DoD's $34.8M GCS Production Contract Awarded to General Atomics Aeronautical Systems

Contract Overview

Contract Amount: $34,781,585 ($34.8M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-28

End Date: 2019-04-30

Contract Duration: 763 days

Daily Burn Rate: $45.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLOCK 30 FY16 GCS PRODUCTION UCA

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: BLOCK 30 FY16 GCS PRODUCTION UCA Key points: 1. Contract awarded for GCS Production, a key component in defense systems. 2. Sole-source award to General Atomics Aeronautical Systems, Inc., a major defense contractor. 3. Potential risk associated with lack of competition for this significant contract. 4. Spending falls within the Aircraft Manufacturing sector, with benchmarks to be assessed.

Value Assessment

Rating: fair

The contract value of $34.8M for a 763-day duration appears reasonable for specialized aircraft manufacturing. However, without competitive bidding, it's difficult to definitively assess if this represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competed contract.

Taxpayer Impact: The lack of competition for this $34.8M contract raises concerns about potential overspending and reduced value for taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The contract supports the production of critical defense systems, impacting national security. Reliance on a single supplier could create long-term dependency and potential supply chain vulnerabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing due to lack of competition
Limited transparency in price negotiation

Positive Signals

Supports critical defense system production
Awarded to established defense contractor

Sector Analysis

This contract falls under the Aircraft Manufacturing sector (NAICS 336411). Spending in this sector can vary widely based on technological advancements and defense needs. Benchmarking against similar sole-source contracts for specialized aircraft components is crucial.

Small Business Impact

The contract was awarded to General Atomics Aeronautical Systems, Inc., a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Defense awarded this contract. Oversight would typically involve contract administration by the Defense Contract Management Agency to ensure compliance with terms and conditions, though the sole-source nature limits oversight on price competitiveness.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for cost overruns
Limited transparency in pricing
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. BLOCK 30 FY16 GCS PRODUCTION UCA

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $34.8 million.

What is the period of performance?

Start: 2017-03-28. End: 2019-04-30.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically must demonstrate that only one responsible source can provide the required supplies or services. Without this justification, it's difficult to assess if the government received fair value or if opportunities for cost savings through competition were missed.

How does the per-unit cost of this contract compare to similar GCS production contracts, if available?

Benchmarking the per-unit cost against historical or similar contracts is essential for evaluating value. If comparable sole-source contracts exist, they can provide a reference point. However, the ideal comparison would be against competitively awarded contracts, which typically yield lower prices. The absence of such data makes a definitive value assessment challenging.

What are the long-term implications of relying on a sole-source provider for this critical defense component?

Long-term sole-source reliance can lead to vendor lock-in, reduced innovation, and potential price escalations over time. It also limits the government's flexibility to adapt to new technologies or market changes. Agencies should actively seek opportunities to introduce competition or develop alternative sources to mitigate these risks.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics

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: $34,842,830

Exercised Options: $34,842,830

Current Obligation: $34,781,585

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $8,088,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862015G4040

IDV Type: BOA

Timeline