Navy Awards $322.9M Contract to Electric Boat Corp for Ship Maintenance and Repair Services

Contract Overview

Contract Amount: $32,294,166 ($32.3M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2002-07-29

End Date: 2015-01-01

Contract Duration: 4,539 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200211!025371!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4063 !A!N! !N! !20020729!20060930!963737366!963737366!001381284!N!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW LONDON !CONN !+000002172854!N!N!000061060615!J019!MAINT & REPAIR OF EQ/SHIPS-SML CRAFT-DOCKS !A3 !SHIPS !2SLJ!SERVICE CRAFT !561210!E! !3!B!S! ! !D!20020930!B! ! !A! !D!U!U!2!001!N!3A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340, UNITED STATES OF AMERICA

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to ELECTRIC BOAT CORPORATION for work described as: 200211!025371!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4063 !A!N! !N! !20020729!20060930!963737366!963737366!001381284!N!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW LONDON !CONN !+000002172854!N!N!000061060615!J019!MAINT & REPA… Key points: 1. The contract, valued at $322.9 million, is for maintenance and repair of equipment and ships. 2. Electric Boat Corporation, a sole-source provider, will perform the services. 3. The contract duration is 4539 days, spanning from July 2002 to January 2015. 4. This award falls under Facilities Support Services, with a primary focus on service craft.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is substantial, but without detailed cost breakdowns or benchmarks for similar services, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for the government compared to a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive pressure.

Public Impact

Ensures continued operational readiness for naval service craft through essential maintenance and repair. Supports a critical defense contractor, Electric Boat Corporation, and its workforce in Connecticut. Long contract duration suggests a sustained need for these specialized services within the Navy. Potential for cost inefficiencies due to sole-source award and cost-plus contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus contract type carries inherent risk of cost overruns.
Long contract duration may not reflect current market conditions or needs.
Lack of detailed cost data makes value assessment difficult.

Positive Signals

Ensures critical maintenance for naval assets.
Supports a key defense industrial base company.
Provides long-term service stability for the Navy.

Sector Analysis

This contract falls under Facilities Support Services, specifically related to ship maintenance and repair. The spending benchmark for this sector can vary widely based on the type and scale of services required, but large sole-source awards for specialized maintenance often represent significant investments.

Small Business Impact

The data indicates that this contract was not awarded to small businesses. The primary contractor, Electric Boat Corporation, is a large entity. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not pursuing competitive bidding. Oversight would be crucial to ensure cost controls and performance standards are met throughout the contract's extended duration.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Long contract duration
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to ELECTRIC BOAT CORPORATION. 200211!025371!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4063 !A!N! !N! !20020729!20060930!963737366!963737366!001381284!N!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW LONDON !CONN !+000002172854!N!N!000061060615!J019!MAINT & REPAIR OF EQ/SHIPS-SML CRAFT-DOCKS !A3 !SHIPS !2SLJ!SERVICE CRAFT !561210!E! !3!B!S! ! !D!20020930!B! ! !A! !D!U!U!2!001!N!3A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

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 $32.3 million.

What is the period of performance?

Start: 2002-07-29. End: 2015-01-01.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the Navy likely determined that Electric Boat Corporation possessed the specialized expertise and facilities essential for the maintenance and repair of specific naval assets, making competition impractical or detrimental to mission readiness. Further review of the contract file would be needed to confirm the precise rationale and explore if any limited competition or other procurement strategies were evaluated.

How does the cost-plus fixed fee structure impact the government's ability to control costs for this long-term maintenance contract?

The Cost-Plus Fixed Fee (CPFF) structure means the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost can escalate if actual costs exceed estimates. This structure can incentivize contractors to control costs to maximize their fee relative to actual expenses, but it also places a significant burden on the government to meticulously audit and approve all incurred costs to prevent overpayment and ensure the fixed fee remains reasonable for the scope of work performed over the contract's extensive duration.

What performance metrics and oversight mechanisms were in place to ensure the effectiveness of maintenance and repair services provided by Electric Boat Corporation?

Effective oversight for such a critical and long-term contract would typically involve detailed performance work statements (PWS), key performance indicators (KPIs), and regular progress reviews. The Navy would likely employ quality assurance personnel to monitor the quality and timeliness of repairs, inspect completed work, and ensure compliance with technical specifications. Mechanisms such as service level agreements (SLAs) and potential penalties for non-performance, alongside regular reporting requirements from Electric Boat Corporation, would be crucial for ensuring the effectiveness of the services and the overall value delivered to the fleet.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, 06340

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline