Draper Laboratory awarded $29.5M R&D contract by DoD, highlighting sole-source procurement in defense research

Contract Overview

Contract Amount: $29,536,072 ($29.5M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-10-30

End Date: 2011-06-02

Contract Duration: 2,772 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. Significant duration of over 7 years suggests a long-term research and development investment. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for value assessment. 5. The contractor, THE CHARLES STARK DRAPER LABORATORY, INC., has a substantial history in defense contracting. 6. Geographic concentration in Massachusetts may indicate a localized talent pool or existing infrastructure advantage.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost control, but the cost-reimbursement nature requires rigorous oversight to ensure efficiency. Comparing to similar sole-source R&D contracts in the defense sector would be necessary for a more precise value assessment. The total award amount of over $29.5 million over nearly 8 years suggests a significant investment, but the value-for-money depends heavily on the successful outcomes of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids were solicited. The rationale for sole-source procurement would need to be thoroughly documented and justified.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit multiple offers. This can result in paying a premium for the goods or services.

Public Impact

The Department of Defense benefits from advanced research and development in physical, engineering, and life sciences, potentially leading to enhanced national security capabilities. The contract supports specialized research activities, contributing to technological advancements within the defense sector. The primary beneficiary is the contractor, THE CHARLES STARK DRAPER LABORATORY, INC., through revenue generation and continued engagement in critical R&D. The geographic impact is concentrated in Massachusetts, supporting a high-skilled workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and efficiency.
Cost Plus Fixed Fee contract structure can incentivize higher spending if not managed tightly.
Long contract duration (over 7 years) increases the risk of scope creep or evolving requirements not aligning with initial cost estimates.
Lack of transparency inherent in sole-source R&D contracts makes independent value assessment difficult.

Positive Signals

Award to a specialized R&D firm like Draper Laboratory suggests access to unique expertise critical for defense innovation.
Long-term nature of the contract indicates a strategic investment in potentially groundbreaking technologies.
Fixed fee component provides a ceiling on contractor profit, offering some level of cost predictability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, often characterized by high upfront investment, long development cycles, and significant technological risk. The market for defense R&D is often specialized, with a limited number of firms possessing the requisite expertise and security clearances. Comparable spending benchmarks would involve analyzing other sole-source R&D contracts awarded by the DoD or other federal agencies for similar scientific disciplines.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of specialized R&D often involves large, established prime contractors. Further investigation into subcontracting plans would be needed to assess any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures would be tied to the contract's milestones and deliverables. Transparency is limited due to the sole-source nature and the proprietary aspects of R&D, but contract award data is publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Sole-Source Defense Procurements
Engineering and Physical Sciences Research

Risk Flags

Sole-source procurement lacks competitive pricing.
Cost-reimbursement contract type requires diligent oversight to prevent cost overruns.
Long contract duration increases risk exposure.
Limited public data on R&D specifics hinders independent value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to THE CHARLES STARK DRAPER LABORATORY, INC.. See the official description on USAspending.

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 $29.5 million.

What is the period of performance?

Start: 2003-10-30. End: 2011-06-02.

What is the specific nature of the R&D being conducted under this contract, and what are the expected technological advancements?

The contract details are limited in public disclosures, but THE CHARLES STARK DRAPER LABORATORY, INC. is known for its work in areas such as inertial navigation systems, guidance, control, and avionics, particularly for strategic systems. This contract likely supports the development or enhancement of technologies within these domains. Expected advancements could include improved precision, reduced size/weight/power, or novel capabilities for defense platforms. Without access to the SOW (Statement of Work) and technical reports, the precise nature and expected outcomes remain proprietary to the Department of Defense and the contractor.

How does the $29.5 million award amount compare to similar sole-source R&D contracts for defense applications?

Comparing this $29.5 million award requires identifying sole-source R&D contracts with similar scope, duration, and technological focus within the defense sector. Draper Laboratory itself has received numerous sole-source contracts for R&D. For instance, contracts for developing advanced guidance systems or specialized sensors can range from tens to hundreds of millions of dollars over several years. The 'fair' value assessment hinges on whether this amount represents a reasonable investment for the anticipated technological gains, considering the contractor's expertise and the inherent risks in R&D. A direct comparison would necessitate access to detailed cost and performance data from comparable contracts.

What are the key performance indicators (KPIs) and milestones associated with this contract, and how is performance being measured?

Specific KPIs and milestones for this contract are not publicly detailed. However, for a Cost Plus Fixed Fee R&D contract, performance is typically measured against the achievement of defined technical objectives, delivery of prototypes or reports, adherence to project schedules, and effective management of costs within the fixed fee structure. The Defense Contract Management Agency (DCMA) would likely monitor progress through regular reviews, technical assessments, and financial audits. The success of the R&D effort itself, leading to deployable technology or critical knowledge, serves as the ultimate performance benchmark.

What is the historical spending pattern of the Department of Defense with THE CHARLES STARK DRAPER LABORATORY, INC. for R&D services?

The Department of Defense has a long and substantial history of awarding contracts to THE CHARLES STARK DRAPER LABORATORY, INC., particularly for research and development. Publicly available data indicates billions of dollars in contracts awarded over decades, spanning various defense programs and technological areas. This includes significant investments in areas like missile defense, guidance systems, and advanced electronics. The $29.5 million award is consistent with the scale of previous R&D engagements, reflecting Draper Laboratory's established role as a key R&D partner for the DoD.

Given the sole-source nature, what mechanisms are in place to ensure the contractor remains accountable for delivering value and managing costs effectively?

Accountability in sole-source contracts relies heavily on robust government oversight and clearly defined contract terms. For this Cost Plus Fixed Fee contract, the government (likely DCMA) would closely monitor expenditures to ensure they align with the approved budget and the fixed fee. Milestones and deliverables serve as critical checkpoints for performance assessment. The contract likely includes clauses for termination for default or convenience, providing leverage. Furthermore, the fixed fee itself is negotiated, and while costs are reimbursed, the profit margin is capped, incentivizing efficient operations within that constraint.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

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