DoD's $52M MQ-9 Tech Maturation Effort Awarded Sole-Source to General Atomics
Contract Overview
Contract Amount: $51,978,037 ($52.0M)
Contractor: General Atomics Aeronautical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-03-18
End Date: 2020-09-30
Contract Duration: 1,657 days
Daily Burn Rate: $31.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MQ-9 TECHNOLOGY MATURATION EFFORT
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $52.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MQ-9 TECHNOLOGY MATURATION EFFORT Key points: 1. Significant investment in advanced drone technology. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1657 days) suggests complex development. 4. Focus on aircraft manufacturing sector, a key area for defense modernization.
Value Assessment
Rating: questionable
The contract value of $51.98M for a technology maturation effort is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar R&D contracts in the aerospace sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Atomics Aeronautical Systems, Inc. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $52M contract could lead to suboptimal pricing, impacting the efficient use of taxpayer funds.
Public Impact
Enhances U.S. military's unmanned aerial vehicle capabilities. Supports advanced defense technology development and innovation. Potential for future drone system upgrades and operational improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Sole-source award justification unclear
Positive Signals
- Investment in critical defense technology
- Supports advanced manufacturing capabilities
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for technology maturation in this area can vary widely based on complexity and innovation.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this large sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure proper justification and that the government received the best possible value. Oversight should focus on contract performance and adherence to the cost-plus-fixed-fee structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns under CPFF
- Long contract duration may indicate development challenges
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MQ-9 TECHNOLOGY MATURATION EFFORT
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 $52.0 million.
What is the period of performance?
Start: 2016-03-18. End: 2020-09-30.
What was the justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED.' A sole-source award typically requires a strong justification, such as a unique capability or urgent need. Without further documentation, it's unclear if alternatives were explored or if specific circumstances necessitated bypassing the competitive process, which could impact overall value for money.
How does the 'cost plus fixed fee' structure mitigate risks for this technology maturation effort?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover allowable costs plus a fixed fee representing profit. For technology maturation, where development paths can be uncertain, CPFF can incentivize innovation by covering R&D expenses. However, it also shifts some risk to the government if costs escalate beyond initial projections, making robust oversight crucial.
What is the expected impact of this technology maturation on the MQ-9 platform's future effectiveness?
This effort aims to mature technologies for the MQ-9 platform, suggesting improvements in its capabilities, such as enhanced sensors, communication systems, or operational flexibility. Successful maturation could lead to a more effective and versatile unmanned aerial system, potentially increasing its mission success rates and expanding its operational roles in future conflicts.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14200 KIRKHAM WAY, POWAY, CA, 92064
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,911,765
Exercised Options: $66,911,765
Current Obligation: $51,978,037
Actual Outlays: $2,102,454
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,055,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-03-18
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-06-02
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