
Submarine Technology Research

Risk Flags

Potential for cost overruns in CPFF R&D contract.
Long contract duration increases exposure to changing technological landscapes and program priorities.
Specialized nature of R&D may limit future contractor options if knowledge is not effectively transferred.
Dependence on a single contractor for critical technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to THE CHARLES STARK DRAPER LABORATORY, INC.. FSUSW INP UUV

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2024-01-12. End: 2029-01-14.

What is the specific technical scope of "Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)" for this contract?

The NAICS code 541715 broadly covers R&D in physical, engineering, and life sciences. For this specific contract with THE CHARLES STARK DRAPER LABORATORY, INC., the focus is on advanced undersea systems. While the exact technical details are likely proprietary or classified, this typically involves areas such as advanced sensor development, novel propulsion systems for underwater vehicles, acoustic technologies, underwater communication systems, autonomous navigation, and potentially materials science related to deep-sea operations. The exclusion of nanotechnology and biotechnology suggests the R&D is centered on more traditional engineering and physics principles applied to the undersea domain.

How does the Cost Plus Fixed Fee (CPFF) contract type balance risk and reward for the government and contractor?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D efforts where the final costs are uncertain. The government agrees to pay the contractor's actual allowable costs plus a fixed fee, which represents the contractor's profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it shifts some risk to the government, as the total cost can exceed initial estimates if actual costs are higher than anticipated. The fixed fee provides a predictable profit margin for the contractor, encouraging them to undertake complex and potentially risky R&D projects.

What is The Charles Stark Draper Laboratory's track record with similar advanced undersea system contracts?

The Charles Stark Draper Laboratory, Inc. has a long and distinguished history of developing advanced technologies for the U.S. military, particularly in areas related to guidance, navigation, and control systems, which are critical for undersea applications. They have been a key player in developing systems for submarines, torpedoes, and other naval platforms. Their expertise extends to inertial navigation, sonar processing, and autonomous systems. Given their established role and deep technical capabilities in these specialized fields, their selection for this advanced undersea systems R&D contract is consistent with their historical performance and core competencies.

What are the potential long-term implications of this $7.3 million investment in advanced undersea systems?

This $7.3 million investment is likely aimed at developing next-generation capabilities that could significantly enhance the U.S. Navy's operational effectiveness in the undersea domain. Potential long-term implications include improved intelligence, surveillance, and reconnaissance (ISR) capabilities, enhanced anti-submarine warfare (ASW) effectiveness, development of more capable autonomous underwater vehicles (AUVs) for various missions, and advancements in underwater communication and networking. Such R&D efforts are crucial for maintaining a technological edge against potential adversaries and ensuring national security in a strategically vital environment.

How does the contract's duration (1829 days) impact the assessment of its value and risk?

The contract duration of 1829 days, approximately five years, is substantial for an R&D effort. This long duration suggests a complex, multi-phase project requiring sustained development and testing. From a value perspective, it allows for deeper exploration and maturation of technologies, potentially leading to more robust and integrated solutions. However, a longer duration also increases the inherent risks associated with R&D, such as technological obsolescence, shifting program priorities, and potential cost growth over time. The fixed fee component helps mitigate some financial risk for the contractor, but the government must carefully manage scope and milestones throughout the extended period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001423SB001

Offers Received: 999

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: $23,720,969

Exercised Options: $23,720,969

Current Obligation: $7,365,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline