DoD Awards $63.5M to Electric Boat Corp for R&D, Sole-Source Contract
Contract Overview
Contract Amount: $63,534,419 ($63.5M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2006-11-14
End Date: 2015-08-21
Contract Duration: 3,202 days
Daily Burn Rate: $19.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONTRACT AWARD. FOR FUNDING PURPOSES ONLY, ACRN AA
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $63.5 million to ELECTRIC BOAT CORPORATION for work described as: CONTRACT AWARD. FOR FUNDING PURPOSES ONLY, ACRN AA Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Sole-source award to Electric Boat Corporation raises competition concerns. 3. Long contract duration (3202 days) suggests complex, ongoing research. 4. High dollar value for a single, non-competed award.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bids, it's difficult to assess if the $63.5M price is optimal.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for a $63.5M contract may result in suboptimal pricing, impacting taxpayer value.
Public Impact
Taxpayers may be paying a premium due to the absence of competition. The long-term nature of the contract could indicate critical but potentially costly research. Lack of transparency in the procurement process raises accountability questions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Focus on R&D
- Award to established corporation
Sector Analysis
This award falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure value for money, especially in sole-source scenarios.
Small Business Impact
The awardee, Electric Boat Corporation, is a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure the government is receiving fair value and that the research objectives are being met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration increases risk exposure.
- Lack of small business participation.
- Limited transparency on specific R&D objectives.
Tags
research-and-development-in-the-physical, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.5 million to ELECTRIC BOAT CORPORATION. CONTRACT AWARD. FOR FUNDING PURPOSES ONLY, ACRN AA
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 $63.5 million.
What is the period of performance?
Start: 2006-11-14. End: 2015-08-21.
What specific research and development activities are covered under this $63.5M contract, and how will their progress and value be measured?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences.' Specific activities are not detailed in the provided data. Progress and value measurement would typically be outlined in the contract's statement of work and require diligent government oversight, including milestone reviews and performance assessments, to ensure taxpayer funds are used effectively towards achieving defined R&D objectives.
Given the sole-source nature, what justification was provided for not competing this contract, and what steps were taken to ensure a fair and reasonable price?
Sole-source justifications often cite unique capabilities, urgent needs, or lack of viable alternatives. Without the specific justification, it's presumed the Department of the Navy determined Electric Boat Corporation was the only source. Steps to ensure fair pricing might include historical cost analysis, independent government cost estimates, or benchmarking against similar, though not identical, sole-source procurements.
How does the Cost Plus Fixed Fee structure for this long-term R&D contract mitigate risks of cost overruns and ensure efficient use of funds?
Cost Plus Fixed Fee (CPFF) contracts aim to control costs by adding a fixed fee to the actual allowable costs. For R&D, this structure can incentivize the contractor to complete the work efficiently to maximize their profit margin. However, it still carries risk if the initial cost estimates are inaccurate or if unforeseen technical challenges arise, requiring robust government oversight to manage expenditures and ensure the fixed fee remains appropriate.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $83,470,329
Exercised Options: $83,470,329
Current Obligation: $63,534,419
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-11-14
Current End Date: 2015-08-21
Potential End Date: 2015-08-21 00:00:00
Last Modified: 2015-10-14
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