Navy Awards $64.3M Contract for Ship Building and Repair to Electric Boat Corporation

Contract Overview

Contract Amount: $64,335,714 ($64.3M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2003-04-11

End Date: 2004-10-15

Contract Duration: 553 days

Daily Burn Rate: $116.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $64.3 million to ELECTRIC BOAT CORPORATION for work described as: Key points: 1. Contract awarded to Electric Boat Corporation for $64.3 million. 2. The contract falls under the Ship Building and Repairing sector. 3. Awarded by the Department of the Navy, indicating a defense-related procurement. 4. The contract duration is 553 days, ending in October 2004.

Value Assessment

Rating: questionable

The contract value is $64.3 million. Without comparable contracts or detailed cost breakdowns, assessing the value for money is difficult. The fixed-price nature suggests some cost certainty, but the lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Taxpayers may have paid more due to the absence of competition. The contract supports shipbuilding and repair capabilities, crucial for national defense. The award impacts the Electric Boat Corporation and its workforce in Connecticut.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing due to non-competitive nature.
Potential for inflated costs without competitive bidding.

Positive Signals

Supports critical shipbuilding and repair infrastructure.
Firm fixed-price contract provides some cost predictability.

Sector Analysis

The Ship Building and Repairing sector is a critical component of national defense, often involving complex and high-value contracts. Spending in this sector can be substantial, and competitive bidding is typically encouraged to ensure cost-effectiveness.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing the contract. Oversight should ensure that the pricing is fair and reasonable, even in the absence of competition.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in price determination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.3 million to ELECTRIC BOAT CORPORATION. See the official description on USAspending.

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 $64.3 million.

What is the period of performance?

Start: 2003-04-11. End: 2004-10-15.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to determine the exact reason. However, such awards require rigorous justification to ensure they are in the government's best interest and that taxpayer funds are used efficiently.

How was the price determined to be fair and reasonable for this non-competed contract?

For sole-source contracts, agencies must still perform price analysis to ensure the price is fair and reasonable. This often involves comparing the proposed price to historical prices for similar items, using cost-plus-incentive-fee structures, or conducting detailed cost breakdowns with the contractor. The absence of competition means this analysis is crucial for preventing overpayment.

What is the long-term strategic value of awarding this contract to Electric Boat Corporation without competition?

Awarding contracts without competition can sometimes be strategically necessary to maintain critical industrial capabilities or support a specific, unique supplier essential for national security. However, it also risks creating a dependency and potentially stifling innovation or cost efficiencies that competition might otherwise foster. The long-term value depends on the specific strategic context.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline