Draper Lab Awarded $60.7M for TRIDENT LE2 R&D, Lacking Competition

Contract Overview

Contract Amount: $60,662,150 ($60.7M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2022-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $55.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TRIDENT LE2 ADVANCED DEVELOPMENT (FY20) (R&D)

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: TRIDENT LE2 ADVANCED DEVELOPMENT (FY20) (R&D) Key points: 1. Significant R&D investment in advanced development for TRIDENT LE2. 2. Sole-source award to The Charles Stark Draper Laboratory, Inc. raises competition concerns. 3. Contract duration of 1095 days suggests a long-term project. 4. Engineering services sector, with a focus on defense applications.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

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 may result in the government paying a premium for these engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific advancements funded by this contract are not detailed, limiting public understanding of the R&D's value. The long-term nature of the contract raises questions about sustained investment in this specific technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Awarded to a known entity
Clear project designation (TRIDENT LE2)

Sector Analysis

This contract falls within the Engineering Services sector, specifically for defense-related R&D. Spending in this area is critical for national security but requires careful oversight to ensure value for money.

Small Business Impact

The contract was awarded to The Charles Stark Draper Laboratory, Inc., a large entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight by the Defense Contract Management Agency to ensure costs are reasonable and the project stays within scope and budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and price discovery.
Cost-plus contract type carries inherent risk of cost overruns.
Lack of transparency regarding specific R&D objectives and expected outcomes.
Potential for contractor inefficiency due to lack of competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to THE CHARLES STARK DRAPER LABORATORY, INC.. TRIDENT LE2 ADVANCED DEVELOPMENT (FY20) (R&D)

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 $60.7 million.

What is the period of performance?

Start: 2019-10-01. End: 2022-09-30.

What specific technological advancements are expected from this $60.7M R&D investment, and how do they align with current defense priorities?

The contract details are limited, but the TRIDENT LE2 designation suggests a focus on advanced development related to naval systems or missile technology. Specific advancements are not publicly disclosed, making it difficult to assess their alignment with current defense priorities without further information from the Department of Defense.

Given the sole-source award, what mechanisms are in place to ensure the cost-plus-fixed-fee structure does not lead to excessive contractor profit or inefficient spending?

The Defense Contract Management Agency is responsible for overseeing this contract. They would typically employ various methods, including audits and performance monitoring, to ensure costs are reasonable and the contractor is operating efficiently. However, the inherent risks of cost-plus contracts, especially sole-source ones, remain.

How will the effectiveness of the TRIDENT LE2 advanced development be measured, and what are the key performance indicators for this long-term R&D effort?

Effectiveness metrics for R&D contracts are often tied to milestones, prototype development, and successful testing phases. Specific KPIs for TRIDENT LE2 are not publicly available. The 3-year duration suggests a phased approach to development and evaluation, with success likely measured by the achievement of defined technical objectives.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003020R0004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQ, CAMBRIDGE, MA, 02139

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

Financial Breakdown

Contract Ceiling: $89,015,130

Exercised Options: $89,015,130

Current Obligation: $60,662,150

Actual Outlays: $3,447,317

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $3,508,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline