DoD awards $17.2M to General Atomics for MQ-9 Reaper mobile ground control stations

Contract Overview

Contract Amount: $17,229,197 ($17.2M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-07

End Date: 2025-04-16

Contract Duration: 1,195 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MQ-9 FRANCE AGILE REAPER ENTERPRISE SOLUTION (ARES) MOBILE GROUND CONTROL STATIONS (MGCS)

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MQ-9 FRANCE AGILE REAPER ENTERPRISE SOLUTION (ARES) MOBILE GROUND CONTROL STATIONS (MGCS) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is substantial, spanning over three years. 3. Focus on mobile ground control stations indicates a need for operational flexibility. 4. The primary contractor, General Atomics, is a key player in drone manufacturing. 5. This award represents a specific component within the broader MQ-9 Reaper program. 6. The fixed-price contract type shifts some risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and specialized equipment. Without competitive bids, it's difficult to ascertain if the $17.2 million represents optimal value for money. However, the duration and scope suggest a significant investment in critical operational capabilities for the MQ-9 Reaper program. Further analysis would require comparing the unit cost of these mobile ground control stations to similar systems or previous procurements, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to General Atomics Aeronautical Systems, Inc. This means that the Department of the Air Force did not conduct a competitive bidding process. While sole-source awards can be justified for unique capabilities or existing sole-source systems, they typically result in less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of competition limits the government's ability to leverage market forces to secure the best possible price.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The lack of competition means the government accepted the price proposed by the sole contractor without an opportunity to negotiate based on multiple offers.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the MQ-9 Reaper remotely piloted aircraft system. The contract delivers essential mobile ground control stations, enabling flexible and dispersed operations for the Reaper. Geographic impact is national, supporting Air Force readiness across various operational theaters. Workforce implications include continued reliance on specialized personnel for operating and maintaining these advanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Long contract duration could lead to cost overruns if not managed effectively.
Dependence on a single contractor for critical components can create supply chain risks.

Positive Signals

Contract supports a proven and critical intelligence, surveillance, and reconnaissance (ISR) platform (MQ-9 Reaper).
Fixed-price contract type provides cost certainty for the government.
Contracting with the original equipment manufacturer ensures system compatibility and technical expertise.

Sector Analysis

The defense aerospace sector, particularly in unmanned aerial systems (UAS), is characterized by high R&D costs and significant government investment. General Atomics is a dominant player in this market, especially with its Reaper platform. This contract for mobile ground control stations fits within the broader strategy of enhancing the operational flexibility and reach of the MQ-9 program. Spending in this area is driven by evolving military requirements for persistent ISR and strike capabilities.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature and the specialized technology involved, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though the prime contractor may engage them for specific components or services. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract will fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source nature, with less public information available compared to competed contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MQ-9 Reaper Program
Unmanned Aerial Systems (UAS) Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Aerospace Manufacturing

Risk Flags

Sole-source award
Potential for cost overruns
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MQ-9 FRANCE AGILE REAPER ENTERPRISE SOLUTION (ARES) MOBILE GROUND CONTROL STATIONS (MGCS)

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 $17.2 million.

What is the period of performance?

Start: 2022-01-07. End: 2025-04-16.

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

General Atomics Aeronautical Systems, Inc. (GA-ASI) is the original designer and manufacturer of the MQ-9 Reaper remotely piloted aircraft system. They have a long and established track record with the U.S. Air Force and other international partners, having delivered numerous Reaper aircraft and associated support systems over many years. Their expertise is deeply integrated with the platform's development, production, and sustainment. This includes providing ground control stations, training, and logistical support, making them the sole-source provider for many critical components and upgrades due to their proprietary knowledge and established production lines.

How does the pricing of these mobile ground control stations compare to similar systems or previous procurements?

Direct comparison of pricing for these specific mobile ground control stations (MGCS) is difficult without access to detailed cost breakdowns and competitive bid data, especially given this award's sole-source nature. Historically, specialized military hardware procured on a sole-source basis can be more expensive than if procured competitively. To assess value, one would ideally benchmark the per-unit cost against previous GA-ASI contracts for similar MGCS, or against comparable systems offered by other defense contractors if such alternatives exist and have been procured. The $17.2 million award covers multiple units over a multi-year period, making a simple per-unit calculation less informative without knowing the exact quantity and specific configurations.

What are the primary risks associated with this sole-source contract for mobile ground control stations?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive pressure. The government is reliant on General Atomics' proposed pricing without the benefit of market forces driving down costs. Another risk is vendor lock-in; the government may become overly dependent on GA-ASI for future upgrades, maintenance, and spare parts, potentially limiting flexibility and increasing long-term sustainment costs. Furthermore, if GA-ASI faces production delays or quality issues, the government has limited recourse to switch providers, potentially impacting MQ-9 operational readiness.

How effective is the MQ-9 Reaper program in meeting its stated intelligence, surveillance, and reconnaissance (ISR) objectives?

The MQ-9 Reaper program has been highly effective in meeting its stated ISR objectives, becoming a cornerstone of U.S. Air Force and allied intelligence gathering capabilities. Its ability to loiter for extended periods over vast areas, coupled with advanced sensor payloads, provides persistent surveillance crucial for battlefield awareness, target identification, and reconnaissance missions. The platform's modular design allows for adaptation to various mission requirements, including strike capabilities. Its widespread deployment and operational tempo underscore its perceived effectiveness and indispensability in modern asymmetric warfare and strategic ISR operations.

What are the historical spending patterns for MQ-9 Reaper related procurements over the last five years?

Historical spending on the MQ-9 Reaper program and its associated systems has been substantial and relatively consistent over the last five years, reflecting its strategic importance. Annual obligations have typically ranged in the hundreds of millions to over a billion dollars, encompassing aircraft procurement, upgrades, spare parts, training, and ground support equipment. This includes significant investments in enhancing the platform's capabilities, expanding its operational reach, and ensuring its sustainment. The spending reflects a sustained commitment to maintaining and evolving this critical ISR and strike asset within the DoD's portfolio.

What is the strategic importance of mobile ground control stations for the MQ-9 Reaper's operational flexibility?

Mobile ground control stations (MGCS) are strategically vital for enhancing the operational flexibility of the MQ-9 Reaper. Traditional ground control stations are often fixed installations, limiting deployment options and increasing vulnerability. MGCS allow for the operation of MQ-9 aircraft from more dispersed, austere, or forward locations, reducing reliance on fixed infrastructure and enhancing survivability. This mobility enables quicker response times, supports operations in areas lacking established air bases, and facilitates dynamic mission planning. The ability to rapidly reposition control elements is crucial for maintaining persistent ISR coverage and responding effectively to evolving threats in complex operational environments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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

Financial Breakdown

Contract Ceiling: $17,229,197

Exercised Options: $17,229,197

Current Obligation: $17,229,197

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,482,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA868920D2020

IDV Type: IDC

Timeline