DoD awards $23.5M for Laser Small Diameter Bombs to General Atomics, facing limited competition

Contract Overview

Contract Amount: $23,536,752 ($23.5M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-11-30

End Date: 2024-09-30

Contract Duration: 2,496 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LASER SMALL DIAMETER BOMB

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: LASER SMALL DIAMETER BOMB Key points: 1. Significant contract value of $23.5M for advanced munitions. 2. General Atomics is the sole provider, raising competition concerns. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. The sector is Aircraft Manufacturing, critical for defense capabilities.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar advanced munitions contracts is difficult due to the specialized nature of this weapon system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to General Atomics. This lack of competition limits price discovery and potentially increases the cost to the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these specialized munitions.

Public Impact

Enhances Air Force's precision strike capabilities. Supports advanced aerospace manufacturing in California. Potential for future sole-source awards if no other vendors emerge.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type.
Long contract duration (2017-2024).

Positive Signals

Provides critical defense capability.
Supports a key defense contractor.

Sector Analysis

The Aircraft Manufacturing sector is vital for national defense, producing sophisticated aerial platforms and weaponry. Spending benchmarks for specialized munitions like laser-guided bombs are highly variable and often proprietary.

Small Business Impact

This contract was not awarded to small businesses, as indicated by the prime contractor's size and the nature of the award. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. The Department of the Air Force should monitor contract performance diligently.

Related Government Programs

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

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. LASER SMALL DIAMETER BOMB

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 $23.5 million.

What is the period of performance?

Start: 2017-11-30. End: 2024-09-30.

What is the projected unit cost for the Laser Small Diameter Bomb, and how does it compare to similar munitions?

The provided data does not specify the projected unit cost for the Laser Small Diameter Bomb. Due to the sole-source nature of this contract and the specialized technology involved, direct cost comparisons with similar munitions are challenging without access to proprietary pricing information or detailed cost breakdowns.

What are the risks associated with a sole-source award for advanced munitions like the Laser Small Diameter Bomb?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. It also creates a dependency on a single supplier, potentially impacting long-term availability and supply chain resilience.

How effective is the Laser Small Diameter Bomb in achieving its intended mission objectives, and what is the evidence supporting its performance?

The effectiveness of the Laser Small Diameter Bomb is presumed to be high given its development and procurement by the Department of the Air Force. However, specific performance data, mission success rates, and independent assessments are not publicly available in this dataset.

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: $28,064,408

Exercised Options: $26,980,545

Current Obligation: $23,536,752

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $5,483,791

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