Draper Lab Awarded $145M for TRIDENT Guidance Systems Under Sole-Source Contract

Contract Overview

Contract Amount: $145,107,833 ($145.1M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-01

End Date: 2015-12-30

Contract Duration: 2,523 days

Daily Burn Rate: $57.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: TRIDENT GUIDANCE

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $145.1 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: TRIDENT GUIDANCE Key points: 1. Significant investment in critical defense technology. 2. Sole-source award raises questions about competition and price. 3. Long contract duration (2009-2015) suggests sustained need. 4. Engineering services sector, with high R&D component.

Value Assessment

Rating: questionable

The contract value of $145M over six years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential market alternatives for similar complex engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Ensures continued development and maintenance of critical missile guidance systems. Supports advanced engineering and technical expertise within the defense industrial base. Potential for cost overruns due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Critical defense system support
Long-term contract stability

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which often involves complex, specialized work for government clients, particularly in defense. Benchmarks are difficult without specific comparable sole-source contracts.

Small Business Impact

The contract was awarded to The Charles Stark Draper Laboratory, Inc., a large entity. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract was awarded by the Department of Defense, managed by the Defense Contract Management Agency. Oversight would focus on performance and cost control, though competition is a key accountability factor.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits price competition.
Cost-plus contract type can lead to cost overruns.
Lack of transparency in pricing due to non-competitive nature.
Potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.1 million to THE CHARLES STARK DRAPER LABORATORY, INC.. TRIDENT GUIDANCE

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 $145.1 million.

What is the period of performance?

Start: 2009-02-01. End: 2015-12-30.

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

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For complex defense systems like TRIDENT guidance, this might be due to proprietary technology, unique expertise, or critical national security requirements that limit viable alternatives.

How were costs controlled under the Cost Plus Incentive Fee (CPIF) structure?

The CPIF contract type incentivizes both the contractor and the government to control costs. It establishes target costs and fee amounts, with adjustments made based on actual costs and performance. The government aims to share in cost savings if the contractor performs below target, and the contractor earns more if performance targets are met or exceeded.

What is the long-term strategic value of this investment in TRIDENT guidance systems?

The TRIDENT missile system is a cornerstone of the U.S. strategic nuclear deterrent. Continued investment in its guidance systems ensures the reliability, accuracy, and effectiveness of this critical capability, maintaining strategic balance and national security.

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: N0003009Q0011

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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

Financial Breakdown

Contract Ceiling: $145,107,833

Exercised Options: $145,107,833

Current Obligation: $145,107,833

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline