DoD awards $68M for Off-Board Sensing Station Flight Demonstration to General Atomics Aeronautical Systems

Contract Overview

Contract Amount: $67,986,112 ($68.0M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-26

End Date: 2025-08-31

Contract Duration: 1,405 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OFF BOARD SENSING STATION FLIGHT DEMONSTRATION

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $68.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: OFF BOARD SENSING STATION FLIGHT DEMONSTRATION Key points: 1. Contract awarded for a flight demonstration of advanced sensing technology. 2. Focus on research and development in physical, engineering, and life sciences. 3. Competition was full and open, indicating a broad market search. 4. Contract type is Cost Plus Fixed Fee, common for R&D projects. 5. Performance period spans over three years, suggesting a complex development cycle. 6. The contract value is substantial for a single R&D demonstration. 7. No small business set-aside, suggesting large prime contractor involvement.

Value Assessment

Rating: fair

The contract value of $67.99 million for a flight demonstration appears significant, but without specific benchmarks for similar R&D efforts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can incentivize contractors to control costs while ensuring they are compensated for their efforts. However, CPFF contracts can sometimes lead to cost overruns if not closely monitored. Benchmarking against other advanced sensing technology demonstrations would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Department of Defense actively sought proposals from all qualified sources. With 6 bidders, this indicates a healthy level of interest and competition for this specific R&D requirement. A competitive environment like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A competitive award process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price and better technical approach than a sole-source award would have. The presence of multiple bidders helps ensure that taxpayer funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive the advanced sensing capabilities. The contract will deliver a flight demonstration of an 'Off-Board Sensing Station', enhancing intelligence, surveillance, and reconnaissance (ISR) capabilities. The geographic impact is primarily within the United States, where the contractor is based and likely where testing and development will occur. Workforce implications include employment for engineers, scientists, technicians, and support staff at General Atomics Aeronautical Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost growth if not managed diligently.
The specific technical risks associated with a novel flight demonstration are not detailed.
Reliance on a single prime contractor for a complex R&D effort can concentrate risk.

Positive Signals

Full and open competition suggests a robust selection process and potential for innovation.
The contract is for a flight demonstration, indicating a move towards tangible, testable technology.
General Atomics Aeronautical Systems is an established defense contractor with experience in aerospace systems.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced sensing and ISR technologies is a critical component of the defense industry, driven by continuous innovation to maintain technological superiority. Spending in this area is often characterized by long development cycles, high R&D costs, and significant government investment. Comparable spending benchmarks would typically involve other large-scale R&D contracts for advanced aerospace or sensor systems.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no specific small business participation goals were mandated. General Atomics Aeronautical Systems is a large prime contractor, suggesting that any small business involvement would likely be through subcontracting opportunities. The absence of a set-aside means that large businesses were eligible to compete and likely dominated the bidding landscape.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will include regular progress reports, milestone reviews, and financial audits to ensure compliance with contract terms and efficient use of funds. Transparency is typically maintained through contract award databases and public reporting, though specific technical details of the demonstration may be sensitive.

Related Government Programs

Advanced ISR Systems
Aerospace Research and Development
Flight Demonstration Programs
Sensor Technology Development

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Performance Risk (Novel Technology Demonstration)
Schedule Delay Risk (Complex R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.0 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. OFF BOARD SENSING STATION FLIGHT DEMONSTRATION

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 $68.0 million.

What is the period of performance?

Start: 2021-10-26. End: 2025-08-31.

What is the specific technological advancement expected from the 'Off-Board Sensing Station' flight demonstration?

The 'Off-Board Sensing Station' flight demonstration aims to showcase an advanced capability for collecting and processing sensor data from a platform separate from the primary intelligence, surveillance, and reconnaissance (ISR) asset. While specific details are often classified or proprietary, such systems typically involve developing and testing novel sensor payloads, data links, and processing algorithms. The goal is likely to enhance the flexibility, range, or quality of ISR data collection by allowing sensors to operate independently or in conjunction with other platforms, potentially improving situational awareness and targeting capabilities for the Department of the Air Force.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of risk and incentive?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development efforts where the scope of work is not fully defined at the outset, and significant uncertainties exist. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to perform the work diligently to earn the fee. However, it places a significant portion of the cost risk on the government, as the final cost can exceed initial estimates if costs escalate. Compared to Fixed-Price contracts, CPFF offers more flexibility for evolving R&D but less cost certainty. Compared to Cost Plus Incentive Fee (CPIF), the fee is fixed, offering less direct incentive for cost savings beyond what's needed to complete the work within budget.

What are the potential risks associated with General Atomics Aeronautical Systems' track record for this type of R&D project?

General Atomics Aeronautical Systems (GA-ASI) has a strong track record in developing and producing advanced unmanned aerial systems (UAS) and related technologies, including sophisticated sensor integration. For an R&D project like the 'Off-Board Sensing Station' flight demonstration, their experience in complex aerospace systems development is a positive indicator. However, potential risks in any R&D endeavor include technical challenges in achieving desired performance, integration issues with new or existing systems, schedule delays due to unforeseen technical hurdles, and potential cost growth inherent in CPFF contracts. While GA-ASI has a history of successful program execution, the inherent uncertainties of cutting-edge R&D mean that risks related to technical feasibility and performance realization always exist.

What historical spending patterns exist for similar 'Off-Board Sensing Station' or advanced ISR R&D programs within the Department of Defense?

Historical spending on advanced ISR R&D programs within the Department of Defense (DoD) is substantial and ongoing, reflecting the critical nature of intelligence gathering for military operations. Programs focused on next-generation sensors, data fusion, autonomous systems, and advanced processing often involve multi-year development cycles and significant funding. While specific figures for 'Off-Board Sensing Station' programs are not publicly detailed, the DoD consistently allocates billions annually to R&D across various defense agencies and branches, including the Air Force. Spending patterns typically show increasing investment in technologies that offer enhanced standoff capabilities, improved data analysis, and network-centric operations. Contracts for flight demonstrations, like this one, represent a crucial phase in validating these technologies before potential large-scale procurement.

How might the success or failure of this demonstration impact future DoD investments in similar sensing technologies?

The success of this 'Off-Board Sensing Station' flight demonstration could significantly influence future DoD investments by validating the technology's feasibility and operational potential. Positive results would likely lead to increased funding for further development, integration into existing or new platforms, and potentially broader procurement. Conversely, significant technical challenges or a failure to meet key performance parameters during the demonstration could lead to program re-evaluation, redirection of funds to alternative technologies, or even cancellation. The data gathered during the demonstration will be critical for program managers to make informed decisions about the technology's future, impacting the allocation of resources within the ISR and advanced sensing domains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA865017S6001

Offers Received: 6

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: $67,986,112

Exercised Options: $67,986,112

Current Obligation: $67,986,112

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $5,764,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline