Navy Awards $254M Contract to Electric Boat Corp. for Submarine Services

Contract Overview

Contract Amount: $25,430,373 ($25.4M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 1999-10-29

End Date: 2008-09-30

Contract Duration: 3,259 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to ELECTRIC BOAT CORPORATION for work described as: Key points: 1. The contract value is substantial at $254.3 million. 2. Electric Boat Corporation is a significant player in the defense sector. 3. The contract was not competed, raising potential concerns about price discovery. 4. The spending is within the defense sector, specifically for submarine services.

Value Assessment

Rating: questionable

The contract was awarded in 1999 and completed in 2008. Without knowing the specific services rendered and comparing them to similar contracts from that era, it's difficult to definitively assess pricing. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was sole-sourced, meaning it was not competed among multiple vendors. This method limits price discovery and can lead to higher costs for taxpayers as there is no competitive pressure to offer the best price.

Taxpayer Impact: The lack of competition for this significant contract likely resulted in higher costs for taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may have paid more due to the sole-source nature of the award. The long duration of the contract (over 9 years) suggests a significant ongoing need for these services. The Department of the Navy relies on Electric Boat Corporation for critical submarine services.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Sole-source award
Lack of reported price benchmarks
Long contract duration

Positive Signals

Awarded to a known, established contractor
Services likely critical to national defense

Sector Analysis

This contract falls within the defense industrial base, specifically supporting submarine maintenance and operations. Spending in this sector is often characterized by long-term contracts and specialized capabilities, with significant taxpayer investment.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. The sole-source nature of the award makes it less likely for small businesses to have had direct opportunities.

Oversight & Accountability

The data indicates the contract was awarded by the Department of the Navy. Oversight would typically involve contract management and performance monitoring by the Navy to ensure services were delivered as specified and within the agreed-upon terms.

Related Government Programs

Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Contract duration spans nearly a decade.
Lack of detailed service description.
No reported small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to ELECTRIC BOAT CORPORATION. See the official description on USAspending.

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 $25.4 million.

What is the period of performance?

Start: 1999-10-29. End: 2008-09-30.

What specific submarine services were provided under this contract, and how do they align with the Navy's operational needs?

The provided data does not specify the exact nature of the submarine services. However, given Electric Boat Corporation's role as a primary builder and servicer of US Navy submarines, these services likely encompassed maintenance, repair, modernization, or logistical support critical to the operational readiness of the submarine fleet.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For Electric Boat Corporation, this could be due to unique technical expertise, proprietary technology, or the specialized facilities required for complex submarine maintenance and construction, making competition impractical or impossible.

How did the final cost of this contract compare to initial estimates or projected costs, considering it was not competed?

Without access to the contract's detailed financial history and the initial cost estimates, it's impossible to determine the final cost's comparison. However, the absence of competition inherently removes a key mechanism for cost control, suggesting a higher likelihood of costs exceeding those achievable in a competitive bidding process.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 75 EASTERN POINT RD, GROTON, CT, 02

Business Categories: Category Business, Not Designated a Small Business

Timeline