DoD awards $26.7M for Trident II Missile System Development, raising cost concerns

Contract Overview

Contract Amount: $26,697,666 ($26.7M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-11-15

End Date: 2005-11-30

Contract Duration: 380 days

Daily Burn Rate: $70.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200503!00A012!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0009 !A!N! !N! !P00001!20041115!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000026921786!N!N!000000000000!AC27!RDTE/MISSILE AND SPACE SYSTEMS-OP SYSTEM DEVELOP !S1 !SERVICES !178 !TRIDENT II MISSILE !541710!E! !3! ! !C! ! !20200930!B! ! !A! !D!U!U!1!001!N!1A!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! !1700!N00030!0001! !

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200503!00A012!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0009 !A!N! !N! !P00001!20041115!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDD… Key points: 1. Significant contract value for R&D in a critical defense program. 2. Sole-source award limits competition and potentially inflates costs. 3. High per-unit cost suggests potential inefficiencies or specialized requirements. 4. Focus on R&D for missile systems indicates long-term strategic investment.

Value Assessment

Rating: concerning

The contract's total value of $26.7M for a 13-month period, with a reported base of $25.9M, appears high given the limited duration and the nature of R&D services. Benchmarking against similar R&D contracts for missile systems is difficult without more specific cost breakdowns.

Cost Per Unit: $70,257 (based on 380 days)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may lead to higher costs for taxpayers as the contractor faces no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition in this sole-source award could result in the government paying more than necessary, directly impacting taxpayer funds allocated for defense.

Public Impact

Taxpayers may be overpaying for critical missile system development due to a lack of competition. The sole-source nature of the award raises questions about the government's procurement strategy for essential defense technologies. Future defense budgets could be strained if similar non-competitive awards become standard practice for R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Lack of transparency in pricing

Positive Signals

Supports critical defense technology development
Addresses strategic missile system needs

Sector Analysis

This contract falls within the Research and Development sector, specifically for missile and space systems. The spending benchmark for R&D can vary widely, but significant sole-source awards for advanced technology warrant scrutiny due to potential cost overruns and limited innovation.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to a single, established research laboratory. This contract does not appear to support small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering value and that costs are reasonable, even without competitive pressure. Accountability for the R&D outcomes is crucial.

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 and price discovery.
High per-unit cost warrants further investigation into efficiency and value.
Lack of small business participation.
Potential for cost overruns in R&D contracts.
Limited transparency in pricing and justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200503!00A012!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0009 !A!N! !N! !P00001!20041115!20050930!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000026921786!N!N!000000000000!AC27!RDTE/MISSILE AND SPACE SYSTEMS-OP SYSTEM DEVELOP !S1 !SERVICES !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 $26.7 million.

What is the period of performance?

Start: 2004-11-15. End: 2005-11-30.

What specific factors justify the sole-source award and the associated cost for this missile system R&D?

Justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The high cost may be attributed to the specialized nature of advanced missile system development, extensive research hours, and the need for highly skilled personnel. A detailed review of the justification documentation and cost proposals would be necessary to fully assess the validity of these factors.

How does the per-unit cost of $70,257 compare to similar R&D efforts for advanced missile systems?

Benchmarking this per-unit cost is challenging without access to classified data or detailed cost breakdowns of comparable sole-source R&D contracts. However, for non-classified R&D, this figure appears on the higher end, suggesting either highly specialized work, significant overhead, or potential inefficiencies. Further analysis would require comparing it against publicly available data for similar, non-proprietary research projects or seeking expert opinions within the defense R&D community.

What are the long-term implications of awarding such a significant contract without competition for national defense capabilities?

Sole-source awards, while sometimes necessary, can stifle innovation and competition in the long run. If this becomes a pattern for critical defense technologies, it could lead to reduced technological advancement and higher sustained costs for the military. It also raises concerns about the government's ability to attract new, innovative companies into the defense sector if established players consistently receive non-competitive contracts.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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