DoD Awards $41.6M Bridge Contract to Electric Boat Corp for Ship Building Support
Contract Overview
Contract Amount: $41,616,738 ($41.6M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2011-11-19
End Date: 2012-12-15
Contract Duration: 392 days
Daily Burn Rate: $106.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NEMMI 12 MONTH BRIDGE CONTRACT SUPPORT
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340
Plain-Language Summary
Department of Defense obligated $41.6 million to ELECTRIC BOAT CORPORATION for work described as: NEMMI 12 MONTH BRIDGE CONTRACT SUPPORT Key points: 1. Significant contract value of $41.6 million highlights substantial investment. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Bridge contract nature suggests an interim solution, potentially leading to future competition. 4. Focus on ship building and repair indicates a critical defense sector need.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money 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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $41.6 million contract means taxpayers may not be receiving the best possible price.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The bridge contract nature could lead to follow-on contracts, impacting long-term spending. Essential support for naval shipbuilding is maintained, ensuring fleet readiness. The specific sector of shipbuilding and repair is vital for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Bridge contract status
Positive Signals
- Ensures continuity of critical shipbuilding support
- Supports a key defense industrial base
Sector Analysis
This contract falls within the Ship Building and Repairing sector, a critical component of the defense industrial base. Spending in this area is often substantial due to the complexity and strategic importance of naval assets.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The sole-source nature of this bridge contract warrants close oversight to ensure fair pricing and prevent potential cost escalations. The Department of the Navy's management of this award will be crucial.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Bridge contract
- Lack of transparency on justification for sole-sourcing
- Potential for cost overruns
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 $41.6 million to ELECTRIC BOAT CORPORATION. NEMMI 12 MONTH BRIDGE CONTRACT SUPPORT
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 $41.6 million.
What is the period of performance?
Start: 2011-11-19. End: 2012-12-15.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves urgent needs, unique capabilities, or the unavailability of other sources. For a bridge contract, it often signifies an immediate requirement to maintain ongoing operations while a more comprehensive, competitive procurement is developed. Understanding the specific circumstances that precluded competition is key to assessing the necessity of this approach.
What are the potential risks associated with a Cost Plus Fixed Fee contract for shipbuilding support?
Cost Plus Fixed Fee (CPFF) contracts carry risks of cost overruns if the fixed fee is not adequately justified or if the contractor's cost control is weak. The government bears the risk of increased costs, while the contractor is incentivized to complete the work within the agreed-upon scope for their fixed fee. Effective government oversight is critical to manage these risks and ensure value.
How does this bridge contract impact the long-term strategy for naval shipbuilding support?
Bridge contracts are intended as short-term solutions to prevent gaps in essential services. This contract's duration (392 days) suggests it's meant to cover a period while a longer-term strategy or competitive solicitation is finalized. Its existence implies that the current support arrangements are either expiring or insufficient, and it buys time for the Navy to establish a more sustainable and potentially competitive contracting approach.
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: N0002411R4318
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: $41,616,738
Exercised Options: $41,616,738
Current Obligation: $41,616,738
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: YES
Timeline
Start Date: 2011-11-19
Current End Date: 2012-12-15
Potential End Date: 2012-12-15 00:00:00
Last Modified: 2013-03-04
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