DoD awards $112.8M for Trident II missile maintenance, highlighting R&D in physical sciences

Contract Overview

Contract Amount: $112,807,412 ($112.8M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-11-10

End Date: 2005-11-30

Contract Duration: 385 days

Daily Burn Rate: $293.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: Defense

Official Description: 200504!00A064!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0008 !A!N! !N! !P00001!20041110!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000096298007!N!N!000000000000!J014!MAINT & REPAIR OF EQ/GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541710!E! !3! ! !C! ! !20200930!B! ! !A! !D!N!V!1!001!N!1A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!A!N! ! ! ! !1700!N00030!0001! !

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $112.8 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200504!00A064!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0008 !A!N! !N! !P00001!20041110!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDD… Key points: 1. Contract focuses on essential maintenance and repair for a critical missile system. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Significant investment in R&D for advanced missile systems underscores national security priorities. 4. Contract duration of over a year suggests ongoing support needs for strategic assets. 5. Geographic concentration in Massachusetts for a key defense contractor. 6. The contract's value is substantial, reflecting the complexity and importance of the Trident II program.

Value Assessment

Rating: fair

The contract value of $112.8 million for maintenance and repair of the Trident II missile system is significant. Benchmarking this against similar contracts for strategic missile maintenance is challenging due to the unique nature of the Trident II program. However, the 'Cost Plus Incentive' pricing structure suggests an effort to control costs, but it also carries inherent risks if not managed tightly. Without more comparable data, assessing the precise value for money is difficult, but the scale indicates a critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one contractor, The Charles Stark Draper Laboratory, Inc., was deemed capable of performing the required maintenance and repair services for the Trident II missile system. This lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or spurred innovation from multiple vendors.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is achieved. This necessitates robust government oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Navy's strategic deterrence capabilities, ensuring the operational readiness of the Trident II missile system. Services delivered include essential maintenance and repair for guided missiles, crucial for national security. The geographic impact is concentrated in Massachusetts, where the contractor is located, supporting local specialized technical jobs. Workforce implications include the employment of highly skilled engineers and technicians specializing in advanced missile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Cost-plus contracts can incentivize spending if not carefully monitored.
Reliance on a single contractor for critical maintenance may pose supply chain or future availability risks.

Positive Signals

Contract supports a vital national security asset, ensuring strategic deterrence capabilities.
The contractor has a long-standing relationship and expertise with the Trident II system.
The 'Cost Plus Incentive' structure aims to align contractor and government interests in cost control.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, with a direct application to defense systems. The market for specialized maintenance of strategic missile systems is highly concentrated, with few entities possessing the requisite expertise and security clearances. The value of this contract is significant within the niche of strategic weapons system support.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of maintaining strategic missile systems, it is unlikely that small businesses would be primary contractors for such work. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are embedded within the 'Cost Plus Incentive' contract type, which links contractor profit to performance and cost targets. Transparency is generally limited for sole-source defense contracts of this nature, though reporting requirements would exist.

Related Government Programs

Trident II D5 Fleet Ballistic Missile Program
Strategic Systems Programs (SSP)
Naval Sea Systems Command (NAVSEA)
Department of Defense Research and Development Budgets

Risk Flags

Sole-source award
Cost-plus contract type
Critical defense system maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.8 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200504!00A064!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0008 !A!N! !N! !P00001!20041110!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000096298007!N!N!000000000000!J014!MAINT & REPAIR OF EQ/GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541710!E! !3! ! !C! ! !202

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 $112.8 million.

What is the period of performance?

Start: 2004-11-10. End: 2005-11-30.

What is the historical spending trend for maintenance and repair of the Trident II missile system with The Charles Stark Draper Laboratory, Inc.?

Analyzing historical spending requires access to prior contract awards for the same services. The provided data represents a single award from 2004-2005. To establish a trend, one would need to aggregate data for similar contracts over multiple fiscal years. This would involve searching contract databases for awards to The Charles Stark Draper Laboratory, Inc. or other entities performing similar work on the Trident II system. Without this historical data, it's impossible to determine if the $112.8 million award represents an increase, decrease, or stable level of spending for this specific maintenance function.

How does the 'Cost Plus Incentive' (CPIF) pricing structure compare to other contract types used for similar defense maintenance services?

Cost Plus Incentive Fee (CPIF) contracts are used when the government needs flexibility in scope and wants to incentivize contractor performance on cost and schedule. Unlike fixed-price contracts, CPIF allows for cost reimbursement plus a fee that is adjusted based on performance against targets. Compared to Cost Plus Fixed Fee (CPFF), CPIF offers greater potential for cost savings if targets are met or exceeded. However, it is more complex to administer than fixed-price contracts and requires robust government oversight to ensure targets are realistic and achievable. For highly technical and evolving systems like strategic missiles, CPIF can be appropriate when precise costs are difficult to estimate upfront.

What are the specific risks associated with a sole-source award for critical missile system maintenance?

The primary risk of a sole-source award for critical missile system maintenance is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Taxpayers may end up paying more than necessary because there is no market mechanism to drive efficiency. Additionally, reliance on a single provider can create vulnerabilities. If the contractor faces financial difficulties, operational issues, or decides to exit the market, the government could face significant disruptions in maintaining essential defense capabilities. This also reduces the government's leverage in future negotiations.

What is The Charles Stark Draper Laboratory, Inc.'s track record with the Trident II missile system and similar defense contracts?

The Charles Stark Draper Laboratory, Inc. has a long and established history with the Trident II missile system, having served as a key contractor for its development and ongoing support. Their expertise in guidance, navigation, and control systems is critical for such strategic weapons. Their track record generally indicates a high level of technical competence and reliability in handling complex defense programs. However, specific performance metrics and past issues, if any, would require a deeper dive into contract performance reports and historical data beyond the scope of this single award notice.

How does the $112.8 million contract value compare to the overall budget for the Trident II program or strategic missile maintenance within the DoD?

The $112.8 million contract value represents a significant investment in the maintenance and repair of the Trident II missile system. To contextualize this, it would need to be compared against the total annual budget allocated to the Trident II program, which includes procurement, operations, and sustainment. It would also be useful to compare it against the aggregate spending on maintenance and repair across all strategic missile systems within the Department of Defense. Without these broader budget figures, it's difficult to ascertain if this specific contract represents a large or small portion of the overall strategic missile sustainment expenditure.

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 INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQ, 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