DoD Awards $821M Contract for Submarine Construction to Electric Boat Corporation
Contract Overview
Contract Amount: $82,116,175 ($82.1M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 1999-10-14
End Date: 2013-09-23
Contract Duration: 5,093 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: 200012!1700!000211!BS789 !SUPERVISOR SHIPBUILDING CONVERSI!N0002491C2902 !A!*!A01076 !19991014!19981203!963737366!963737366!001381284!N!96169!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW LONDON !CONN !0001!+000000080560!N!N!000000000000!1904!SUBMARINES !A3 !SHIPS !2SDN!SUBMARINE NUCLEAR-SSN !3731!3!*!*!B!B!A!*!A !U!L!2!002!N!3A!A!N!C!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!A!N!*!*!*!*!*!
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340
Plain-Language Summary
Department of Defense obligated $82.1 million to ELECTRIC BOAT CORPORATION for work described as: 200012!1700!000211!BS789 !SUPERVISOR SHIPBUILDING CONVERSI!N0002491C2902 !A!*!A01076 !19991014!19981203!963737366!963737366!001381284!N!96169!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW… Key points: 1. The contract is for submarine construction, a critical component of naval defense. 2. Electric Boat Corporation is a major player in the shipbuilding industry, suggesting significant competition in the sector. 3. The fixed-price incentive contract type carries some risk for the government if costs escalate. 4. This spending falls within the broader Defense sector, specifically naval shipbuilding.
Value Assessment
Rating: good
The total award amount is $821,161,750. Without specific per-unit cost data or benchmarks for similar submarine construction contracts, a precise value assessment is difficult. However, the duration of the contract (over 13 years) suggests a phased approach to cost management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is generally expected to lead to more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense capabilities.
Public Impact
Supports national security by funding the construction of advanced naval vessels. Contributes to the economic activity in Connecticut, where Electric Boat Corporation is located. Ensures the readiness of the U.S. Navy's submarine fleet for strategic missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Fixed Price Incentive contract type.
- Long contract duration may introduce unforeseen economic or technological risks.
- Dependence on a single contractor for critical submarine production.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Supports a key defense capability for national security.
- Long-term commitment provides stability for shipbuilding workforce.
Sector Analysis
This contract falls within the shipbuilding and repair sector, a critical part of the defense industrial base. Spending benchmarks for submarine construction are highly specialized and vary significantly based on vessel type and technological complexity.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large-scale defense contracts of this nature often involve prime contractors who may then subcontract to smaller businesses.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. The fixed-price incentive structure implies performance monitoring to manage costs and schedule.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Overruns
- Schedule Delays
- Technological Obsolescence
- Supply Chain Disruptions
Tags
department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.1 million to ELECTRIC BOAT CORPORATION. 200012!1700!000211!BS789 !SUPERVISOR SHIPBUILDING CONVERSI!N0002491C2902 !A!*!A01076 !19991014!19981203!963737366!963737366!001381284!N!96169!ELECTRIC BOAT CORPORATION !75 EASTERN POINT RD !GROTON !CT!06340!34180!011!09!GROTON !NEW LONDON !CONN !0001!+000000080560!N!N!000000000000!1904!SUBMARINES !A3 !SHIPS !2SDN!SUBMARINE NUCLEAR-SSN !3731!3!*!*!B!B!A!*!A !U!L!
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 $82.1 million.
What is the period of performance?
Start: 1999-10-14. End: 2013-09-23.
What is the breakdown of costs for labor, materials, and overhead within this contract?
A detailed cost breakdown is not provided in the available data. Understanding the allocation of funds across labor, materials, and overhead would offer deeper insight into the efficiency of the contract and potential areas for cost savings or scrutiny in future procurements.
How does the per-unit cost of these submarines compare to similar vessels procured by other nations or in previous decades?
Without specific per-unit cost data and comparable contract details, benchmarking is challenging. Submarine construction is highly complex and technologically advanced, making direct comparisons difficult. Factors like technological upgrades, inflation, and specific mission requirements heavily influence costs over time and across different programs.
What are the key performance metrics and milestones associated with this contract, and how is Electric Boat Corporation's performance being tracked?
The provided data does not detail specific performance metrics or tracking mechanisms. However, typical oversight for such contracts involves regular progress reviews, adherence to delivery schedules, and quality control inspections to ensure the submarines meet stringent naval specifications.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
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
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-14
Current End Date: 2013-09-23
Potential End Date: 2013-09-23 00:00:00
Last Modified: 2014-07-14
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