DoD Awards $679M Engineering Services Contract to Charles Stark Draper Laboratory, Inc

Contract Overview

Contract Amount: $678,957,296 ($679.0M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2025-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $465.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: GUIDANCE TES FY22 EO14042

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $679.0 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: GUIDANCE TES FY22 EO14042 Key points: 1. Significant contract value of $679M awarded. 2. Sole-source award raises questions about competition and price discovery. 3. Contract duration of 4 years (1460 days) indicates a long-term need. 4. Engineering Services sector sees substantial investment.

Value Assessment

Rating: questionable

The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar engineering services.

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 may result in higher costs for taxpayers compared to a competitively bid contract.

Taxpayer Impact: The lack of competition for a nearly $679M contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests critical, ongoing engineering needs for the Department of the Navy. The specific engineering services provided are not detailed, making it hard to gauge direct public benefit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency on specific services

Positive Signals

Long-term contract indicates critical need
Potential for innovation through specialized provider

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for complex government projects. The benchmark for spending in this sector can vary widely based on project scope and agency.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that costs are reasonable and justified throughout the contract's life.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost overruns (CPIF)
Limited transparency on services
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $679.0 million to THE CHARLES STARK DRAPER LABORATORY, INC.. GUIDANCE TES FY22 EO14042

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $679.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-09-30.

What specific engineering services are being procured under this contract, and how do they align with the Department of the Navy's strategic objectives?

The contract is for engineering services, but the specific nature of these services is not detailed in the provided data. Understanding the precise technical requirements and their contribution to the Navy's mission is crucial for assessing the contract's strategic alignment and overall value. Without this information, it's difficult to determine if the significant investment is directed towards the most critical needs.

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

The data indicates the contract was 'NOT COMPETED,' implying a sole-source justification. Typically, sole-source awards require a strong rationale, such as unique capabilities or urgent needs. Without this justification, it's impossible to assess the risk of inflated pricing or the missed opportunity for cost savings that competition might have provided. Further investigation into the justification is warranted.

How will the effectiveness and efficiency of the engineering services provided by Charles Stark Draper Laboratory be measured and evaluated throughout the contract period?

Given the Cost Plus Incentive Fee (CPIF) structure, performance metrics and incentive targets are critical for ensuring effectiveness and controlling costs. The contract's success hinges on well-defined deliverables, measurable outcomes, and robust oversight mechanisms. Without clear performance indicators and evaluation processes, there's a risk of suboptimal service delivery and potential cost overruns, impacting overall value for money.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003022R6002

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $854,685,882

Exercised Options: $744,943,283

Current Obligation: $678,957,296

Actual Outlays: $1,525,486

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $21,685,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline