DoD's $54.1M R&D contract for missile systems awarded to Charles Stark Draper Laboratory, Inc

Contract Overview

Contract Amount: $54,144,291 ($54.1M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-30

End Date: 2012-03-31

Contract Duration: 2,466 days

Daily Burn Rate: $22.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200509!002539!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05CR201 !A!N! !N! ! !20050630!20100630!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000000034112!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!N!U!1!001!N!1G!Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: 200509!002539!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05CR201 !A!N! !N! ! !20050630!20100630!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDD… Key points: 1. Contract awarded for missile and space systems research and development. 2. Significant portion of contract value allocated to research and development. 3. Contract duration of approximately 6.8 years. 4. Awarded to a single, established research laboratory. 5. No small business set-aside or subcontracting noted. 6. Geographic focus on Massachusetts.

Value Assessment

Rating: fair

The contract value of $54.1 million for research and development in missile and space systems appears reasonable given the specialized nature of the work and the contractor's expertise. However, without specific benchmarks for comparable R&D contracts in this niche, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee structure suggests that while the contractor has an incentive to control costs, the government bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This suggests that the Department of the Army identified The Charles Stark Draper Laboratory, Inc. as the only responsible source capable of performing the required research and development. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government did not benefit from the cost-saving pressures that typically arise from a competitive procurement process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, which receives advanced research and development for missile and space systems. The contract supports the development of technologies crucial for national defense and strategic capabilities. The geographic impact is concentrated in Massachusetts, supporting high-tech research and development jobs in the Cambridge area. The contract directly employs highly skilled scientists, engineers, and technical personnel at The Charles Stark Draper Laboratory.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract structure shifts cost overrun risk to the government.
Lack of transparency regarding the justification for sole-source award.
Long contract duration could lead to scope creep or outdated technology if not managed effectively.

Positive Signals

Award to a specialized research laboratory with a strong track record in defense R&D.
Focus on critical missile and space systems development for national security.
Contract supports advanced technological capabilities for the U.S. military.
Potential for significant advancements in defense technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on defense-applied research in missile and space systems. The market for such specialized R&D is often dominated by a few highly capable research institutions and defense contractors. Benchmarking comparable spending is difficult due to the unique nature of defense R&D, but the value reflects the high cost of specialized scientific and engineering expertise required for advanced weapon system development.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of the research and the sole-source award to a large, established laboratory, there are no direct subcontracting implications for small businesses mentioned. This contract does not contribute to the small business ecosystem in terms of set-aside goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the Cost Plus Fixed Fee contract. Transparency is limited due to the sole-source nature of the award, with justifications for the procurement method being key to understanding oversight.

Related Government Programs

Missile Defense Agency Research Programs
Army Research Laboratory Programs
Advanced Weapons Systems Development
Space Systems Research Contracts

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to THE CHARLES STARK DRAPER LABORATORY, INC.. 200509!002539!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05CR201 !A!N! !N! ! !20050630!20100630!066587478!066587478!066587478!N!THE DRAPER CHARLES STARK LABOR!555 TECHNOLOGY SQ !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000000034112!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !202

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 Army).

What is the total obligated amount?

The obligated amount is $54.1 million.

What is the period of performance?

Start: 2005-06-30. End: 2012-03-31.

What is The Charles Stark Draper Laboratory's track record with government R&D contracts, particularly in missile and space systems?

The Charles Stark Draper Laboratory has a long and distinguished history of supporting government R&D, particularly in areas critical to national security, including guidance, navigation, and control systems for missiles and spacecraft. They have been a key player in developing technologies for numerous defense programs. Their expertise is well-established, and they have consistently secured significant government contracts in these specialized fields. This specific contract builds upon that established relationship and expertise, focusing on advancements in missile and space systems.

How does the $54.1 million contract value compare to similar R&D efforts in missile and space systems?

Directly comparing the $54.1 million value is challenging without access to proprietary data on similar sole-source R&D contracts. However, given the complexity and long lead times associated with developing advanced missile and space systems, this figure is not inherently excessive for a multi-year research effort. Contracts of this nature often involve highly specialized personnel, advanced facilities, and significant material costs. The value reflects the investment required to push the boundaries of technological capability in a critical defense sector.

What are the primary risks associated with this sole-source, cost-plus-fixed-fee contract?

The primary risks are related to the procurement method and contract type. A sole-source award eliminates competitive pressure, potentially leading to a higher price than if the contract were competed. The cost-plus-fixed-fee structure means the government bears the risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-consciousness from the contractor. Additionally, there's a risk that the R&D may not yield the desired technological advancements or that the technology could become obsolete during the contract's long duration if not managed proactively.

How effective is the R&D likely to be given the contractor and contract type?

The effectiveness is likely to be high in terms of technical execution due to The Charles Stark Draper Laboratory's specialized expertise and established track record in missile and space systems R&D. However, the effectiveness from a value-for-money perspective is less certain due to the sole-source nature. The cost-plus-fixed-fee structure provides a baseline for reimbursement but relies heavily on the contractor's internal controls and the government's oversight to ensure efficient use of funds. The government's ability to define clear, achievable R&D objectives and monitor progress will be crucial.

What are the historical spending patterns for missile and space systems R&D by the Department of the Army?

The Department of the Army, like other branches of the DoD, consistently allocates substantial funding towards research and development for missile and space systems. Historical spending patterns show a continuous investment in this area, driven by evolving threats and the need for technological superiority. Budgets fluctuate based on strategic priorities, technological breakthroughs, and geopolitical factors. Contracts like this one represent a portion of that ongoing investment, often awarded to specialized entities with unique capabilities to advance critical defense technologies.

What is the justification for awarding this contract on a sole-source basis?

While the provided data indicates a sole-source award ('CT': 'NOT COMPETED'), the specific justification is not detailed. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services. For highly specialized R&D in areas like missile and space systems, this often involves unique technical expertise, proprietary data, or critical infrastructure possessed by a single entity. The government would have had to formally document why other potential sources were not capable of meeting the requirement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W31P4Q04RR024

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQUARE, CAMBRIDGE, MA, 02139

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline