DoD Awards $293M for VACL Material Parts to Electric Boat Corp

Contract Overview

Contract Amount: $293,047,244 ($293.0M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2030-03-20

Contract Duration: 2,000 days

Daily Burn Rate: $146.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: VACL MATERIAL PARTS

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $293.0 million to ELECTRIC BOAT CORPORATION for work described as: VACL MATERIAL PARTS Key points: 1. Significant contract value of $293 million. 2. Sole-source award to Electric Boat Corporation. 3. Long contract duration of approximately 2000 days. 4. Focus on shipbuilding and repair sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure.

Taxpayer Impact: The lack of competition for a large contract raises concerns about potential overspending of taxpayer funds.

Public Impact

Impacts national defense capabilities through shipbuilding. Potential for job creation within the defense industrial base. Ensures availability of critical materials for naval vessels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Supports critical defense infrastructure
Awarded to established defense contractor

Sector Analysis

This contract falls within the shipbuilding and repair sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high complexity and long-term commitments.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large sole-source awards often bypass small business participation.

Oversight & Accountability

Oversight will be crucial given the sole-source nature and cost-plus contract type to ensure funds are used efficiently and effectively for national security objectives.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost overruns (CPFF)
Long-term commitment without clear performance benchmarks
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $293.0 million to ELECTRIC BOAT CORPORATION. VACL MATERIAL PARTS

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 $293.0 million.

What is the period of performance?

Start: 2024-09-27. End: 2030-03-20.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of the Navy should provide documentation supporting this determination. To ensure fair pricing, robust cost analysis and negotiation by the contracting officer are essential, even without competition, to validate the reasonableness of the fixed fee and estimated costs.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this material?

A Cost Plus Fixed Fee (CPFF) contract carries risks of cost overruns if the contractor's actual costs exceed estimates, as the fixed fee remains constant. The government bears the risk of cost increases. Effective oversight is needed to monitor costs and ensure the contractor is incentivized to control expenses within the estimated range.

How does this award contribute to the overall effectiveness of naval shipbuilding and repair capabilities?

This award is likely critical for maintaining or enhancing the operational readiness of naval vessels by ensuring the supply of essential VACL material parts. Its effectiveness hinges on the timely delivery of high-quality components that meet stringent military specifications, directly supporting the Navy's shipbuilding and repair programs.

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: N0002421R4305

Offers Received: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $293,047,244

Exercised Options: $293,047,244

Current Obligation: $293,047,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002422G4304

IDV Type: BOA

Timeline