DoD's $8M Big Safari contract awarded to General Atomics for support services shows potential value concerns

Contract Overview

Contract Amount: $8,065,792 ($8.1M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2025-02-28

Contract Duration: 364 days

Daily Burn Rate: $22.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: BIG SAFARI Key points: 1. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The short duration suggests a need for ongoing, potentially higher-cost, contract renewals. 4. Performance context is limited due to the 'All Other Support Services' classification. 5. The contract's sector positioning within 'Other' makes direct benchmarking difficult.

Value Assessment

Rating: questionable

The $8.07 million contract value for a one-year period, classified under 'All Other Support Services,' presents a moderate expenditure. Without specific deliverables or performance metrics, it is challenging to benchmark its value effectively against similar contracts. The cost-plus-fixed-fee (CPFF) pricing arrangement, while offering flexibility, can sometimes lead to higher costs if not meticulously managed, as the contractor is reimbursed for allowable costs plus a fixed fee. Further analysis of the contractor's historical performance and the specific services rendered would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. Sole-source awards typically occur when only one responsible source can provide the required supplies or services. This can be due to unique capabilities, urgent needs, or specific program requirements. The absence of multiple bidders means that the government did not benefit from a competitive bidding process, which could potentially lead to less favorable pricing and terms.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution, as there was no pressure from competing offers to drive down prices.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving support services. The contract supports unspecified 'All Other Support Services,' impacting various operational aspects. The geographic impact is concentrated in California, where the contractor is located. Workforce implications are likely within the contractor's organization, potentially involving specialized personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may incentivize cost escalation.
Sole-source award limits price negotiation and potential savings.
Vague service description hinders performance evaluation and value assessment.
Short contract duration suggests potential for recurring, uncompetitive renewals.

Positive Signals

Contract awarded to a known entity (General Atomics Aeronautical Systems, Inc.).
Fixed fee component provides some cost predictability for the fee portion.
Contract duration is clearly defined, allowing for planning.

Sector Analysis

The 'All Other Support Services' category is broad and encompasses a wide range of activities that do not fit into more specific service classifications. This contract's value of approximately $8 million falls within the mid-range for support service contracts. Without more specific details on the nature of the support, it's difficult to benchmark against industry-specific spending. However, the defense sector frequently utilizes such contracts for specialized or unique support requirements that may not be readily available through competitive means.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans for small businesses. Consequently, this contract is unlikely to directly benefit the small business ecosystem through set-asides or mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, there may be specific justification documentation required and reviewed by oversight bodies. Transparency is limited by the lack of public detail regarding the specific services and the justification for the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Support Services
Aerospace Support Contracts
Sole-Source Service Agreements
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award limits competition.
Cost-plus-fixed-fee structure may lead to cost overruns.
Vague service description hinders performance assessment.
Short contract duration requires frequent re-procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. BIG SAFARI

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 $8.1 million.

What is the period of performance?

Start: 2024-03-01. End: 2025-02-28.

What specific services are being provided under the 'BIG SAFARI' contract?

The provided data indicates the contract is for 'All Other Support Services' under the 'BIG SAFARI' program. The 'BIG SAFARI' program itself is an Air Force initiative focused on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities. However, the specific nature of the support services rendered under this particular contract (award number 561990) is not detailed in the provided data. These services could range from technical support, maintenance, logistics, program management, or specialized operational assistance related to ISR assets. Without further documentation or a more detailed contract description, the exact services remain unspecified.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED' and lists the contract type as 'sole-source'. While the specific justification is not provided, common reasons for sole-source awards in defense contracting include: unique technical capabilities possessed by only one contractor, urgent and compelling needs where competition is not feasible, or when the services are a continuation of a previous effort where only one contractor has the necessary knowledge and infrastructure. For the 'BIG SAFARI' program, it's plausible that General Atomics Aeronautical Systems, Inc. possesses unique expertise or proprietary technology essential for the specific support required, making competition impractical or detrimental to program objectives.

How does the cost-plus-fixed-fee (CPFF) structure impact the overall cost and risk for the government?

The Cost-Plus-Fixed-Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as the final contract price is not fixed upfront and can increase if allowable costs are higher than anticipated. However, the fixed fee provides some predictability regarding the contractor's profit margin. For the government, effective oversight and robust cost accounting standards are crucial to manage potential cost overruns and ensure that only legitimate, allowable costs are reimbursed. The CPFF structure is often used when the scope of work is not precisely defined or when technical uncertainties exist, making it difficult to establish a firm fixed price.

What is the historical spending pattern for 'BIG SAFARI' or similar support services within the Department of the Air Force?

The provided data pertains to a single contract award valued at approximately $8.07 million for a 364-day period. To establish a historical spending pattern for 'BIG SAFARI' or similar support services within the Department of the Air Force, a broader dataset encompassing multiple contracts over several fiscal years would be necessary. This would involve analyzing trends in contract values, types of services procured, competition levels, and the number of awards made under the 'BIG SAFARI' program or related support service categories. Without access to such historical data, it is impossible to identify specific spending patterns, growth trends, or significant shifts in procurement strategies for these types of services.

What are the potential risks associated with a short contract duration of 364 days?

A contract duration of 364 days, while common for initial awards or specific project phases, can introduce several risks. Firstly, it necessitates frequent re-solicitation and re-award processes, which consume administrative resources and time. Secondly, if the services are critical and ongoing, the short duration can create a sense of instability for the contractor and potentially lead to higher pricing in subsequent contract renewals to account for the uncertainty and administrative burden. Thirdly, it may discourage long-term investment in process improvements or specialized equipment by the contractor, as the return on investment might be limited by the contract's short lifespan. Finally, it increases the risk of contract gaps if the re-procurement process is delayed.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: $8,482,421

Exercised Options: $8,482,421

Current Obligation: $8,065,792

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $65,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4021

IDV Type: BOA

Timeline