DoD awards $14.6M for MQ-9 Reaper RPA Control Suite, with no competition

Contract Overview

Contract Amount: $14,664,370 ($14.7M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-25

End Date: 2026-03-31

Contract Duration: 1,041 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MQ-9 REAPER AFSOC RPA CONTROL SUITE (ARCS) - VEHICLE SPECIFIC MODULE (VSM)

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MQ-9 REAPER AFSOC RPA CONTROL SUITE (ARCS) - VEHICLE SPECIFIC MODULE (VSM) Key points: 1. Contract awarded to General Atomics Aeronautical Systems, Inc. for specialized vehicle modules. 2. Sole-source award raises questions about price discovery and potential for overpayment. 3. Long contract duration of over 1000 days suggests significant integration or development effort. 4. The contract falls under Aircraft Manufacturing, a sector with substantial government investment. 5. Lack of competition limits opportunities for other vendors and potentially stifles innovation. 6. Awarded as a Delivery Order, indicating it's part of a larger existing contract vehicle.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value for money. The cost-plus-fixed-fee structure can incentivize cost overruns if not closely monitored. Comparing this to similar sole-source awards for specialized aerospace components would be necessary to assess if the pricing is reasonable. The absence of competition means taxpayers may not be receiving the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when only one vendor possesses the necessary technology, intellectual property, or capability. The lack of competition means there were no other bidders to drive down prices through a bidding process. This limits the government's ability to explore alternative solutions or secure more favorable terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also reduces the visibility of alternative solutions that might be more cost-effective.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially AFSOC (Air Force Special Operations Command) through enhanced MQ-9 Reaper capabilities. Services delivered include the provision of vehicle-specific modules for the RPA control suite, crucial for operational readiness. The geographic impact is primarily within the United States, likely at Air Force bases where MQ-9 operations are managed or supported. Workforce implications may include specialized technicians and engineers at General Atomics Aeronautical Systems, Inc. and potentially within the Air Force for integration and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed diligently.
Lack of transparency in the procurement process due to sole-source nature.
Potential for vendor lock-in given the specialized nature of the components.

Positive Signals

Award to a known contractor with expertise in RPA systems ensures continuity.
Delivery order suggests it aligns with existing program requirements and infrastructure.
Contract supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities for the MQ-9 Reaper.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on Unmanned Aerial Vehicle (UAV) or Remotely Piloted Aircraft (RPA) systems. The market for defense aerospace, particularly in advanced drone technology, is characterized by high R&D costs and specialized expertise. General Atomics is a key player in this market, known for its MQ-9 Reaper platform. Comparable spending benchmarks would involve looking at other sole-source or competitively awarded contracts for similar specialized avionics, control systems, or mission equipment for advanced military aircraft.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless General Atomics Aeronautical Systems, Inc. voluntarily includes them in its supply chain. The absence of a competitive bidding process also means fewer opportunities for small businesses to demonstrate their capabilities and secure work on this specific program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given it's a sole-source award, scrutiny on cost reasonableness and performance will be critical. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected. Transparency is limited due to the non-competitive nature, but contract performance reports and milestone tracking should be available internally.

Related Government Programs

MQ-9 Reaper Program
Air Force Special Operations Command (AFSOC) Procurement
Unmanned Aircraft Systems (UAS) Procurement
Aerospace Manufacturing Contracts
Defense Intelligence, Surveillance, and Reconnaissance (ISR) Systems

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MQ-9 REAPER AFSOC RPA CONTROL SUITE (ARCS) - VEHICLE SPECIFIC MODULE (VSM)

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 $14.7 million.

What is the period of performance?

Start: 2023-05-25. End: 2026-03-31.

What is the specific technical capability provided by the MQ-9 REAPER AFSOC RPA CONTROL SUITE (ARCS) - VEHICLE SPECIFIC MODULE (VSM)?

The MQ-9 REAPER AFSOC RPA CONTROL SUITE (ARCS) - VEHICLE SPECIFIC MODULE (VSM) likely refers to specialized hardware and software components designed to integrate specific functionalities or upgrades into the existing MQ-9 Reaper platform's control suite. These modules are tailored to meet the unique operational requirements of the Air Force Special Operations Command (AFSOC), potentially enhancing capabilities such as sensor integration, communication systems, electronic warfare, or data processing for specific mission profiles. The 'vehicle-specific' nature implies these modules are custom-built or adapted for the MQ-9 airframe and its associated ground control systems, ensuring seamless operation and performance enhancement.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For specialized components like the MQ-9 Reaper's Vehicle Specific Module (VSM), this could be due to proprietary technology, unique manufacturing processes, existing intellectual property held by General Atomics Aeronautical Systems, Inc., or the need for seamless integration with their existing platform design. The government may have determined that re-competing this specific module would be impractical, excessively costly, or cause unacceptable delays in fielding critical capabilities for AFSOC operations.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost and contractor performance?

A Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts some risk to the government, as the final cost is not fixed upfront. While the fixed fee provides an incentive for the contractor to control costs (as their profit doesn't increase with higher costs), it can also lead to cost overruns if initial estimates are inaccurate or if scope creep occurs. Effective government oversight is crucial to manage allowable costs and ensure the contractor diligently works towards efficient performance to meet the fixed fee.

What is the historical spending trend for MQ-9 Reaper control suite components or similar specialized modules?

Historical spending on MQ-9 Reaper components, including control suites and specialized modules, has been substantial, reflecting the platform's strategic importance and ongoing upgrades. General Atomics Aeronautical Systems, Inc. has been the primary contractor for the MQ-9 platform and its associated systems for many years. Spending trends often show consistent investment in enhancing ISR capabilities, survivability, and data processing. Sole-source awards for specific upgrades or sustainment parts are common in this domain due to the proprietary nature of the technology and the need for deep system integration knowledge. Analyzing past contract values for similar VSMs or control suite upgrades would provide context for the current $14.6 million award.

What are the potential risks associated with relying on a single contractor for critical RPA components?

Relying on a single contractor for critical RPA components like the MQ-9 VSM introduces several risks. Firstly, it creates vendor lock-in, making it difficult and potentially expensive to switch suppliers in the future. Secondly, the lack of competition can lead to higher prices and reduced incentives for innovation or efficiency improvements from the incumbent. Thirdly, it increases supply chain vulnerability; any disruption at the sole-source provider (e.g., financial instability, production issues, geopolitical factors) could directly impact the government's ability to maintain and operate its MQ-9 fleet. Finally, it limits the government's leverage in contract negotiations.

How does this contract contribute to the overall mission effectiveness of the MQ-9 Reaper for AFSOC?

This contract directly enhances the mission effectiveness of the MQ-9 Reaper for AFSOC by providing specialized Vehicle Specific Modules (VSMs) for its control suite. These modules are likely designed to tailor the aircraft's capabilities to the unique and often demanding operational requirements of special operations forces. This could involve improved sensor payloads for intelligence gathering in complex environments, enhanced secure communication links for covert operations, advanced electronic warfare suites for mission success, or optimized data handling for real-time decision-making. By ensuring these critical components are available and integrated, the contract supports AFSOC's ability to conduct persistent ISR, precision strikes, and other sensitive missions effectively.

Industry Classification

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

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

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

Financial Breakdown

Contract Ceiling: $15,111,617

Exercised Options: $15,111,617

Current Obligation: $14,664,370

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $90,970

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