Navy Awards $79.8M Contract to Electric Boat for USS Hartford Repairs, Lacking Competition

Contract Overview

Contract Amount: $79,806,174 ($79.8M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2009-08-05

End Date: 2011-08-31

Contract Duration: 756 days

Daily Burn Rate: $105.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PREPARATION AND ACCOMPLISHMENT OF REPAIRS, RESTORATION AND ACCELERATED MAINTENANCE ON USS HARTFORD (SSN 768) DURING A RESTRICTED AVAILABILITY

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $79.8 million to ELECTRIC BOAT CORPORATION for work described as: PREPARATION AND ACCOMPLISHMENT OF REPAIRS, RESTORATION AND ACCELERATED MAINTENANCE ON USS HARTFORD (SSN 768) DURING A RESTRICTED AVAILABILITY Key points: 1. Significant contract value for ship maintenance. 2. Sole-source award raises questions about price discovery. 3. Long-term availability contract suggests ongoing maintenance needs. 4. Focus on submarine maintenance highlights a critical defense sector.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar submarine availabilities is difficult without more detailed cost breakdowns.

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 offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these repair services.

Public Impact

Ensures operational readiness of a key naval asset. Supports specialized shipbuilding and repair jobs. Impacts the long-term lifecycle cost of the USS Hartford.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long duration

Positive Signals

Essential maintenance for national security asset

Sector Analysis

This contract falls within the Ship Building and Repairing sector, which is a critical component of national defense. Spending in this area is often driven by the need to maintain aging fleets and ensure operational readiness.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The nature of submarine repair typically requires specialized facilities and expertise, which may limit small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the work performed is necessary and efficient. Tracking performance against the fixed fee is crucial.

Related Government Programs

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

Risk Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns
Long contract duration
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.8 million to ELECTRIC BOAT CORPORATION. PREPARATION AND ACCOMPLISHMENT OF REPAIRS, RESTORATION AND ACCELERATED MAINTENANCE ON USS HARTFORD (SSN 768) DURING A 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 $79.8 million.

What is the period of performance?

Start: 2009-08-05. End: 2011-08-31.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if other shipyards or repair facilities were assessed for their ability to perform the work or if specific circumstances necessitated awarding the contract directly to Electric Boat Corporation.

How does the fixed fee in this Cost Plus Fixed Fee contract compare to industry standards for similar submarine availabilities?

Assessing the reasonableness of the fixed fee requires detailed cost data and comparison with benchmarks for similar submarine repair availabilities. Factors like the scope of work, vessel condition, and labor rates influence the fee. Without this granular data, it's difficult to determine if the fee is competitive or inflated due to the lack of competition.

What mechanisms are in place to ensure the efficiency and effectiveness of repairs under this long-term, sole-source contract?

Effectiveness relies on robust government oversight, including quality assurance inspections and performance monitoring. For a sole-source, cost-plus contract, clear performance metrics and regular reviews are essential to ensure the contractor is delivering quality work efficiently and that taxpayer funds are being used judiciously.

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: N0002409R4411

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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,966,792

Exercised Options: $85,006,927

Current Obligation: $79,806,174

Contract Characteristics

Cost or Pricing Data: NO

Timeline