DoD awards $31.3M for MQ-9 Reaper Automatic Takeoff and Landing Capability to General Atomics

Contract Overview

Contract Amount: $31,278,555 ($31.3M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-02

End Date: 2025-03-31

Contract Duration: 1,733 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MQ-9 REAPER AUTOMATIC TAKEOFF AND LANDING CAPABILITY (ATLC)

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MQ-9 REAPER AUTOMATIC TAKEOFF AND LANDING CAPABILITY (ATLC) Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. The contract value represents a significant investment in enhancing MQ-9 Reaper operational flexibility. 3. Performance period extends over 5 years, indicating a long-term need for this capability. 4. The sole contractor, General Atomics, is the original manufacturer of the MQ-9 Reaper, suggesting specialized knowledge. 5. The absence of competition may limit opportunities for cost savings and innovation from other vendors. 6. This award focuses on a specific technological upgrade rather than broad platform acquisition.

Value Assessment

Rating: fair

Benchmarking the value for this specific Automatic Takeoff and Landing Capability (ATLC) is challenging due to the sole-source nature of the award. Without competitive bids, it's difficult to ascertain if the $31.3 million price reflects optimal market value. However, given General Atomics' established role as the primary manufacturer of the MQ-9 Reaper, their pricing may reflect unique development costs and proprietary technology. Further analysis would require access to internal cost breakdowns or comparisons with similar, albeit rare, sole-source technology integration contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, General Atomics Aeronautical Systems, Inc., was solicited. This approach is typically employed when a unique product or service is required, and only one responsible source can provide it. The lack of competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple providers. The justification for sole-sourcing should clearly articulate why other qualified sources could not meet the requirement.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for this capability, as there was no market pressure to reduce costs. This could lead to a higher overall expenditure for the program.

Public Impact

The primary beneficiaries are the U.S. Air Force operators of the MQ-9 Reaper, who will gain enhanced operational flexibility and reduced crew workload. The service delivered is a critical technological upgrade to an existing unmanned aerial system, improving its operational effectiveness. The geographic impact is national, supporting Air Force operations across various theaters where MQ-9s are deployed. Workforce implications include potential training needs for aircrew and maintenance personnel on the new ATLC system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may stifle innovation by excluding other potential technology providers.
Dependence on a single contractor for critical upgrades can create supply chain risks.

Positive Signals

Award to the original equipment manufacturer ensures deep technical integration and understanding of the MQ-9 platform.
The ATLC capability is expected to enhance MQ-9 operational flexibility and reduce crew workload.
The contract is for a specific, defined capability upgrade, suggesting focused program management.

Sector Analysis

The Unmanned Aerial Systems (UAS) market, particularly for military applications like the MQ-9 Reaper, is a specialized segment within the broader aerospace and defense industry. This sector is characterized by high R&D investment, long development cycles, and significant government procurement. General Atomics Aeronautical Systems, Inc. is a dominant player in this specific niche, being the primary developer and manufacturer of the MQ-9 platform. Spending in this area is driven by the need for advanced ISR (Intelligence, Surveillance, and Reconnaissance) and strike capabilities, with ongoing efforts to improve autonomy and operational efficiency.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. General Atomics Aeronautical Systems, Inc. is a large business. There is no explicit information provided regarding subcontracting plans to small businesses within this specific award. The impact on the small business ecosystem is likely minimal for this particular sole-source contract, though large prime contractors often have broader subcontracting goals across their portfolio.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The contract is a Delivery Order under a larger Basic Ordering Agreement or Indefinite Delivery/Indefinite Quantity contract, which typically have established oversight mechanisms. Transparency is limited by the sole-source nature, but contract modifications, performance reports, and payment milestones would be subject to internal review. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MQ-9 Reaper Sustainment Contracts
Unmanned Aerial Vehicle (UAV) Development Programs
Aerospace Manufacturing and Defense Procurement
Avionics and Control Systems Integration

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Potential for cost overruns due to lack of competitive benchmarking.
Dependence on a single contractor for critical technology integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MQ-9 REAPER AUTOMATIC TAKEOFF AND LANDING CAPABILITY (ATLC)

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 $31.3 million.

What is the period of performance?

Start: 2020-07-02. End: 2025-03-31.

What is the track record of General Atomics Aeronautical Systems, Inc. with the MQ-9 Reaper program?

General Atomics Aeronautical Systems, Inc. (GA-ASI) has an extensive and well-established track record as the prime contractor and developer of the MQ-9 Reaper Unmanned Aerial System (UAS). They have been responsible for the initial design, development, production, and sustainment of the platform for many years. Their history includes numerous contract awards for the aircraft itself, associated support equipment, training systems, and various technological upgrades. GA-ASI is widely recognized as the original equipment manufacturer (OEM) and holds significant intellectual property related to the MQ-9. Their performance has generally been viewed as meeting the Air Force's requirements for this critical intelligence, surveillance, and reconnaissance (ISR) and strike platform, though like any large defense program, it has faced scrutiny regarding cost and schedule over its lifecycle.

How does the $31.3 million contract value compare to other investments in MQ-9 Reaper upgrades?

The $31.3 million awarded for the MQ-9 REAPER AUTOMATIC TAKEOFF AND LANDING CAPABILITY (ATLC) represents a significant, but not unprecedented, investment for a specific technological enhancement. While exact comparable figures for ATLC systems are difficult to isolate due to proprietary data and the sole-source nature of this award, the MQ-9 program itself has seen multi-billion dollar appropriations over its life for aircraft procurement, sustainment, and numerous system modifications. Investments in areas like enhanced sensors, communication systems, or weapon integration have also commanded tens of millions of dollars. This ATLC award is consistent with the trend of investing in capabilities that improve operational efficiency, reduce crew workload, and expand the mission envelope of the MQ-9 platform, reflecting the ongoing evolution of unmanned systems.

What are the primary risks associated with this sole-source contract for the ATLC capability?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, General Atomics Aeronautical Systems, Inc. may not have had the same incentive to offer the most cost-effective solution. This can lead to taxpayers potentially overpaying for the ATLC capability. Another risk is the potential for a lack of innovation; a competitive environment often spurs creative solutions and technological advancements that might not emerge when only one company is involved. Furthermore, sole-sourcing can create a dependency on a single supplier, which can pose risks related to long-term availability, support, and potential future price increases if the contractor faces challenges or decides to alter its pricing strategy.

How effective is the MQ-9 Reaper platform in its current role, and how does this upgrade contribute to its effectiveness?

The MQ-9 Reaper platform has proven highly effective as a persistent intelligence, surveillance, and reconnaissance (ISR) asset and as a medium-altitude, long-endurance (MALE) strike platform for the U.S. Air Force and other users. It has been instrumental in providing real-time situational awareness and precision strike capabilities in various operational theaters. The Automatic Takeoff and Landing Capability (ATLC) is designed to enhance the platform's effectiveness by increasing operational flexibility and reducing the workload on ground crews and pilots. ATLC allows the MQ-9 to operate from shorter runways and in more challenging conditions without direct pilot intervention during these critical phases of flight. This contributes to increased sortie generation rates, improved safety, and enables the aircraft to be deployed more readily, thereby bolstering its overall mission readiness and effectiveness.

What are the historical spending patterns for the MQ-9 Reaper program and related technologies?

Historical spending on the MQ-9 Reaper program has been substantial, reflecting its status as a cornerstone of U.S. unmanned aerial system capabilities. Billions of dollars have been allocated over the years for the procurement of aircraft, sensors, support equipment, training, and sustainment. Spending has evolved from initial development and acquisition phases to a focus on modernization and capability enhancements. Investments in technologies like the ATLC are part of this ongoing modernization effort, aiming to improve operational efficiency and expand the platform's utility. While specific figures for ATLC development might be embedded within broader R&D or modification contracts, the overall trend shows consistent, significant government investment in maintaining and advancing the MQ-9's operational relevance in a dynamic threat environment.

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

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,278,555

Exercised Options: $31,278,555

Current Obligation: $31,278,555

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,573,932

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862017D2000

IDV Type: IDC

Timeline