Interior Department Awards $55M BPA Call for Skydio Drones, Lacking Competition

Contract Overview

Contract Amount: $55,146 ($55.1K)

Contractor: Skydio, Inc

Awarding Agency: Department of the Interior

Start Date: 2025-12-15

End Date: 2026-10-13

Contract Duration: 302 days

Daily Burn Rate: $183/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SKYDIO X2E AND NEXT GENERATION UNMANNED AIRCRAFT SYSTEM BLANKET PURCHASE AGREEMENT CALL

Place of Performance

Location: SAN MATEO, SAN MATEO County, CALIFORNIA, 94402

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $55,146.15 to SKYDIO, INC for work described as: SKYDIO X2E AND NEXT GENERATION UNMANNED AIRCRAFT SYSTEM BLANKET PURCHASE AGREEMENT CALL Key points: 1. Significant spending on unmanned aircraft systems (UAS) with a single vendor. 2. Limited competition raises concerns about price discovery and potential overspending. 3. Reliance on a single source for critical technology could pose supply chain risks. 4. The contract falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: questionable

The BPA Call value of $55.15 million over 302 days is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar UAS procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach, likely a BPA Call. This lack of full and open competition hinders price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competitive bidding could result in taxpayers paying more than necessary for these unmanned aircraft systems.

Public Impact

Taxpayers may be overpaying for advanced drone technology due to a lack of competition. The Department of the Interior is investing heavily in unmanned aircraft systems, potentially for surveillance or operational support. Dependence on a single supplier for critical drone technology could create vulnerabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole Source Potential
High Contract Value

Positive Signals

Procurement of advanced drone technology
Potential for operational efficiency gains

Sector Analysis

The Aircraft Manufacturing sector is experiencing rapid innovation in unmanned aerial systems. This BPA Call represents a significant investment in this technology by a federal agency, potentially setting a benchmark for future UAS procurements.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this BPA Call. The prime contractor, Skydio, Inc., is a significant player in the drone market.

Oversight & Accountability

The limited competition approach warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Transparency in the justification for not competing this BPA Call is crucial.

Related Government Programs

Aircraft Manufacturing
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Vendor lock-in risk
Supply chain vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $55,146.15 to SKYDIO, INC. SKYDIO X2E AND NEXT GENERATION UNMANNED AIRCRAFT SYSTEM BLANKET PURCHASE AGREEMENT CALL

Who is the contractor on this award?

The obligated recipient is SKYDIO, INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $55,146.15.

What is the period of performance?

Start: 2025-12-15. End: 2026-10-13.

What is the justification for not competing this BPA Call under full and open competition?

The provided data states 'NOT COMPETED UNDER SAP,' suggesting a limited competition strategy, possibly a BPA Call. A thorough review would require understanding the specific circumstances and justifications that led to this procurement approach, such as existing contract vehicles or urgent needs, to ensure it aligns with federal acquisition regulations and best practices.

What are the potential risks associated with relying on a single vendor for next-generation unmanned aircraft systems?

Relying on a single vendor, Skydio, Inc., for critical UAS technology introduces several risks. These include potential supply chain disruptions, lack of competitive pricing pressure leading to higher costs, vendor lock-in, and limited access to alternative technologies or innovations from other manufacturers. This dependence could also impact long-term sustainment and upgrade capabilities.

How does the $55.15 million investment in Skydio drones align with the Department of the Interior's broader technology modernization goals?

This significant investment in advanced drone technology suggests a strategic move by the Department of the Interior to leverage UAS for its diverse missions, which could include environmental monitoring, infrastructure inspection, search and rescue, or public safety. Understanding the specific operational requirements and how these drones contribute to modernization goals would provide a clearer picture of the investment's effectiveness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3000 CLEARVIEW WAY, SAN MATEO, CA, 94402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,146

Exercised Options: $55,146

Current Obligation: $55,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0424A0008

IDV Type: BPA

Timeline