DoD's $23.6M Nuclear Maintenance Contract Awarded to Electric Boat Corp
Contract Overview
Contract Amount: $23,646,156 ($23.6M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2012-08-06
End Date: 2013-04-27
Contract Duration: 264 days
Daily Burn Rate: $89.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NUCLEAR REGIONAL MAINTENANCE DEPARTMENT
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340
Plain-Language Summary
Department of Defense obligated $23.6 million to ELECTRIC BOAT CORPORATION for work described as: NUCLEAR REGIONAL MAINTENANCE DEPARTMENT Key points: 1. Contract awarded to a single, established provider. 2. Limited competition due to specialized nature of nuclear maintenance. 3. Potential for cost overruns with Cost Plus Fixed Fee structure. 4. Focus on critical shipbuilding and repair sector.
Value Assessment
Rating: fair
The contract value of $23.6M for a 264-day duration appears reasonable for specialized nuclear maintenance. However, without specific per-unit cost data or benchmarks for similar nuclear maintenance tasks, a precise value assessment is difficult.
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 leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher taxpayer costs compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness of nuclear-powered vessels. Supports critical infrastructure within the naval fleet. Maintains specialized workforce and technical expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Addresses critical maintenance needs for naval assets.
- Awarded to a known entity with relevant experience.
Sector Analysis
This contract falls within the shipbuilding and repair sector, specifically focusing on specialized nuclear maintenance for naval vessels. Spending in this niche area is driven by defense needs and the lifecycle management of complex, high-value assets.
Small Business Impact
This contract does not appear to involve small businesses, as it was awarded directly to Electric Boat Corporation, a large defense contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight would be beneficial to ensure the cost-plus-fixed-fee structure is managed effectively and that the contractor is performing efficiently to protect taxpayer interests.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Lack of detailed cost breakdown hinders value analysis.
- Potential for contractor inefficiencies due to fixed fee.
Tags
ship-building-and-repairing, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to ELECTRIC BOAT CORPORATION. NUCLEAR REGIONAL MAINTENANCE DEPARTMENT
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 $23.6 million.
What is the period of performance?
Start: 2012-08-06. End: 2013-04-27.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, critical national security needs, or the unavailability of other qualified sources. For specialized nuclear maintenance, it's plausible that Electric Boat Corporation possesses unique expertise or facilities. However, a thorough review would confirm if any competitive avenues were explored or deemed infeasible, ensuring the government obtained the best value under the circumstances.
How are cost overruns managed under the Cost Plus Fixed Fee (CPFF) structure for this contract?
Under a CPFF contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. To manage overruns, the government relies on robust oversight, detailed cost tracking, and performance metrics. The fixed fee provides some incentive for efficiency, but the government must actively monitor costs to prevent excessive spending and ensure the contractor operates within reasonable parameters.
What performance metrics are in place to ensure the effectiveness of the nuclear maintenance services provided?
Effectiveness is typically measured through adherence to schedules, quality of work, compliance with safety and regulatory standards, and successful completion of maintenance objectives. Specific metrics might include vessel availability rates post-maintenance, defect rates, and timely completion of critical tasks. The Department of the Navy would likely have established performance standards and inspection protocols to verify the contractor's effectiveness.
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: N0002412R4305
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: $23,646,156
Exercised Options: $23,646,156
Current Obligation: $23,646,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-06
Current End Date: 2013-04-27
Potential End Date: 2013-04-27 00:00:00
Last Modified: 2021-05-28
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