Draper Lab Awarded $300M for Missile Parts, Lacking Competition
Contract Overview
Contract Amount: $299,573,852 ($299.6M)
Contractor: THE Charles Stark Draper Laboratory, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-08
End Date: 2018-03-31
Contract Duration: 1,849 days
Daily Burn Rate: $162.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MOD 1 G S OTHER SPALT MATERIAL
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139
Plain-Language Summary
Department of Defense obligated $299.6 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: MOD 1 G S OTHER SPALT MATERIAL Key points: 1. Significant contract value of $299.6 million awarded to a single entity. 2. Sole-source award raises concerns about potential overpricing and lack of market pressure. 3. Contract duration of over 5 years suggests long-term reliance on this supplier. 4. The sector is Other Guided Missile and Space Vehicle Parts Manufacturing, a specialized defense area.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar sole-source contracts in this niche sector would be necessary for a thorough evaluation.
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 competition, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical missile parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single supplier for critical defense components poses a potential supply chain risk. The long contract duration could lock the government into potentially suboptimal pricing for an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- High contract value
Positive Signals
- Specific material/parts for missile systems
- Awarded to a known entity in the defense sector
Sector Analysis
This contract falls within the specialized defense manufacturing sector, specifically for guided missile and space vehicle parts. Spending in this area is often characterized by high technical requirements and limited supplier bases, but competition is still crucial.
Small Business Impact
The contract was awarded to The Charles Stark Draper Laboratory, Inc., a large entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Accountability for the pricing and performance should be rigorously maintained by the Department of the Navy.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Long contract duration increases risk
- Lack of transparency in price justification
- Dependency on a single supplier for critical components
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $299.6 million to THE CHARLES STARK DRAPER LABORATORY, INC.. MOD 1 G S OTHER SPALT MATERIAL
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 $299.6 million.
What is the period of performance?
Start: 2013-03-08. End: 2018-03-31.
What is the justification for the sole-source award, and has it been adequately documented?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or a lack of viable alternatives. For this contract, the Department of Defense would need to provide detailed documentation proving that only The Charles Stark Draper Laboratory, Inc. could fulfill the requirement. Without this documentation, the award's legitimacy is questionable.
How does the per-unit cost compare to similar components procured competitively?
Without access to specific per-unit cost data and comparable competitive contracts, a direct comparison is impossible. However, the absence of competition strongly suggests that the per-unit cost may be higher than if multiple vendors had bid. Further analysis would require access to detailed cost breakdowns and market research.
What are the potential risks associated with relying on a single supplier for these critical missile parts over a five-year period?
The primary risks include supply chain disruptions (e.g., the supplier facing financial issues, production problems, or geopolitical events), potential for price gouging due to lack of alternatives, and reduced incentive for the supplier to innovate or improve efficiency. This long-term dependency could also hinder the adoption of newer, potentially superior technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $299,573,852
Exercised Options: $299,573,852
Current Obligation: $299,573,852
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $300,170,010
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-03-08
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2025-03-28
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