DoD's $31.8M TRIDENT ERO Contract with Electric Boat Corporation Lacks Competition

Contract Overview

Contract Amount: $31,850,123 ($31.9M)

Contractor: Electric Boat Corporation

Awarding Agency: Department of Defense

Start Date: 2014-04-20

End Date: 2017-04-30

Contract Duration: 1,106 days

Daily Burn Rate: $28.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TRIDENT ERO ADVANCE PLANNING, EXECUTION

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06340

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to ELECTRIC BOAT CORPORATION for work described as: IGF::OT::IGF TRIDENT ERO ADVANCE PLANNING, EXECUTION Key points: 1. Significant spending on a sole-source contract for engineering services. 2. Electric Boat Corporation is a major defense contractor, potentially limiting competition. 3. Lack of competition raises concerns about price discovery and value for taxpayer money. 4. The contract falls within the Engineering Services sector.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. The awarded amount of $31.8M over 1106 days suggests a substantial investment without clear market-based pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher costs and reduced innovation as there is no market pressure to offer the best price or solution.

Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the services had been procured through a competitive process.

Public Impact

Taxpayers may be overpaying for engineering services due to the lack of competitive bidding. The sole-source nature of this contract limits transparency in how funds were allocated. Future contracts of this type could benefit from a more competitive procurement strategy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Contract awarded to a known entity in the defense sector

Sector Analysis

This contract for engineering services (NAICS 541330) supports the Department of the Navy's TRIDENT ERO program. Spending in this sector can be substantial, particularly for specialized defense applications, but competitive bidding is crucial for cost efficiency.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Sole-source awards often bypass opportunities for small business participation.

Oversight & Accountability

The lack of competition suggests potential weaknesses in oversight regarding cost-effectiveness. Further review would be needed to ensure the fixed fee was appropriate and that costs were reasonable.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated costs due to lack of market pressure.
Limited transparency on cost justification and fee determination.
No indication of small business participation.
Contract duration is significant, increasing exposure to potential inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to ELECTRIC BOAT CORPORATION. IGF::OT::IGF TRIDENT ERO ADVANCE PLANNING, EXECUTION

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 $31.9 million.

What is the period of performance?

Start: 2014-04-20. End: 2017-04-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. However, without this information, it's impossible to determine if competitive strategies were adequately explored or if this was a missed opportunity for better value.

How was the fixed fee determined in this cost-plus-fixed-fee contract, and is it benchmarked against similar sole-source engineering contracts?

The data does not provide details on how the fixed fee was determined or benchmarked. Cost-plus-fixed-fee contracts aim to incentivize efficiency, but without transparency on the fee structure and comparison to similar contracts, it's difficult to ascertain if it represents fair value or if it was inflated due to the lack of competition.

What specific engineering services were provided under this contract, and how did they contribute to the TRIDENT ERO program's objectives?

The data identifies the contract as 'TRIDENT ERO ADVANCE PLANNING, EXECUTION' under Engineering Services. While the general purpose is clear, the specific deliverables, technical contributions, and their direct impact on the TRIDENT ERO program's success are not detailed in this dataset, limiting a full assessment of effectiveness.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE 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

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: $31,850,123

Exercised Options: $31,850,123

Current Obligation: $31,850,123

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $211,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline