DoD's $71M GCS Retrofit Contract Awarded to General Atomics Aeronautical Systems, Inc

Contract Overview

Contract Amount: $70,922,679 ($70.9M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-21

End Date: 2024-07-18

Contract Duration: 2,127 days

Daily Burn Rate: $33.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FY18 BLK 30 GCS RETROFIT

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $70.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: FY18 BLK 30 GCS RETROFIT Key points: 1. The contract is for Aircraft Manufacturing, specifically a GCS Retrofit. 2. General Atomics Aeronautical Systems, Inc. is the sole awardee. 3. The contract duration is substantial at 2127 days. 4. The award was not competed, raising questions about price discovery.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without a competitive bidding process, it's difficult to assess if the $70.9M price is reasonable compared to market rates for similar retrofits.

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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the GCS retrofit services.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the contract. The long duration of the contract could indicate a critical or complex need for the Air Force. The specific nature of the 'GCS Retrofit' is unclear to the public, limiting understanding of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Awarded to a known defense contractor
Supports Air Force operations

Sector Analysis

This contract falls under the Aircraft Manufacturing sector. 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 was awarded to a large business, General Atomics Aeronautical Systems, Inc. There is no indication of small business participation in this specific award.

Oversight & Accountability

Given the sole-source nature and cost-plus contract type, robust oversight from the Department of the Air Force is crucial to ensure cost control and prevent potential waste or fraud.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Fixed Fee contract type increases risk of overspending.
Long contract duration (2127 days) requires sustained oversight.
Lack of transparency regarding specific retrofit details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. FY18 BLK 30 GCS RETROFIT

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 $70.9 million.

What is the period of performance?

Start: 2018-09-21. End: 2024-07-18.

What specific components or systems does the GCS Retrofit entail, and what is the justification for a sole-source award?

The specific components of the GCS Retrofit are not detailed in the provided data. A sole-source award typically requires justification based on unique capabilities, urgent need, or lack of viable alternatives. Without this justification, it's difficult to ascertain the necessity of awarding to a single vendor without competition.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this type of service?

Cost Plus Fixed Fee contracts carry the risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government pays more. This risk is amplified without competitive pressure to ensure efficient cost management and accurate initial pricing.

How will the effectiveness of the GCS Retrofit be measured given the lack of competitive benchmarks?

Effectiveness measurement will rely heavily on the performance metrics and deliverables defined within the contract itself. The Air Force must establish clear, objective criteria for success and diligently monitor the contractor's progress against these standards. Independent verification and validation will be key in the absence of competitive comparisons.

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: $104,489,962

Exercised Options: $70,922,679

Current Obligation: $70,922,679

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $13,404,463

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