DoD awards $1.3B contract for advanced hypersight systems to Charles Stark Draper Laboratory

Contract Overview

Contract Amount: $13,011,151 ($13.0M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-14

End Date: 2029-09-30

Contract Duration: 1,661 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HYPERSIGHT PHASE I

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: HYPERSIGHT PHASE I Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant investment in advanced technology development for the Navy. 3. Long contract duration of over 5 years suggests a complex, multi-phase project. 4. Cost-plus-fixed-fee structure may incentivize cost overruns. 5. High dollar value indicates critical strategic importance. 6. Potential for follow-on work or integration with other defense systems.

Value Assessment

Rating: questionable

The contract's value of $1.3 billion over approximately five years is substantial. Without comparable sole-source contracts for similar hypersight systems, a direct value-for-money assessment is difficult. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost escalation as the contractor is reimbursed for allowable costs plus a fixed fee. Benchmarking against industry standards for engineering services in advanced defense systems would be necessary to determine if the fixed fee is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that taxpayers do not benefit from the price discovery that occurs in a competitive environment, potentially leading to higher costs.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the lowest possible price through competitive negotiation, potentially increasing the financial burden on taxpayers.

Public Impact

The Department of the Navy will benefit from advanced hypersight capabilities, potentially enhancing situational awareness and operational effectiveness. Services delivered include research, development, and potentially prototyping of advanced systems. The primary geographic impact is likely within the defense sector, with potential applications across various naval platforms. Workforce implications include specialized engineering and technical roles at The Charles Stark Draper Laboratory.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract type can lead to cost overruns.
Long contract duration increases exposure to changing technological landscapes and requirements.

Positive Signals

Award to a known entity (Charles Stark Draper Laboratory) suggests confidence in their specialized expertise.
Focus on advanced technology development aligns with strategic defense modernization goals.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technology development. The market for specialized defense engineering services is often characterized by high barriers to entry due to intellectual property, security clearances, and deep technical expertise. Comparable spending benchmarks would be difficult to establish without more specific details on the hypersight technology, but significant R&D contracts in defense often run into hundreds of millions or billions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, The Charles Stark Draper Laboratory, Inc., is a large organization. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, though the contractor may engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Accountability measures will be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed cost reporting and performance metrics. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of hypersight technology. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Sensor Development Programs
Naval Research and Development
Defense Intelligence Systems
Electronic Warfare Systems
Command and Control Systems

Risk Flags

Sole-source award
Cost-plus contract type
High contract value
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to THE CHARLES STARK DRAPER LABORATORY, INC.. HYPERSIGHT PHASE I

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 $13.0 million.

What is the period of performance?

Start: 2025-03-14. End: 2029-09-30.

What is the specific technological capability of the 'hypersight' system being developed?

The provided data does not specify the exact technological capabilities of the 'hypersight' system. 'Hypersight' typically refers to systems that provide enhanced situational awareness, often involving advanced sensor fusion, artificial intelligence, and real-time data processing to give users a comprehensive view of their operational environment. In a defense context, this could involve advanced radar, electro-optical/infrared (EO/IR) systems, or integrated intelligence, surveillance, and reconnaissance (ISR) platforms. The contract's focus on engineering services suggests development, integration, and potentially prototyping of such advanced capabilities for naval applications.

What is the historical spending pattern for hypersight systems or similar technologies by the Department of the Navy?

The provided data does not include historical spending patterns for hypersight systems or similar technologies. However, the award of a $1.3 billion contract indicates a significant and sustained investment. Defense agencies, particularly the Navy, consistently invest heavily in advanced sensor and situational awareness technologies due to their critical role in maintaining operational superiority. Analyzing past budgets for R&D in areas like ISR, electronic warfare, and advanced targeting systems would provide context, but specific figures for 'hypersight' are not available in this dataset. This large award suggests a strategic priority and potentially a new generation of capability.

What is the track record of The Charles Stark Draper Laboratory, Inc. with the Department of Defense and similar contracts?

The Charles Stark Draper Laboratory, Inc. (CSDL) has a long-standing and extensive track record of working with the Department of Defense and other government agencies, particularly in areas of advanced engineering, research, and development. They are well-known for their expertise in guidance, navigation, and control systems, as well as complex system integration. CSDL has historically been involved in numerous high-value defense contracts, often involving classified or highly specialized technologies. Their experience suggests a strong capability to undertake complex projects like the hypersight system, and their past performance with the DoD would likely have been a key factor in the sole-source award decision.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for R&D in this sector?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development (R&D) efforts where the scope of work is not fully defined at the outset, or where innovation and exploration are primary objectives. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government to adapt requirements during development but shifts more cost risk to the government. Other R&D contract types include Cost Plus Incentive Fee (CPIF), which adds performance incentives, and Cost Plus Award Fee (CPAF), which links fee to subjective performance evaluations. CPFF is generally considered less cost-conscious than fixed-price options but provides a framework for managing R&D uncertainty.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate efficiently. Without competing bids, the government may not achieve the best possible value for its investment. Furthermore, sole-source awards can create vendor lock-in, making it difficult to switch to alternative solutions or contractors in the future. There's also a risk that the government's understanding of the technology or market may be incomplete, leading to a contract that doesn't fully meet evolving needs or is priced inappropriately. Transparency and robust oversight become even more critical in sole-source situations to mitigate these risks.

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: N0003024R6005

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: $308,270,645

Exercised Options: $26,022,656

Current Obligation: $13,011,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline