DoD Awards $62.5M Engineering Services Contract to Electric Boat Corp. with No Competition
Contract Overview
Contract Amount: $62,537,996 ($62.5M)
Contractor: Electric Boat Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2025-08-31
Contract Duration: 1,948 days
Daily Burn Rate: $32.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UKALT 2653 SSI INC 8 DDP
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06340
Plain-Language Summary
Department of Defense obligated $62.5 million to ELECTRIC BOAT CORPORATION for work described as: UKALT 2653 SSI INC 8 DDP Key points: 1. Significant contract value awarded without competitive bidding. 2. Sole-source award to Electric Boat Corporation for engineering services. 3. Potential for higher costs due to lack of competition. 4. Contract spans nearly 3.5 years, indicating long-term need.
Value Assessment
Rating: questionable
The contract value of $62.5M for engineering services is substantial. Without competitive data, it's difficult to assess if this price is reasonable compared to similar services. The 'NOT COMPETED' status raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is a key driver of competitive pricing.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible value for these engineering services.
Public Impact
Taxpayers may be overpaying for essential engineering services due to the absence of competitive bidding. The long duration of the contract (over 3 years) suggests a sustained need for these services, making the lack of competition more impactful. Limited transparency into the justification for a sole-source award could hinder public trust in procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated costs
Positive Signals
- Contract awarded to established entity (Electric Boat Corp.)
- Clear contract end date
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a critical sector for defense projects. Spending in this area is often substantial, and competitive bidding is typically expected to ensure cost-effectiveness and innovation.
Small Business Impact
The contract was awarded to Electric Boat Corporation, a large, established entity. There is no indication that small businesses were involved in this sole-source procurement, missing an opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further scrutiny to ensure the justification for bypassing competition was sound and that appropriate oversight was in place to manage costs and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in award justification
- No small business participation evident
Tags
engineering-services, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.5 million to ELECTRIC BOAT CORPORATION. UKALT 2653 SSI INC 8 DDP
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 $62.5 million.
What is the period of performance?
Start: 2020-05-01. End: 2025-08-31.
What was the specific justification for awarding this significant engineering services contract on a sole-source basis, and were alternative competitive strategies considered and rejected?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without detailed documentation, it's impossible to confirm if alternatives were explored or if the justification holds up under scrutiny. This lack of transparency raises concerns about the procurement process and potential missed opportunities for better value.
How does the cost of this sole-source contract compare to industry benchmarks for similar engineering services, and what mechanisms are in place to control costs given the absence of competition?
Benchmarking costs for sole-source contracts is challenging without comparative data. The absence of competition inherently limits price discovery, potentially leading to higher costs. Robust cost-plus fixed fee contract management, including detailed audits and performance monitoring, is crucial to mitigate this risk and ensure taxpayer funds are used efficiently.
What is the expected impact of this sole-source award on future competition for similar engineering services within the Department of Defense?
Sole-source awards can sometimes discourage future competition if potential bidders perceive that established contractors will consistently receive preferential treatment. This can reduce the incentive for new entrants or smaller firms to invest in developing capabilities relevant to the agency's needs, potentially limiting future options and driving up long-term costs.
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
Solicitation ID: N0003020R0028
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 75 EASTERN POINT RD, GROTON, CT, 06340
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $64,659,751
Exercised Options: $64,042,317
Current Obligation: $62,537,996
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $-12,125,316
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-05-01
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-30
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