DoD's $13.6M contract for Trident missile repair awarded to Draper Lab without competition

Contract Overview

Contract Amount: $13,638,614 ($13.6M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-10-24

End Date: 2007-03-31

Contract Duration: 1,619 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200307!00A150!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0011 !A!N! !N! !20021024!20050130!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000011530320!N!N!000000000000!J014!MAINT & REPAIR OF EQ/GUIDED MISSILES !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !541710!E! !3! ! ! ! ! !99990909!B!F!N!A! !D!N!U!1!001!N!1A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200307!00A150!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0011 !A!N! !N! !20021024!20050130!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDL… Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential savings. 2. The contract's cost-plus-fixed-fee structure may incentivize higher spending by the contractor. 3. Research and Development NAICS code suggests a focus on innovation, but the service is repair. 4. Long contract duration of over 3 years could indicate complex or ongoing maintenance needs. 5. The contractor, Charles Stark Draper Laboratory, Inc., has a history with defense systems. 6. Awarded by the Department of Defense, highlighting critical national security implications.

Value Assessment

Rating: questionable

The contract value of $13.6 million for maintenance and repair of guided missiles appears substantial, especially given the sole-source award. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, can lead to cost overruns if not closely monitored, potentially diminishing value for money. Further analysis would be needed to compare the contractor's historical performance and pricing on similar tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source can provide the required services, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means that taxpayers did not benefit from the price reductions typically achieved through a bidding process, and it limits the government's ability to explore alternative solutions or providers.

Taxpayer Impact: Sole-source awards mean taxpayers may be paying a premium, as the government could not leverage competition to secure the best possible price. This also limits transparency in pricing.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Strategic Systems Programs, ensuring the operational readiness of the UGM-96 Trident missile system. Services delivered include maintenance and repair of critical guided missile equipment, essential for national defense. The geographic impact is primarily within the United States, supporting defense infrastructure and personnel. Workforce implications include specialized technical roles within Charles Stark Draper Laboratory, Inc., and potentially within the DoD for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize increased spending if not rigorously managed.
The contract is for repair services under an R&D NAICS code, which may indicate a mismatch or require clarification.
Long contract duration could mask inefficiencies or scope creep if not actively managed.

Positive Signals

Award to a known entity (Charles Stark Draper Laboratory) suggests reliance on established expertise for critical systems.
The contract supports a vital national security asset (Trident missile system).
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While the code suggests R&D, the contract's description is 'MAINT & REPAIR OF EQ/GUIDED MISSILES.' This highlights a common occurrence where maintenance of complex defense systems, especially those involving advanced technology, is categorized under R&D due to the specialized knowledge and engineering support required. Comparable spending in this sub-sector for defense maintenance and sustainment can be in the billions annually across various branches.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'N' for 'SB' (Small Business) in the data. Furthermore, the 'SS' (Small Business Set-Aside) field is also 'N'. This suggests that the primary contractor is not a small business, and there is no explicit requirement for subcontracting to small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific award, as it was a sole-source contract awarded to a large, established entity.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection agencies, such as the Defense Contract Management Agency (DCMA), which is listed as the 'SA' (Servicing Agency). Accountability measures would be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, requiring the contractor to justify costs and meet performance milestones. Transparency is limited due to the sole-source nature, but contract modifications, performance reports, and payment data would typically be subject to internal DoD review and potentially Inspector General oversight.

Related Government Programs

Strategic Systems Programs (SSP)
Trident II (D5) Submarine Ballistic Missile
Ballistic Missile Defense Systems
Naval Weapons Systems
Defense Research and Development Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200307!00A150!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0011 !A!N! !N! !20021024!20050130!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000011530320!N!N!000000000000!J014!MAINT & REPAIR OF EQ/GUIDED MISSILES !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !541710!E! !3! ! ! ! ! !99990909!B

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 $13.6 million.

What is the period of performance?

Start: 2002-10-24. End: 2007-03-31.

What is the historical spending pattern for maintenance and repair of the UGM-96 Trident missile system by the Department of Defense?

Analyzing historical spending for the UGM-96 Trident missile system's maintenance and repair requires access to detailed procurement databases beyond this single contract. However, the Strategic Systems Programs (SSP) within the Department of Defense is responsible for the Navy's ballistic missile submarines and their associated weapons systems. This includes the Trident II (D5) missile. Given the strategic importance and long service life of these systems, annual spending on their sustainment, including maintenance, repair, and upgrades, typically runs into hundreds of millions, if not billions, of dollars across the entire program lifecycle. This specific $13.6 million contract represents a portion of that larger sustainment effort, awarded over a period of approximately 3.5 years.

How does the cost-plus-fixed-fee (CPFF) structure typically impact contractor performance and government oversight compared to other contract types?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used for research, development, or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key objective. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work but provides less direct incentive for cost control compared to fixed-price contracts. Consequently, government oversight must be particularly rigorous, focusing on auditing costs, monitoring progress, and ensuring that the contractor is performing efficiently and effectively. Without strong oversight, CPFF contracts can lead to cost overruns, as the contractor is guaranteed their fee regardless of the final cost. This contrasts with fixed-price contracts, where the contractor bears more risk for cost overruns but has a stronger incentive to minimize costs.

What specific technical expertise does Charles Stark Draper Laboratory, Inc. possess that makes them a sole-source provider for this contract?

Charles Stark Draper Laboratory, Inc. (CSDL) is a non-profit research and development organization with a long history of supporting critical U.S. defense programs, particularly in guidance, navigation, and control (GNC) systems for strategic weapons. They have been instrumental in the development and sustainment of missile systems, including the Trident program, for decades. Their expertise likely encompasses highly specialized knowledge of the UGM-96 Trident's internal components, guidance systems, and unique maintenance requirements that are not readily available from other sources. This deep institutional knowledge, proprietary data, and established relationship with the program make them a unique and potentially sole-source provider for certain maintenance and repair tasks essential for the operational readiness of these strategic assets.

What are the potential risks associated with awarding a sole-source contract for critical defense equipment maintenance?

Awarding a sole-source contract for critical defense equipment maintenance carries several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. Secondly, it can reduce the incentive for the contractor to innovate or improve efficiency, as they face less pressure from potential competitors. Thirdly, it creates a dependency on a single provider, which can be problematic if that provider experiences financial difficulties, undergoes restructuring, or faces performance issues. Finally, it limits the government's ability to explore alternative technologies or approaches that might be offered by other potential vendors. For critical systems like the Trident missile, these risks are amplified due to national security implications.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code apply to a contract described as 'MAINT & REPAIR OF EQ/GUIDED MISSILES'?

The application of the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) code to a contract primarily for 'MAINT & REPAIR OF EQ/GUIDED MISSILES' often occurs in the defense sector due to the highly specialized and technical nature of maintaining advanced weapon systems. While the core activity is repair, the underlying complexity, the need for deep engineering knowledge, potential for minor modifications or diagnostics that border on R&D, and the contractor's role in providing technical support and engineering analysis can justify this classification. Defense contractors often possess unique expertise and proprietary data related to these systems, making their maintenance activities akin to ongoing engineering support rather than simple mechanical repair. This classification can also influence funding streams and reporting requirements within the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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