Navy awards $30.7M to Electric Boat for USS Providence (SSN 719) ship maintenance
Contract Overview
Contract Amount: $30,658,162 ($30.7M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2015-09-09
Contract Duration: 712 days
Daily Burn Rate: $43.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Ship Building and Repairing
Official Description: USS PROVIDENCE (SSN 719) DCMAV EXECUTION
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $30.7 million to ELECTRIC BOAT CORPORATION for work described as: USS PROVIDENCE (SSN 719) DCMAV EXECUTION Key points: 1. Significant contract value for specialized naval maintenance. 2. Sole-source award to Electric Boat, a major defense contractor. 3. Potential risk associated with limited competition for critical assets. 4. Spending falls within the Ship Building and Repairing sector.
Value Assessment
Rating: fair
The contract value of $30.7M for ship maintenance is substantial. Benchmarking against similar complex naval vessel repairs is difficult without more specific scope details, but the sole-source nature raises questions about price reasonableness.
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 limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: Taxpayer funds are used for this sole-source contract, highlighting the importance of robust oversight to ensure fair pricing and value for money.
Public Impact
Ensures operational readiness of a key naval asset. Supports jobs within the defense shipbuilding and repair industry. Highlights reliance on a single contractor for specialized maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Maintains critical naval infrastructure
- Supports established defense contractor
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is characterized by high costs, long lead times, and specialized expertise. Spending in this sector is often driven by national security needs and can involve significant sole-source procurements.
Small Business Impact
The awardee, Electric Boat Corporation, is a large business. There is no indication of small business participation in this specific contract, which is common for highly specialized and large-scale defense procurements.
Oversight & Accountability
The sole-source nature of this award necessitates strong oversight from the Department of the Navy and DCMA to ensure the contractor delivers on time and within budget, and that the pricing is justified.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to lack of competitive pressure.
- Dependency on a single contractor for critical maintenance.
- Limited transparency on price justification without competition.
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 $30.7 million to ELECTRIC BOAT CORPORATION. USS PROVIDENCE (SSN 719) DCMAV EXECUTION
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 $30.7 million.
What is the period of performance?
Start: 2013-09-27. End: 2015-09-09.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The price is usually determined through negotiation, cost analysis, and comparison to historical data or industry benchmarks, though the absence of competition inherently limits the government's leverage in achieving the lowest possible price.
What are the risks associated with relying on a single contractor for critical submarine maintenance, particularly regarding long-term availability and cost escalation?
Relying on a single contractor for critical maintenance creates a risk of dependency, potentially leading to service disruptions if the contractor faces financial or operational issues. It also reduces bargaining power, potentially allowing for price increases over time. Furthermore, it can stifle innovation if alternative solutions or more cost-effective methods are not explored due to the lack of competitive pressure.
How does this contract contribute to the overall readiness and operational effectiveness of the U.S. Navy's submarine fleet?
This contract is crucial for maintaining the operational readiness and effectiveness of the USS Providence (SSN 719). Regular and specialized maintenance ensures the submarine's systems are functioning optimally, extending its service life and guaranteeing its capability to perform its strategic missions. Without such maintenance, the vessel's performance would degrade, impacting naval power projection and national security.
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: N0002413R4301
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $30,658,162
Exercised Options: $30,658,162
Current Obligation: $30,658,162
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-27
Current End Date: 2015-09-09
Potential End Date: 2015-09-09 00:00:00
Last Modified: 2016-05-05
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