DoD awards $18.4M contract for navigation systems to The Charles Stark Draper Laboratory, Inc

Contract Overview

Contract Amount: $18,420,404 ($18.4M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2026-10-31

Contract Duration: 1,131 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACNS

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: ACNS Key points: 1. Contract awarded for critical navigation and guidance systems, essential for military operations. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration of 1131 days suggests a significant, ongoing need for these specialized systems. 4. The Charles Stark Draper Laboratory, Inc. has a history of work in this specialized sector. 5. Fixed-price contract type aims to control costs, but the lack of competition limits price discovery. 6. Awarded by the Department of the Navy, indicating a focus on maritime and naval applications.

Value Assessment

Rating: fair

The contract value of $18.4 million for navigation systems appears moderate given the specialized nature of the work. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty for the government, but the absence of competition means there's no direct benchmark to assess if the pricing is truly competitive. Further analysis of historical pricing for similar systems and the contractor's prior performance would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was considered. This typically occurs when a unique capability or proprietary technology is required, or when there are insufficient responsible sources. The lack of competition limits the government's ability to solicit and compare multiple offers, potentially leading to higher prices than if the contract had been competed. It also suggests that The Charles Stark Draper Laboratory, Inc. may hold a unique position in providing these specific navigation systems.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the lowest possible price, potentially increasing the overall cost to the government.

Public Impact

The Department of the Navy benefits from the acquisition of advanced navigation and guidance systems crucial for its operational readiness. Military personnel operating vessels and aircraft will utilize these systems, enhancing their mission capabilities and safety. The contract supports specialized manufacturing and engineering roles within The Charles Stark Draper Laboratory, Inc. Geographic impact is primarily centered around the contractor's facilities in Massachusetts, with potential downstream effects on its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Long contract duration could mask potential cost overruns if not closely monitored.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Award to a known entity with expertise in the field suggests a focus on capability.
Contract supports critical defense systems, aligning with national security objectives.

Sector Analysis

The contract falls within the "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" sector, a highly specialized area within the broader defense industrial base. This sector is characterized by high barriers to entry due to complex technological requirements, significant R&D investment, and stringent quality control standards. Spending in this area is driven by defense modernization efforts and the need for advanced avionics and navigation equipment. Comparable spending benchmarks are difficult to establish without more specific details on the system's capabilities, but contracts for similar specialized defense electronics can range from millions to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, the contractor is not identified as a small business. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus of this award is on the prime contractor's specialized capabilities, and the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, but day-to-day oversight focuses on performance and compliance with contract terms.

Related Government Programs

Navigation Systems Procurement
Defense Electronics Manufacturing
Aeronautical and Nautical Instrument Development
Department of Defense Research and Development
Naval Aviation Support Systems

Risk Flags

Sole-source award limits competition.
Lack of transparency in pricing due to sole-source nature.
Potential for higher costs without competitive bidding.
Reliance on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to THE CHARLES STARK DRAPER LABORATORY, INC.. ACNS

Who is the contractor on this award?

The obligated recipient is THE CHARLES STARK DRAPER LABORATORY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-10-31.

What is The Charles Stark Draper Laboratory, Inc.'s track record with the Department of Defense, particularly in navigation systems?

The Charles Stark Draper Laboratory, Inc. has a long-standing relationship with the Department of Defense, historically involved in advanced guidance, navigation, and control (GNC) systems. They are well-known for their work on inertial navigation systems, particularly for strategic weapons and space applications. Their involvement spans decades, contributing to numerous defense programs. While specific contract details for navigation systems are not provided here, their reputation and historical performance suggest a deep expertise in this domain. Further investigation into their past performance ratings and specific deliverables on similar contracts would provide a more granular understanding of their capabilities and reliability.

How does the $18.4 million contract value compare to similar navigation system procurements by the DoD?

Benchmarking the $18.4 million contract value for navigation systems is challenging without knowing the specific technical specifications and scope of work. However, for specialized, high-reliability navigation and guidance systems, this value is within a typical range for individual system procurements or development phases. Larger, more complex programs involving multiple platforms or extensive R&D could easily reach hundreds of millions or billions. Given this is a sole-source award for a definitive contract, it likely represents a specific need rather than a broad platform acquisition. Comparing it to other sole-source awards for similar niche technologies would be more relevant than comparing it to fully competed, large-scale system procurements.

What are the primary risks associated with this sole-source contract for navigation systems?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the government has less leverage to negotiate the best possible price. Another risk is the potential for contractor performance issues; while Draper Laboratory is a reputable firm, any sole-source award carries the inherent risk that the government is reliant on a single provider. If performance falters, finding an alternative quickly could be difficult. Finally, there's a risk of technological obsolescence if the systems procured are not future-proofed or if the contractor does not maintain a competitive edge in innovation throughout the contract's duration.

How effective is the fixed-price contract type in managing costs for these specialized navigation systems?

The fixed-price contract type is generally effective in managing costs for well-defined scopes of work, as it shifts the risk of cost overruns to the contractor. For specialized navigation systems where the requirements are clearly understood and unlikely to change significantly, this structure provides cost certainty for the government. However, the effectiveness is somewhat diminished by the sole-source nature of this award. While the price is fixed, the initial negotiation of that price might not reflect the most competitive market rate. The government relies on the contractor's cost proposal and negotiation skills rather than market forces to establish the fixed price.

What is the historical spending trend for navigation system manufacturing by the Department of the Navy?

Historical spending by the Department of the Navy on navigation system manufacturing has been substantial and consistent, reflecting the critical role these systems play in naval operations. While specific aggregate data for 'navigation system manufacturing' is not readily available in this format, the Navy consistently invests in advanced avionics, guidance, and control systems for its aircraft, ships, and submarines. Spending fluctuates based on modernization cycles, new platform development, and upgrades to existing fleets. The Navy's budget typically allocates significant portions to procurement and R&D for electronic warfare, sensors, and navigation technologies, indicating a sustained demand for such capabilities.

Are there any specific performance metrics or deliverables outlined in this contract that can be used to assess program effectiveness?

The provided data does not include specific performance metrics or detailed deliverables for this contract. Typically, definitive contracts of this nature would include a Statement of Work (SOW) outlining specific technical requirements, delivery schedules, and acceptance criteria. Performance effectiveness would be assessed against these criteria. Without access to the SOW and associated contract clauses, it is impossible to evaluate the program's effectiveness based on defined metrics. However, the contract type (Firm Fixed Price) implies that the contractor is responsible for meeting the defined requirements within the agreed price.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002422R5232

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQ, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,599,459

Exercised Options: $23,762,195

Current Obligation: $18,420,404

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,517,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline