DoD's $100M+ Engineering Services Contract with Electric Boat Corporation: A Deep Dive

Contract Overview

Contract Amount: $100,075,105 ($100.1M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2005-12-31

End Date: 2010-09-30

Contract Duration: 1,734 days

Daily Burn Rate: $57.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $100.1 million to ELECTRIC BOAT CORPORATION for work described as: Key points: 1. Significant contract value exceeding $100 million awarded to a single large business. 2. Limited competition indicated by 'NOT COMPETED' status. 3. Potential risk associated with cost-plus contracts and long duration. 4. Engineering services sector, crucial for defense readiness.

Value Assessment

Rating: questionable

The contract's cost-plus fixed fee structure with a long duration (2005-2010) raises concerns about potential cost overruns and value for money. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude likely results in a higher taxpayer burden due to the absence of market-driven price reductions.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The long contract duration could mean outdated technology or services by its end. Dependence on a single contractor for critical engineering services poses a strategic risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration
Lack of small business participation

Positive Signals

Awarded to a known entity in the defense sector
Contract supports critical defense needs

Sector Analysis

This contract falls within the engineering services sector, which is vital for the design, development, and maintenance of complex defense systems. Spending in this area is typically high due to the specialized nature of the work.

Small Business Impact

The data indicates no small business participation in this contract, which is common for large, specialized defense contracts. This limits opportunities for smaller businesses to contribute to critical defense projects.

Oversight & Accountability

The 'CT' (Contract Type) and 'AW' (Awarding Agency) fields suggest oversight mechanisms are in place, but the lack of competition and cost-plus nature warrant closer scrutiny of expenditures and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Lack of competitive pricing pressure
Long contract duration may lead to inefficiencies
Limited transparency on specific services rendered
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $100.1 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 $100.1 million.

What is the period of performance?

Start: 2005-12-31. End: 2010-09-30.

What specific engineering services were provided under this contract, and how did they contribute to the Department of the Navy's mission?

The contract was for engineering services, likely related to naval platforms or systems, given the awardee and agency. These services are crucial for maintaining and advancing the technological capabilities of the fleet, encompassing design, analysis, testing, and integration support necessary for complex defense assets.

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

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling needs. Specific justifications for this contract would need to be detailed in the contract file.

How was the 'fixed fee' component of this Cost Plus Fixed Fee (CPFF) contract determined, and what mechanisms were in place to control costs?

The fixed fee in a CPFF contract is negotiated upfront and represents the contractor's profit. It's typically based on the estimated cost of the effort, the complexity, and the risk involved. Cost controls would rely on government oversight, audits, and performance metrics to ensure the contractor operates efficiently within the estimated cost base.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,253,009

Exercised Options: $100,253,009

Current Obligation: $100,075,105

Contract Characteristics

Cost or Pricing Data: YES

Timeline