DoD's $14.4M contract for UGM-96 Trident maintenance awarded to Charles Stark Draper Laboratory

Contract Overview

Contract Amount: $14,383,458 ($14.4M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 1999-11-19

End Date: 2003-02-14

Contract Duration: 1,183 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200006!1700!00A129!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003000C0002 !A!*!* !19991119!20021231!066587478!066587478!066587478!N!51993!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !0001!+000005391311!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !8711!3!*!*!*!B!A!*!D !N!U!1!001!N!1A!Z!Y!Z!* !* !N!Z!*!*!*!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200006!1700!00A129!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003000C0002 !A!*!* !19991119!20021231!066587478!066587478!066587478!N!51993!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MID… Key points: 1. Contract awarded to a single, established provider for specialized equipment maintenance. 2. High cost suggests complex or critical system support. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. Sector focus on defense systems indicates a critical national security component.

Value Assessment

Rating: questionable

The contract value of $14.4M for 1183 days (approx. $12,158/day) appears high. Benchmarking against similar specialized defense equipment maintenance contracts is difficult without more data, but the lack of competition suggests potential for inflated pricing.

Cost Per Unit: $12,158

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for the maintenance services, as competitive pressures to reduce costs were absent.

Public Impact

Taxpayers fund critical defense system maintenance, ensuring operational readiness. The award impacts a specialized sector within the defense industrial base. Lack of transparency in sole-source awards can erode public trust. Dependence on a single contractor for essential services poses a long-term risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Lack of competition
Potential for cost overruns

Positive Signals

Ensures continuity of critical defense system maintenance
Leverages specialized expertise of a known contractor

Sector Analysis

This contract falls within the Defense sector, specifically supporting strategic systems. Spending in this area is typically high due to the complexity and criticality of the equipment involved. Benchmarks are difficult without specific system knowledge, but maintenance of such systems often requires specialized, high-cost expertise.

Small Business Impact

This contract was awarded to a large, established corporation, Charles Stark Draper Laboratory, Inc. There is no indication of small business participation in this specific award, which is common for highly specialized defense contracts.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. While specialized expertise may justify it, robust justification and oversight are crucial to ensure fair pricing and prevent potential waste, fraud, or abuse.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and price discovery.
High per-unit cost raises concerns about value for money.
Lack of transparency in justification for sole-source award.
Potential for contractor lock-in and future cost increases.
Dependence on a single entity for critical defense system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200006!1700!00A129!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003000C0002 !A!*!* !19991119!20021231!066587478!066587478!066587478!N!51993!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !0001!+000005391311!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !8711!3!*!*!*!B!A!*!D !N!U!

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 1999-11-19. End: 2003-02-14.

What is the justification for awarding this contract on a sole-source basis, and has an alternatives analysis been conducted?

The justification for a sole-source award typically centers on the unique capabilities, proprietary technology, or essential nature of the contractor's services. An alternatives analysis would assess whether other sources could meet the government's needs. Without this documentation, it's difficult to ascertain if competitive options were truly unavailable or if the government simply opted for the easiest path.

How does the per-unit cost of this maintenance contract compare to industry benchmarks for similar complex defense systems?

Benchmarking the per-unit cost of $12,158 for maintaining the UGM-96 Trident system is challenging without access to proprietary cost data or specific industry comparisons. However, given the specialized nature of strategic weapon systems and the sole-source award, it is plausible that this cost is at the higher end of the spectrum. Further analysis would require detailed cost breakdowns and comparisons with analogous contracts.

What is the long-term strategy for ensuring cost-effectiveness and competition for the maintenance of critical defense assets like the UGM-96 Trident?

The long-term strategy should involve periodic re-evaluation of the sole-source justification, exploring opportunities for technology insertion or system upgrades that might open competition, and fostering a competitive environment where possible. Agencies should actively seek to break down complex requirements into smaller, more competitive packages or encourage new entrants into specialized maintenance areas to drive down costs and spur innovation.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 555 TECHNOLOGY SQUARE, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline