DoD awards $59.9M to Electric Boat Corporation for Engineering Services, a sole-source contract

Contract Overview

Contract Amount: $59,899,097 ($59.9M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2008-05-05

End Date: 2011-06-30

Contract Duration: 1,151 days

Daily Burn Rate: $52.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ELECTRIC BOAT

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $59.9 million to ELECTRIC BOAT CORPORATION for work described as: ELECTRIC BOAT Key points: 1. Contract awarded to Electric Boat Corporation for engineering services. 2. The contract value is $59,899,097. 3. This was a sole-source, non-competed award. 4. The contract duration is 1151 days.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying more than necessary for engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration raises questions about long-term cost-effectiveness. Lack of transparency in the sole-source award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Specific engineering services provided
Established contractor relationship

Sector Analysis

This contract falls under Engineering Services within the broader defense sector. Spending in this area is critical for military readiness, but competitive procurement is generally preferred to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, which is common for large, specialized defense procurements.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of the Navy received fair pricing and that competition was appropriately waived.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for overpayment due to sole-source award.
Cost-plus contract type increases risk of cost overruns.
Lack of transparency in the procurement process.
Long contract duration may not reflect current needs or market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.9 million to ELECTRIC BOAT CORPORATION. ELECTRIC BOAT

Who is the contractor on this award?

The obligated recipient is ELECTRIC BOAT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $59.9 million.

What is the period of performance?

Start: 2008-05-05. End: 2011-06-30.

What justification was provided for the sole-source award, and was it thoroughly reviewed?

Sole-source awards require strong justification, typically citing unique capabilities or urgent needs. A thorough review ensures that competition was genuinely not feasible or beneficial. Without this information, it's difficult to assess if the government acted in the best interest of taxpayers by waiving competitive procedures.

How does the cost-plus fixed fee structure impact the final price compared to a fixed-price contract?

Cost-plus contracts allow the contractor to recover costs plus a fixed fee. While offering flexibility, they can incentivize higher spending as the contractor is reimbursed for costs incurred. A fixed-price contract would provide greater cost certainty for the government, making this award's structure a potential risk for cost escalation.

What specific engineering services were procured, and are they critical to ongoing naval operations?

Understanding the nature of the engineering services is crucial to assessing the contract's necessity and value. If these services are highly specialized and essential for critical naval platforms or programs, the sole-source award might be more justifiable, though still subject to price scrutiny.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 75 EASTERN POINT RD, GROTON, CT, 06340

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $127,348,072

Exercised Options: $127,348,072

Current Obligation: $59,899,097

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline