DoD's $102.6M R&D Contract with Draper Lab: A Sole-Source Analysis
Contract Overview
Contract Amount: $102,621,072 ($102.6M)
Contractor: THE Charles Stark Draper Laboratory, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-02
End Date: 2006-11-15
Contract Duration: 1,079 days
Daily Burn Rate: $95.1K/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
Plain-Language Summary
Department of Defense obligated $102.6 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: Key points: 1. Significant investment in R&D services by the Department of Defense. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. Contract duration of nearly 3 years indicates a substantial project scope. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 'NOT COMPETED' status indicates a sole-source award, likely due to specialized capabilities or prior relationships. This limits price discovery and may result in higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to a less efficient allocation of resources.
Public Impact
Investment in advanced research and development critical for national security. Potential for technological advancements stemming from the contract's R&D focus. Lack of transparency in the procurement process due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price scrutiny.
- CPFF contract type can incentivize cost increases.
- Lack of clear performance metrics or benchmarks for R&D outcomes.
Positive Signals
- Supports critical R&D in physical, engineering, and life sciences.
- Long-term engagement suggests a strategic investment.
- Draper Lab is a recognized leader in its field.
Sector Analysis
This contract falls under Research and Development (NAICS 541710), a sector often characterized by innovation and specialized expertise. Spending benchmarks vary widely based on the specific R&D focus, but large sole-source contracts warrant scrutiny for cost-effectiveness.
Small Business Impact
The awardee, THE CHARLES STARK DRAPER LABORATORY, INC., is a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Defense Contract Management Agency (DCMA) to ensure cost control and adherence to contract terms. Transparency regarding the justification for the sole-source award is crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- CPFF contract type can lead to cost overruns.
- Lack of transparency in procurement justification.
- Potential for higher costs due to lack of competitive bidding.
- Difficulty in benchmarking pricing and value.
Tags
research-and-development-in-the-physical, department-of-defense, ma, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.6 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 $102.6 million.
What is the period of performance?
Start: 2003-12-02. End: 2006-11-15.
What specific R&D advancements were achieved under this contract, and how do they align with DoD's strategic goals?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. Specific advancements would require access to project reports and deliverables. The alignment with DoD's strategic goals would depend on the nature of the R&D and its contribution to defense capabilities or technological superiority. Without detailed project outcomes, assessing the true value is challenging.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary data, or urgent needs. The justification for this specific contract would need to be documented by the DoD. Without this documentation, it's impossible to assess if competitive alternatives were adequately explored or if the sole-source decision was truly warranted.
How effectively was the Cost Plus Fixed Fee (CPFF) structure managed to control costs and ensure value for taxpayer money?
The CPFF structure allows for cost reimbursement plus a fixed fee, which can incentivize contractors to manage costs efficiently. However, it also carries the risk of cost overruns if the scope is not well-defined or if oversight is lacking. Effective management would involve rigorous monitoring of expenditures, regular audits, and clear communication to ensure the fixed fee remains appropriate for the work performed and that overall costs stay within reasonable bounds.
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
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: YES
Timeline
Start Date: 2003-12-02
Current End Date: 2006-11-15
Potential End Date: 2006-11-15 00:00:00
Last Modified: 2011-05-27
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