DoD awards $339M for Guided Missile Subsystems to Charles Stark Draper Laboratory, Inc

Contract Overview

Contract Amount: $33,904,961 ($33.9M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-11-15

End Date: 2011-05-14

Contract Duration: 3,102 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200303!00A030!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0012 !A!N! !N!P00001 !20021115!20041030!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000034138453!N!N!000000000000!1427!GUIDED MISSILE SUBSYSTEMS !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !541330!E! !3! ! !D! ! !99990909!B!D!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 $33.9 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200303!00A030!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0012 !A!N! !N!P00001 !20021115!20041030!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDL… Key points: 1. The contract is for engineering services related to guided missile subsystems. 2. The awardee, Charles Stark Draper Laboratory, Inc., is a sole entity for this specific contract. 3. The contract value is substantial at $339 million, indicating significant program investment. 4. The sector is Defense, specifically focused on strategic systems and missile technology.

Value Assessment

Rating: questionable

The contract value of $339 million for engineering services is high. Without comparable contracts for similar missile subsystems, it's difficult to definitively assess if this pricing is competitive. Further analysis of the cost-plus-fixed-fee structure is needed.

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 competition is absent.

Taxpayer Impact: The lack of competition for a $339 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

National security implications due to the strategic nature of missile subsystems. Potential impact on the defense industrial base and specialized engineering capabilities. Taxpayer funds are allocated to advanced defense technology development and sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type can incentivize cost overruns.
Long contract duration (over 9 years) increases risk of cost escalation.

Positive Signals

Award to a specialized, established contractor for critical defense systems.
Potential for high-quality engineering and development in a sensitive area.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on engineering services for strategic missile subsystems. Spending in this area is critical for national security, but often involves high costs due to specialized R&D and manufacturing requirements.

Small Business Impact

This contract was awarded to a large business, Charles Stark Draper Laboratory, Inc. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this large contract warrants close oversight to ensure cost control and effective performance. The Department of Defense and its contracting agencies should monitor expenditures and deliverables diligently.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration
Lack of transparency in pricing due to non-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200303!00A030!1700!XSP01 !STRATEGIC SYSTEMS PROGRAMS !N0003003C0012 !A!N! !N!P00001 !20021115!20041030!066587478!066587478!066587478!N!CHARLES STARK DRAPER LABORATOR!555 TECHNOLOGY SQUARE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000034138453!N!N!000000000000!1427!GUIDED MISSILE SUBSYSTEMS !S1 !SERVICES !2CNJ!UGM-96 TRIDENT !541330!E! !3! ! !D! ! !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 $33.9 million.

What is the period of performance?

Start: 2002-11-15. End: 2011-05-14.

What is the justification for the sole-source award of this critical missile subsystem contract?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent national security needs that cannot be met by other sources. For this contract, the specific reasons would need to be documented by the Department of Defense, likely citing the specialized nature of the work and the contractor's unique expertise in guided missile subsystems.

How does the cost-plus-fixed-fee structure impact the risk of cost overruns for this $339 million contract?

A cost-plus-fixed-fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts. This structure can increase the risk of cost overruns if not managed tightly, as the government bears the risk of increased costs while the contractor's profit remains constant.

What is the long-term strategic value of investing $339 million in these specific guided missile subsystems?

The long-term strategic value lies in maintaining and advancing critical national defense capabilities. These subsystems are likely integral to strategic deterrence and force projection. Continued investment ensures the reliability and effectiveness of these vital assets, supporting national security objectives and potentially influencing geopolitical stability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 555 TECHNOLOGY SQUARE, CAMBRIDGE, MA, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline