Drone Amplified Inc. awarded a $10.4M BPA call for drone parts, raising questions about competition and value

Contract Overview

Contract Amount: $10,400 ($10.4K)

Contractor: Drone Amplified Inc

Awarding Agency: Department of the Interior

Start Date: 2026-04-09

End Date: 2027-02-07

Contract Duration: 304 days

Daily Burn Rate: $34/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRONE AMPLIFIED BLANKET PURCHASE AGREEMENT CALL ORDER

Place of Performance

Location: LINCOLN, LANCASTER County, NEBRASKA, 68502

State: Nebraska Government Spending

Plain-Language Summary

Department of the Interior obligated $10,400 to DRONE AMPLIFIED INC for work described as: DRONE AMPLIFIED BLANKET PURCHASE AGREEMENT CALL ORDER Key points: 1. The contract was not competed under SAP, suggesting limited market exploration. 2. Pricing for drone parts needs benchmarking against similar government and commercial contracts. 3. The firm-fixed-price structure offers some cost certainty but may not reflect true market value without competition. 4. Performance context is limited due to the 'Other Aircraft Parts' NAICS code, lacking specific drone component detail. 5. The contract's duration extends into early 2027, indicating a medium-term need for these components. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this BPA call is challenging without detailed pricing data and comparison to similar sole-source or limited-competition awards for drone components. The firm-fixed-price contract type provides some cost certainty, but the lack of competitive bidding means the government may not be achieving the best possible price. Further analysis would require comparing unit costs for specific drone parts against market rates or other government contracts for similar items to assess if the $10.4 million ceiling represents a fair and reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a BPA Call under a Blanket Purchase Agreement that was not competed under SAP (Simplified Acquisition Procedures). This indicates a lack of open competition for this specific call order. While the underlying BPA might have had some competition, the award mechanism for this call suggests it was likely awarded to a single vendor without soliciting bids from multiple sources, potentially limiting price discovery and market efficiency.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. Without competitive pressure, the government might be paying a premium for these drone parts.

Public Impact

The Department of the Interior benefits from the acquisition of essential drone components. These parts will likely support various drone operations for surveillance, data collection, and other missions. The geographic impact is likely nationwide, supporting DOI operations across different regions. The contract supports the drone manufacturing and parts supply industry, potentially impacting workforce needs in that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment.
Limited transparency on specific components and their pricing.
NAICS code 'Other Aircraft Parts' is broad and may obscure the specific nature of drone components.
No indication of small business subcontracting goals.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
BPA structure can streamline future ordering processes for approved items.
Award supports critical technology for agency operations.

Sector Analysis

The contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on parts for unmanned aerial systems (UAS) or drones. This sector is experiencing rapid growth driven by both commercial and government demand. While specific market size data for drone parts procured through BPA calls is not readily available, the overall UAS market is projected to reach tens of billions of dollars globally in the coming years. This contract represents a portion of the government's investment in maintaining and expanding its drone capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information provided regarding subcontracting plans (st: NE, sn: NEBRASKA). This suggests that opportunities for small businesses to participate in fulfilling this contract may be limited. Without a small business set-aside or explicit subcontracting requirements, the prime contractor, Drone Amplified Inc., has discretion over subcontracting, potentially impacting the broader small business ecosystem within the drone parts supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and potentially its Office of Inspector General, depending on the scale and nature of any irregularities. Transparency is limited due to the non-competed nature and lack of detailed component information. Accountability measures would rely on the terms of the BPA call and the firm-fixed-price agreement, with recourse typically involving contract modifications, termination, or dispute resolution processes if performance or pricing issues arise.

Related Government Programs

Department of the Interior Drone Procurement
Unmanned Aircraft Systems (UAS) Parts
Blanket Purchase Agreements (BPAs)
Aircraft Parts Manufacturing
Federal Aviation Administration (FAA) Regulations for Drones

Risk Flags

Non-competitive award
Lack of detailed component pricing
Broad NAICS code classification
No stated small business subcontracting goals

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10,400 to DRONE AMPLIFIED INC. DRONE AMPLIFIED BLANKET PURCHASE AGREEMENT CALL ORDER

Who is the contractor on this award?

The obligated recipient is DRONE AMPLIFIED INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10,400.

What is the period of performance?

Start: 2026-04-09. End: 2027-02-07.

What specific drone components are covered under this BPA call, and what is the unit pricing for key items?

The provided data does not specify the exact drone components covered under this BPA call, only that it falls under NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). Without a detailed list of parts and their associated unit prices, it is impossible to conduct a thorough value analysis. The total award amount of $10.4 million represents a ceiling, and the actual spending will depend on the quantities ordered. To assess value, a breakdown of components (e.g., rotors, batteries, sensors, airframes) and their respective prices would be necessary, allowing for comparison against market rates and other government contracts.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'BPA CALL'. This suggests that the procurement likely leveraged an existing Blanket Purchase Agreement (BPA). However, the specific justification for not competing this particular call order under SAP or through other competitive means is not provided. Potential reasons for sole-source awards can include urgency, lack of available sources, or specific technical requirements that only one vendor can meet. Without further documentation, the rationale remains unclear, raising concerns about potential missed opportunities for cost savings through competition.

How does the $10.4 million ceiling compare to historical spending on similar drone parts by the Department of the Interior or other agencies?

Comparing the $10.4 million ceiling requires historical spending data for similar drone parts procured by the Department of the Interior (DOI) or other federal agencies. The provided data lacks this context. To perform a meaningful comparison, one would need to identify previous contracts for comparable drone components, analyze their total values, contract types, and durations, and adjust for inflation if necessary. Without such data, it's difficult to ascertain whether this ceiling represents an increase, decrease, or is in line with past procurement trends for essential drone equipment.

What are the potential risks associated with awarding a large BPA call for drone parts without open competition?

The primary risk associated with awarding a large BPA call for drone parts without open competition is the potential for paying inflated prices due to the lack of market pressure. Without multiple bids, the government may not achieve the best value for its money. Other risks include limited vendor options in the future if reliance on a single source grows, potential for substandard quality if vendor selection was not rigorously vetted, and reduced transparency in the procurement process. This can also set a precedent for future non-competed awards, potentially hindering overall government efficiency in acquiring technology.

What is the expected performance period and delivery timeline for these drone parts?

The BPA call has a stated start date of 2026-04-09 and an end date of 2027-02-07. This provides a performance period of approximately 1 year and 4 months (or 304 days as indicated by 'dur'). While this defines the overall window for the contract, it does not specify the delivery timeline for individual orders placed under this call. Typically, BPA calls would include delivery terms or reference a schedule within the underlying BPA. The agency would expect timely delivery of components as needed to support ongoing drone operations throughout this period.

Does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code adequately represent the specialized nature of drone components?

The NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' is a broad classification that encompasses a wide range of components for various types of aircraft, including drones. While it is technically applicable, it may not fully capture the specialized nature of many drone components, which can include advanced sensors, proprietary software, specialized batteries, and unique propulsion systems. Using a more specific code, if available, could provide better industry context and potentially facilitate more targeted market research and competition in the future. However, for a BPA call covering a variety of parts, this broader code might be deemed sufficient by the contracting agency.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: 1811 S PERSHING RD, LINCOLN, NE, 68502

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

Financial Breakdown

Contract Ceiling: $10,400

Exercised Options: $10,400

Current Obligation: $10,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0423A0050

IDV Type: BPA

Timeline