Navy awards $412M contract to Electric Boat for USS MONTPELIER (SSN 765) planning
Contract Overview
Contract Amount: $412,423,015 ($412.4M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2015-05-27
End Date: 2018-07-31
Contract Duration: 1,161 days
Daily Burn Rate: $355.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: USS MONTPELIER (SSN 765) PLANNING
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340
Plain-Language Summary
Department of Defense obligated $412.4 million to ELECTRIC BOAT CORPORATION for work described as: USS MONTPELIER (SSN 765) PLANNING Key points: 1. Contract awarded to Electric Boat Corporation, a major naval shipbuilding entity. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. This award falls under Ship Building and Repairing NAICS code 336611. 5. The contract duration is 1161 days, spanning from May 2015 to July 2018.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar submarine planning contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of submarine planning may limit the number of truly capable bidders.
Taxpayer Impact: Taxpayer funds are being used for the planning phase of a major naval asset. Competitive bidding aims to ensure value for money, but the cost-plus nature requires vigilant oversight.
Public Impact
Ensures the continued modernization and readiness of the U.S. Navy's submarine fleet. Supports jobs and economic activity within the shipbuilding and repair sector. Represents a significant investment in national defense capabilities. The planning phase is critical for the successful construction of future vessels.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost escalation.
- Long contract duration requires sustained oversight.
- Limited number of qualified bidders for specialized naval construction.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
- Managed by the Department of the Navy, a key defense agency.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, specifically for naval vessels. Spending in this sector is heavily influenced by defense budgets and geopolitical factors. Benchmarks are typically high due to the complexity and specialized nature of shipbuilding.
Small Business Impact
The data indicates the prime contractor is Electric Boat Corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Given the Cost Plus Fixed Fee structure, robust oversight is crucial to manage costs and ensure performance aligns with the fixed fee objectives.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for cost overruns.
- Limited number of specialized bidders.
- Complexity of submarine planning.
Tags
ship-building-and-repairing, department-of-defense, ct, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $412.4 million to ELECTRIC BOAT CORPORATION. USS MONTPELIER (SSN 765) PLANNING
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 $412.4 million.
What is the period of performance?
Start: 2015-05-27. End: 2018-07-31.
What was the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how was the fixed fee determined?
The provided data does not detail the cost breakdown or the methodology for determining the fixed fee. Understanding these elements is crucial for assessing the contractor's incentive to control costs and for evaluating the overall value proposition of the contract.
Were there any specific performance metrics or milestones tied to the fixed fee, and how were they measured?
The data does not specify performance metrics or milestones linked to the fixed fee. In Cost Plus Fixed Fee contracts, clearly defined milestones and performance indicators are essential for ensuring the contractor meets objectives efficiently and for justifying the fixed fee awarded.
How did the full and open competition process ensure the most cost-effective solution for the planning phase of the USS MONTPELIER?
While full and open competition is designed to foster cost-effectiveness, the specific nature of submarine planning may limit the pool of qualified bidders. The effectiveness of the competition in driving down costs would depend on the number and competitiveness of the bids received and the government's negotiation strategy.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002415R4300
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $417,279,309
Exercised Options: $417,279,309
Current Obligation: $412,423,015
Actual Outlays: $-143,948
Subaward Activity
Number of Subawards: 163
Total Subaward Amount: $11,493,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-05-27
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2024-07-19
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