Navy's $23.8M Dry Dock Capability Contract Awarded to Electric Boat Corporation

Contract Overview

Contract Amount: $23,800,000 ($23.8M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-28

End Date: 2016-12-30

Contract Duration: 3,655 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DRY DOCK CAPABILITY

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to ELECTRIC BOAT CORPORATION for work described as: DRY DOCK CAPABILITY Key points: 1. Contract awarded for essential dry dock capabilities, supporting naval infrastructure. 2. Sole-source award to Electric Boat Corporation indicates a specialized or unique requirement. 3. Long contract duration of over 10 years suggests a strategic, long-term need. 4. Firms Fixed Price contract type provides cost certainty for the government. 5. The contract falls under Facilities Support Services, a critical operational category. 6. No small business set-aside was applied, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract value of $23.8 million over approximately 10 years averages to about $2.38 million per year. Without specific details on the scope of 'Dry Dock Capability,' direct comparison to similar contracts is challenging. However, for facilities support services of this magnitude, the pricing appears within a reasonable range, assuming the services are comprehensive and critical to naval operations. The lack of competition, however, prevents a robust assessment of whether this represents the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Electric Boat Corporation. This suggests that either Electric Boat was the only entity capable of providing the required dry dock capabilities, or there were specific circumstances justifying a non-competitive award, such as a critical need or a lack of available alternatives. The absence of a competitive bidding process means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a wider field of bidders.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government cannot leverage competitive pressures to secure the best possible pricing. It also limits opportunities for new or smaller businesses to enter into contracts with the agency.

Public Impact

The primary beneficiary is the Department of the Navy, ensuring critical dry dock capabilities for its fleet. Services delivered likely include maintenance, repair, and operational support for naval vessels requiring dry dock access. The geographic impact is centered in Connecticut, where Electric Boat Corporation is located and likely operates. Workforce implications include the potential for sustained employment at Electric Boat and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long-term nature of the contract may reduce flexibility if needs change.
Lack of small business participation could be a missed opportunity for economic inclusion.

Positive Signals

Firms Fixed Price contract provides budget certainty.
Award to a known entity (Electric Boat) suggests a potentially reliable provider for specialized services.
Contract supports critical naval infrastructure, ensuring operational readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. Within the defense sector, such services are crucial for maintaining naval vessels and shore facilities. The market for specialized dry dock capabilities is often concentrated among a few key players, particularly for large naval assets, which can influence competition dynamics. Comparable spending benchmarks are difficult to establish without more granular service details, but large-scale facilities support for defense agencies typically represents significant annual investment.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract were likely limited. The absence of set-asides in large, sole-source contracts can sometimes be a point of concern for agencies aiming to foster a robust small business ecosystem and ensure broad economic impact from federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key areas for oversight. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Shipyard Operations and Maintenance
Ship Repair and Overhaul Services
Defense Infrastructure Support
Facilities Maintenance Contracts
Submarine Construction and Maintenance Support

Risk Flags

Sole-source award may limit price competition.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to ELECTRIC BOAT CORPORATION. DRY DOCK CAPABILITY

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 $23.8 million.

What is the period of performance?

Start: 2006-12-28. End: 2016-12-30.

What specific dry dock capabilities are being provided under this contract, and how do they support the Navy's operational requirements?

The contract data indicates the service is 'DRY DOCK CAPABILITY' (NAICS 561210). This broadly refers to the provision of facilities and services necessary for the maintenance, repair, and overhaul of naval vessels when they are out of the water. Specific capabilities could include dry dock space, associated utilities (power, water, compressed air), specialized equipment for hull work, painting, and structural repairs, as well as environmental controls and safety measures. These capabilities are fundamental to ensuring the operational readiness and longevity of the Navy's fleet, allowing for routine maintenance, emergency repairs, and major refits that cannot be performed while vessels are at sea or docked in the water.

What was the justification for awarding this contract on a sole-source basis to Electric Boat Corporation?

The contract was awarded as 'NOT COMPETED' (CT), indicating a sole-source justification. While the specific rationale is not detailed in the provided data, common reasons for sole-source awards in defense contracting include: 1) Unique capabilities: Electric Boat is a major builder of submarines for the U.S. Navy, possessing highly specialized facilities and expertise critical for certain naval vessel maintenance and construction. 2) Urgent and compelling need: If a critical operational requirement arose that only Electric Boat could meet within the necessary timeframe. 3) Lack of market research: If thorough market research failed to identify any other responsible sources capable of meeting the requirement. Without the official justification document (e.g., a Justification and Approval - J&A), the precise reason remains speculative, but it likely stems from Electric Boat's unique position in supporting specific naval assets.

How does the $23.8 million contract value compare to historical spending on similar dry dock or facilities support services by the Navy?

The provided data shows a total award of $23.8 million for this contract, which spanned from December 2006 to December 2016 (approximately 10 years). This averages to about $2.38 million per year. Comparing this to historical spending requires access to broader contract databases and specific service definitions. However, given Electric Boat's role in supporting major naval platforms, particularly submarines, this annual figure for specialized dry dock capabilities might be considered moderate to significant, depending on the scope. Without comparable contracts for similar services or platforms, a precise benchmark is difficult. However, large-scale shipyard operations and maintenance contracts can run into hundreds of millions or even billions of dollars annually, suggesting this contract, while substantial, represents a specific, potentially niche, capability within the broader naval infrastructure budget.

What are the potential risks associated with a long-term, sole-source contract for critical infrastructure support?

A long-term, sole-source contract presents several risks. Firstly, the lack of competition can lead to reduced price pressure, potentially resulting in higher costs for the government over the contract's life compared to a competitively awarded contract. Secondly, there's a risk of complacency from the contractor, as there is no immediate threat of losing the business to a competitor, which could impact service quality or innovation. Thirdly, the government may become overly reliant on a single provider, making it difficult and costly to switch contractors or bring the capability in-house if circumstances change or performance issues arise. Finally, the absence of competitive benchmarking makes it harder to ensure the government is consistently receiving fair market value for the services rendered throughout the contract duration.

What is Electric Boat Corporation's track record with the Department of the Navy, particularly regarding facilities support and major contracts?

Electric Boat Corporation (EBC) has a long and established track record with the Department of the Navy, primarily as the designer and builder of nuclear-powered submarines. Their relationship with the Navy is deep and strategic, involving complex, high-value contracts for submarine construction, overhaul, and maintenance. EBC is a critical component of the U.S. undersea warfare enterprise. Given this extensive history and specialized expertise, particularly in managing large, complex facilities and supporting nuclear-powered vessels, EBC is often a sole-source or prime contractor for many related services. Their track record generally indicates a high level of technical competence and reliability in fulfilling the Navy's most demanding requirements, though the scale and nature of their work also mean significant contract values and long-term engagements.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002406R4416

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $23,800,000

Exercised Options: $23,800,000

Current Obligation: $23,800,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline