State Dept. Buys $27.5M in Vector Drones from Quantum-Systems Inc. for Aircraft Manufacturing

Contract Overview

Contract Amount: $27,527,527 ($27.5M)

Contractor: Quantum-Systems Inc

Awarding Agency: Department of State

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $75.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASE OF VECTOR DRONES SYSTEMS AND UPGRADES.

Place of Performance

Location: MOORPARK, VENTURA County, CALIFORNIA, 93021

State: California Government Spending

Plain-Language Summary

Department of State obligated $27.5 million to QUANTUM-SYSTEMS INC for work described as: PURCHASE OF VECTOR DRONES SYSTEMS AND UPGRADES. Key points: 1. Significant investment in advanced drone technology. 2. Sole-source procurement raises questions about price discovery. 3. Potential risks associated with reliance on a single supplier. 4. Focus on aircraft manufacturing sector indicates strategic importance.

Value Assessment

Rating: questionable

The contract's total value is $27.5M. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar drone systems or potential alternatives in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: Taxpayers may be overpaying due to the lack of competition, as the government did not explore potentially more cost-effective options.

Public Impact

Enhances surveillance and operational capabilities for the Department of State. Supports the domestic aircraft manufacturing industry. Potential for increased efficiency in mission execution through advanced drone technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Acquisition of advanced technology
Support for domestic manufacturing

Sector Analysis

The Department of State's investment in vector drone systems falls within the aircraft manufacturing sector. Spending benchmarks for similar specialized drone procurements are not readily available, but significant investments often warrant competitive processes to ensure value.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Quantum-Systems Inc. is likely a larger entity. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this procurement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable. Accountability for the decision not to compete the contract should be clearly documented.

Related Government Programs

Aircraft Manufacturing
Department of State Contracting
Department of State Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited vendor options for future needs
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.5 million to QUANTUM-SYSTEMS INC. PURCHASE OF VECTOR DRONES SYSTEMS AND UPGRADES.

Who is the contractor on this award?

The obligated recipient is QUANTUM-SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

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

The justification for a sole-source award typically involves unique capabilities, critical urgency, or a lack of available alternatives. Without further details, it's difficult to ascertain the specific reasons. However, sole-source contracts bypass competitive bidding, potentially increasing costs and reducing transparency, making the justification crucial for public trust and fiscal responsibility.

What are the long-term risks associated with procuring specialized drone systems from a single vendor?

Procuring specialized drone systems from a single vendor creates dependency and limits future flexibility. Risks include potential price increases in future upgrades or maintenance, lack of innovation if the vendor stagnates, and vulnerability if the vendor faces financial or operational difficulties. This can also hinder the government's ability to leverage competitive market advancements.

How will the effectiveness of these vector drone systems be measured and validated?

The effectiveness of these systems should be measured against predefined operational requirements and mission objectives outlined in the contract. Key performance indicators (KPIs) related to flight endurance, payload capacity, data acquisition quality, and reliability in various environmental conditions should be tracked. Independent testing and user feedback from the Department of State personnel will be crucial for validation.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM25R0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11943 DISCOVERY CT, MOORPARK, CA, 93021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,527,527

Exercised Options: $27,527,527

Current Obligation: $27,527,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM25D0182

IDV Type: IDC

Timeline