DoD's $18.7M MQ-9 Reaper Tech Maturation Effort Awarded to General Atomics

Contract Overview

Contract Amount: $18,748,751 ($18.7M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-13

End Date: 2024-05-31

Contract Duration: 1,022 days

Daily Burn Rate: $18.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MQ-9 REAPER EXPEDITIONARY LINE OF SIGHT TECHNICAL MATURATION EFFORT

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MQ-9 REAPER EXPEDITIONARY LINE OF SIGHT TECHNICAL MATURATION EFFORT Key points: 1. The contract focuses on technical maturation for the MQ-9 Reaper, a key unmanned aerial vehicle. 2. General Atomics Aeronautical Systems, Inc. is the sole awardee, indicating a lack of competition. 3. The Cost Plus Fixed Fee contract type may pose risks if cost overruns occur. 4. This spending falls within the Aircraft Manufacturing sector, which is critical for defense capabilities.

Value Assessment

Rating: fair

The contract value of $18.7M for technical maturation is difficult to assess without specific deliverables. However, the Cost Plus Fixed Fee structure can lead to higher costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $18.7M contract means taxpayers may not be receiving the best possible price for the services rendered.

Public Impact

Enhances capabilities of the MQ-9 Reaper, a vital intelligence, surveillance, and reconnaissance (ISR) platform. Supports ongoing modernization efforts within the Air Force's unmanned aerial systems fleet. Potential for improved operational effectiveness and mission success in future deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type can incentivize cost overruns.
Lack of transparency in the procurement process.

Positive Signals

Focus on technical maturation of a critical defense asset.
Supports ongoing modernization of unmanned aerial systems.
Awardee is a known producer of MQ-9 systems.

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, specifically for unmanned aerial vehicles. Spending in this sector is crucial for maintaining technological superiority in defense.

Small Business Impact

The contract was awarded directly to General Atomics Aeronautical Systems, Inc., with no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective use of funds. Further oversight is needed to confirm the necessity of a non-competitive award.

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
Potential for cost overruns
Lack of competitive pricing pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MQ-9 REAPER EXPEDITIONARY LINE OF SIGHT TECHNICAL MATURATION EFFORT

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 $18.7 million.

What is the period of performance?

Start: 2021-08-13. End: 2024-05-31.

What specific technical advancements are being pursued under this maturation effort, and how do they align with current and future MQ-9 operational requirements?

The specific technical advancements are not detailed in the award notice. However, 'technical maturation' generally implies improving existing capabilities, reliability, or integrating new technologies to enhance the MQ-9's performance. This likely aligns with the Air Force's need for persistent ISR and strike capabilities, potentially focusing on areas like sensor upgrades, communication systems, or airframe enhancements to extend its operational lifespan and effectiveness.

Given the sole-source award, what justification was provided to ensure this was the most cost-effective approach for the government?

Sole-source awards typically require a justification and approval (J&A) document outlining why full and open competition is not feasible or advantageous. This could be due to the unique capabilities of the contractor, the need for compatibility with existing systems, or urgent requirements. Without access to the J&A, it's difficult to assess the cost-effectiveness, but the government should have determined that General Atomics was the only source capable of meeting the specific technical maturation needs within the required timeframe.

How will the effectiveness of this $18.7M investment be measured, and what are the key performance indicators for the technical maturation?

The effectiveness of this investment will likely be measured by the successful completion of defined technical maturation milestones outlined in the contract's statement of work. Key performance indicators could include demonstrated improvements in system reliability, successful integration of new technologies, achievement of specific performance metrics (e.g., flight endurance, sensor resolution), and adherence to the fixed-fee portion of the contract. The government will need to actively monitor progress against these indicators.

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

Financial Breakdown

Contract Ceiling: $18,748,751

Exercised Options: $18,748,751

Current Obligation: $18,748,751

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $296,347

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