DoD's $234M MQ-9 Block 5 Drone Production Contract Awarded to General Atomics
Contract Overview
Contract Amount: $234,057,033 ($234.1M)
Contractor: General Atomics Aeronautical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-11-05
End Date: 2022-07-30
Contract Duration: 1,363 days
Daily Burn Rate: $171.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT 1C, MQ-9, BLOCK 5 FY18 PRODUCTION
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $234.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: ACAT 1C, MQ-9, BLOCK 5 FY18 PRODUCTION Key points: 1. Significant investment in advanced drone technology. 2. Sole-source award raises questions about competition and price. 3. Long-term contract duration (1363 days) suggests sustained need. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $234M for MQ-9 Block 5 production appears substantial. Benchmarking against similar advanced drone procurements would be necessary to assess if this price is competitive, especially given the sole-source nature.
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 may result in a higher cost to taxpayers than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these advanced drones.
Public Impact
Enhances military surveillance and strike capabilities. Supports advanced aerospace manufacturing jobs in California. Potential for future upgrades and sustainment contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Acquisition of critical defense asset
- Supports domestic manufacturing
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for similar advanced unmanned aerial vehicle (UAV) production contracts would be relevant for comparison.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), suggesting established oversight processes. However, the sole-source nature warrants scrutiny to ensure fair pricing and value.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may not reflect evolving technology needs.
- No small business participation noted.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $234.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. ACAT 1C, MQ-9, BLOCK 5 FY18 PRODUCTION
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 $234.1 million.
What is the period of performance?
Start: 2018-11-05. End: 2022-07-30.
What is the justification for the sole-source award of the MQ-9 Block 5 production contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. For the MQ-9 Block 5, it's likely related to General Atomics' established expertise and existing platform integration within the DoD's operational framework, making competition difficult or impractical.
How does the unit cost of the MQ-9 Block 5 compare to previous blocks or similar competitor systems?
Without specific unit cost data or access to competitor pricing, a direct comparison is challenging. However, the firm fixed-price nature of this contract suggests a defined cost structure. Analysis would require benchmarking against historical MQ-9 procurement data and publicly available information on comparable unmanned systems to assess cost-effectiveness.
What are the long-term implications of this sole-source award on future drone development and acquisition?
Sole-source awards can stifle innovation by reducing competitive pressure on incumbent contractors. This could lead to higher prices in the future and potentially slower development cycles if alternative technologies are not explored. It emphasizes the need for robust market research and strategic planning to foster competition in future procurements.
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
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: $234,096,815
Exercised Options: $234,096,815
Current Obligation: $234,057,033
Actual Outlays: $23,510,133
Subaward Activity
Number of Subawards: 112
Total Subaward Amount: $52,964,843
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
Start Date: 2018-11-05
Current End Date: 2022-07-30
Potential End Date: 2022-07-30 00:00:00
Last Modified: 2024-05-21
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