DoD Awards $303.6M Undefinitized Contract to General Atomics for MQ-9B Protector Aircraft
Contract Overview
Contract Amount: $303,566,795 ($303.6M)
Contractor: General Atomics Aeronautical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2026-01-31
Contract Duration: 2,864 days
Daily Burn Rate: $106.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UNDEFINITIZED CONTRACT ACTION FOR FMS UK MQ-9B PROTECTOR
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $303.6 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: UNDEFINITIZED CONTRACT ACTION FOR FMS UK MQ-9B PROTECTOR Key points: 1. Significant investment in advanced drone technology for the Air Force. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2026) suggests a complex, multi-year program. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract is undefinitized, meaning final pricing is not yet established. This carries inherent risk of cost overruns compared to a fully negotiated contract. Benchmarking is difficult without definitive terms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, indicating no competitive bidding process. This limits price discovery and potentially leads to higher costs for taxpayers as the government lacks leverage from competing offers.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially increasing the overall cost of the MQ-9B program.
Public Impact
Enhances US military capabilities with advanced unmanned aerial systems. Supports a key defense contractor and its supply chain. Potential for international sales through Foreign Military Sales (FMS).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undefinitized contract action
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Acquisition of advanced defense technology
- Long-term program support
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Defense spending on advanced unmanned aerial systems like the MQ-9B is a significant area of investment, often characterized by high R&D costs and specialized manufacturing.
Small Business Impact
The data indicates this is a large prime contract awarded to General Atomics Aeronautical Systems, Inc. There is no information provided on subcontracting opportunities for small businesses within this specific award action.
Oversight & Accountability
The undefinitized nature of the contract requires close oversight to ensure fair and reasonable pricing is eventually established. The Department of the Air Force must diligently track costs and milestones to maintain accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Risk of cost growth due to undefinitized contract.
- Lack of competitive pressure may inflate prices.
- Long-term commitment without fully defined scope.
- Potential for schedule delays in definitization.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $303.6 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. UNDEFINITIZED CONTRACT ACTION FOR FMS UK MQ-9B PROTECTOR
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 $303.6 million.
What is the period of performance?
Start: 2018-03-30. End: 2026-01-31.
What is the primary justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense must rigorously negotiate and audit costs to ensure the undefinitized contract action eventually results in a fair and reasonable price, mitigating the risks associated with a lack of competition.
What are the key performance metrics and milestones for this contract, and how will their achievement be verified?
Key performance metrics likely include aircraft delivery schedules, technical specifications adherence, and operational readiness. Verification will involve rigorous testing, acceptance trials, and ongoing performance monitoring by the Air Force contracting and technical teams throughout the contract's duration.
What is the projected total cost of the MQ-9B program once the contract is fully definitized, and how does it compare to similar programs?
The total projected cost is not yet available as the contract is undefinitized. Once definitized, a thorough cost analysis comparing it to other large unmanned aerial system programs, considering capabilities and acquisition quantities, will be necessary to assess value for money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $303,566,795
Exercised Options: $303,566,795
Current Obligation: $303,566,795
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-30
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-19
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