DoD's $126M Aircraft Contract with General Atomics: Full and Open Competition After Exclusion of Sources

Contract Overview

Contract Amount: $126,026,357 ($126.0M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-01

End Date: 2011-12-30

Contract Duration: 2,738 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $126.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: Key points: 1. Significant contract value of $126 million awarded to General Atomics Aeronautical Systems, Inc. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific justification for excluding certain bidders. 3. Contract type is 'Definitive Contract' with a 'Firm Fixed Price' pricing structure. 4. The contract duration was substantial at 2738 days, spanning from 2004 to 2011. 5. No small business participation was noted in this contract.

Value Assessment

Rating: fair

The contract was awarded under a firm fixed price structure, which typically offers good value certainty. However, the 'Exclusion of Sources' aspect of the competition raises questions about whether the best possible price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'Full and Open Competition After Exclusion of Sources'. This implies that while the competition was intended to be open, specific sources were deliberately excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The impact on taxpayers is uncertain due to the limited competition. While a fixed price was established, the exclusion of sources might have prevented a more competitive bidding process, potentially leading to a higher overall cost.

Public Impact

Taxpayers funded a significant aircraft manufacturing contract over a seven-year period. The specific reasons for excluding sources in the competition are not detailed, impacting transparency. The contract supported the Department of the Air Force's aviation capabilities. General Atomics Aeronautical Systems, Inc. is a major defense contractor in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources
Lack of transparency regarding source exclusion
Long contract duration could lead to cost overruns if not managed well

Positive Signals

Firm Fixed Price contract provides cost certainty
Awarded to a specialized aircraft manufacturer

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industry. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.

Small Business Impact

This contract did not involve small business participation. The focus was on a large prime contractor, General Atomics Aeronautical Systems, Inc., for a specialized defense manufacturing requirement.

Oversight & Accountability

The 'Exclusion of Sources' clause warrants further oversight to ensure the justification was sound and that taxpayer funds were used efficiently. The long duration of the contract also necessitates ongoing monitoring for performance and cost control.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for inflated costs due to limited competition
Lack of transparency regarding source exclusion criteria
Long contract duration increases risk of unforeseen issues
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $126.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $126.0 million.

What is the period of performance?

Start: 2004-07-01. End: 2011-12-30.

What was the specific justification for excluding sources in this 'Full and Open Competition'?

The data does not specify the exact justification for excluding sources. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or national security concerns that limit the pool of eligible contractors. A thorough review would be needed to validate the necessity and appropriateness of these exclusions.

How did the exclusion of sources potentially impact the final price paid by the government?

Excluding potential bidders generally reduces competition. If the excluded sources could have offered competitive pricing or superior solutions, their absence likely led to a higher price than might have been achieved in a fully open market. The firm fixed price mitigates some risk, but the baseline price could have been inflated.

What is the long-term effectiveness of the aircraft produced under this contract for the Air Force?

The provided data focuses on the contract's financial and competitive aspects, not the operational effectiveness of the aircraft. Assessing long-term effectiveness would require analyzing the aircraft's performance, reliability, mission success rates, and overall contribution to Air Force capabilities over its service life.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics

Address: 16761 VIA DEL CAMPO COURT, SAN DIEGO, CA, 92127

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline