DoD's $32.5M Contract for Ship Maintenance Awarded to Electric Boat Corp. with No Competition

Contract Overview

Contract Amount: $32,467,602 ($32.5M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2010-02-14

End Date: 2014-11-18

Contract Duration: 1,738 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SHIP'S FORCE MANNING SHIPPINGPORT (ARDM-4)

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to ELECTRIC BOAT CORPORATION for work described as: SHIP'S FORCE MANNING SHIPPINGPORT (ARDM-4) Key points: 1. Significant spending on ship maintenance highlights the ongoing need for naval readiness. 2. The sole-source award to Electric Boat Corporation raises questions about potential cost efficiencies. 3. Lack of competition may limit opportunities for other qualified shipyards and potentially increase costs. 4. The IT sector is not directly involved, but the defense sector relies heavily on specialized maintenance.

Value Assessment

Rating: questionable

The contract's total value of $32.5 million for ship maintenance is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services from other providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Electric Boat Corporation. This approach bypasses the standard competitive process, potentially impacting price discovery and limiting the government's ability to secure the best possible price.

Taxpayer Impact: The absence of competition could lead to higher costs for taxpayers if alternative, more cost-effective solutions were available.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding for essential ship maintenance. The Navy's reliance on a single contractor for this service could create vulnerabilities in the supply chain. This contract underscores the significant financial investment required to maintain naval assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Award
Potential for Overpricing

Positive Signals

Essential Service Provided
Established Contractor

Sector Analysis

The defense sector, particularly naval operations, requires extensive and specialized maintenance for its fleet. Spending benchmarks for ship building and repair can vary widely based on vessel type, complexity, and the specific services required. This contract falls within the realm of specialized ship repair.

Small Business Impact

This contract does not appear to have involved small businesses, as it was a sole-source award to a large corporation. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of the Navy adequately justified the lack of competition and obtained fair pricing. Oversight should focus on the justification process and post-award performance monitoring.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for inflated costs due to lack of competition.
Limited transparency into the justification for sole-sourcing.
No clear benefit to small businesses indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to ELECTRIC BOAT CORPORATION. SHIP'S FORCE MANNING SHIPPINGPORT (ARDM-4)

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 $32.5 million.

What is the period of performance?

Start: 2010-02-14. End: 2014-11-18.

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

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other sources. For naval ship maintenance, specific technical expertise, proprietary knowledge of the vessel, or limited shipyard capacity could be cited. A thorough review would examine the documented rationale provided by the Department of the Navy to ensure it meets federal procurement regulations.

How does the cost of this contract compare to similar ship maintenance contracts awarded competitively?

Without access to a benchmark of competitively awarded contracts for similar vessel classes and maintenance scopes, a direct cost comparison is challenging. However, the absence of competition inherently raises concerns about whether the government secured the most cost-effective solution. Analysis would require identifying comparable contracts and adjusting for differences in scope, vessel age, and market conditions.

What is the potential long-term impact on naval readiness and cost-effectiveness if sole-source contracts become the norm for ship maintenance?

A trend towards sole-source contracts for ship maintenance could diminish competitive pressure, potentially leading to inflated prices and reduced innovation over time. It might also limit the development of a broader industrial base capable of supporting the fleet, creating dependencies. This could negatively impact long-term cost-effectiveness and potentially compromise naval readiness if specialized maintenance capabilities become concentrated and less accessible.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002410R4301

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

Financial Breakdown

Contract Ceiling: $32,467,602

Exercised Options: $32,467,602

Current Obligation: $32,467,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline