Navy awards $37.4M contract to Electric Boat for USS Providence (SSN 719) dry dock availability
Contract Overview
Contract Amount: $37,427,322 ($37.4M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2009-01-14
End Date: 2010-12-31
Contract Duration: 716 days
Daily Burn Rate: $52.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: USS PROVIDENCE (SSN 719) DRY DOCK SELECTED RESTRICTED AVAILABILITY
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $37.4 million to ELECTRIC BOAT CORPORATION for work described as: USS PROVIDENCE (SSN 719) DRY DOCK SELECTED RESTRICTED AVAILABILITY Key points: 1. Contract awarded to Electric Boat Corporation for dry dock services. 2. The contract is a Cost Plus Incentive Fee type. 3. The availability period spans from January 2009 to December 2010. 4. This is a significant contract for ship repair and maintenance within the defense sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The award amount of $37.4M needs to be benchmarked against similar submarine availability contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for the government as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures operational readiness of a key naval asset, the USS Providence. Supports critical shipbuilding and repair infrastructure and workforce. Impacts the strategic capabilities of the U.S. Navy's submarine fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Incentive Fee contract type carries inherent cost overrun risk.
- Lack of small business participation noted.
Positive Signals
- Maintains critical naval asset readiness.
- Supports specialized shipbuilding and repair capabilities.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, specifically for naval vessels. Spending benchmarks for submarine availability can vary significantly based on the scope of work and vessel class.
Small Business Impact
The data indicates that neither small business nor small disadvantaged business participation was a factor in this contract award. This suggests a lack of opportunity for small businesses in this specific procurement.
Oversight & Accountability
The 'AW' code 'DCA' might indicate a specific type of award or oversight mechanism, but further clarification is needed. The Cost Plus Incentive Fee structure requires robust oversight to manage costs effectively.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Potential for cost overruns
- Lack of small business participation
- Limited price discovery
Tags
ship-building-and-repairing, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to ELECTRIC BOAT CORPORATION. USS PROVIDENCE (SSN 719) DRY DOCK SELECTED RESTRICTED AVAILABILITY
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 $37.4 million.
What is the period of performance?
Start: 2009-01-14. End: 2010-12-31.
What was the justification for the sole-source award to Electric Boat Corporation for this specific availability?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For complex naval vessels like submarines, this could be due to specialized facilities, unique technical expertise, or proprietary knowledge held by a single contractor, such as Electric Boat's historical role in submarine construction and maintenance.
How does the final cost compare to the initial award amount and the incentive fee structure?
Without the final cost data, it's impossible to definitively assess the performance against the Cost Plus Incentive Fee structure. This contract type aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government, but requires careful monitoring of performance metrics and expenditures.
What is the typical duration and cost for a selected restricted availability for a submarine of this class?
The duration of 716 days (approx. 2 years) and the initial award of $37.4M provide a baseline. However, costs for submarine availabilities are highly variable, depending on the specific maintenance, repair, and modernization requirements. Benchmarking against similar contracts for the same submarine class would be necessary for a precise comparison.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002408R4407
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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
Financial Breakdown
Contract Ceiling: $41,841,685
Exercised Options: $41,841,685
Current Obligation: $37,427,322
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-01-14
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2015-08-27
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