Navy Awards $76.8M Nuclear Regional Maintenance Contract to Electric Boat Corp

Contract Overview

Contract Amount: $76,816,910 ($76.8M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2009-10-07

End Date: 2012-08-25

Contract Duration: 1,053 days

Daily Burn Rate: $73.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROVIDE A NUCLEAR REGIONAL MAINT DEPT

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $76.8 million to ELECTRIC BOAT CORPORATION for work described as: PROVIDE A NUCLEAR REGIONAL MAINT DEPT Key points: 1. Contract awarded to Electric Boat Corporation for nuclear regional maintenance. 2. Significant value of $76.8 million over a 3-year period. 3. Awarded by the Department of the Navy, indicating a defense sector focus. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type offers less incentive for cost control compared to fixed-price contracts. Without clear benchmarks or competitive pricing, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this substantial contract raises concerns about taxpayer value and the potential for inflated costs.

Public Impact

Impacts naval readiness and maintenance capabilities. Potential for increased costs due to sole-source award. Affects the specific region covered by the nuclear maintenance department.

Waste & Efficiency Indicators

Waste Risk Score: 40 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns

Positive Signals

Ensures critical nuclear maintenance capability

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense infrastructure. Spending benchmarks for specialized nuclear maintenance are highly variable and dependent on specific requirements.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective service delivery. Further oversight may be needed to validate costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pressure.
Cost-plus contract type increases risk of overspending.
Potential for cost overruns without strict oversight.
Limited transparency on justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.8 million to ELECTRIC BOAT CORPORATION. PROVIDE A NUCLEAR REGIONAL MAINT DEPT

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 $76.8 million.

What is the period of performance?

Start: 2009-10-07. End: 2012-08-25.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it often relates to specialized expertise or existing infrastructure.

What are the projected cost overruns associated with this Cost Plus Fixed Fee contract?

Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Without detailed cost performance data and projections, it's impossible to quantify potential overruns. Robust oversight is crucial to monitor expenditures.

How does the performance of Electric Boat Corporation on this contract compare to industry benchmarks for nuclear regional maintenance?

Comparing performance requires access to specific metrics like on-time delivery, quality of work, and adherence to budget. Without this data, a direct comparison to industry benchmarks is not feasible. The lack of competition also makes it harder to gauge efficiency relative to potential alternatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: N0002409R4410

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: $77,999,836

Exercised Options: $77,999,836

Current Obligation: $76,816,910

Contract Characteristics

Cost or Pricing Data: YES

Timeline