DoD Awards $101.4M for Canada MQ-9B Hardware to General Atomics
Contract Overview
Contract Amount: $101,397,513 ($101.4M)
Contractor: General Atomics Aeronautical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-12-23
End Date: 2028-11-23
Contract Duration: 1,431 days
Daily Burn Rate: $70.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CANADA MQ-9B HARDWARE
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $101.4 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: CANADA MQ-9B HARDWARE Key points: 1. Significant award for specialized aircraft parts, indicating a key defense partnership. 2. Sole-source award to General Atomics, a known leader in drone technology. 3. Long-term contract (2024-2028) suggests sustained need and potential for follow-on work. 4. Focus on hardware for MQ-9B platform highlights advanced unmanned aerial system capabilities.
Value Assessment
Rating: fair
The contract value of $101.4M is substantial for specialized hardware. Without comparable contract data or a competitive bidding process, assessing pricing fairness is challenging. Benchmarking against similar sole-source procurements for advanced aerospace components would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices as there is no market pressure to reduce costs. The justification for sole-source procurement needs careful review to ensure it is warranted.
Taxpayer Impact: Taxpayer funds are being used for a sole-source procurement, which may result in a higher cost than if competition were allowed. The value of the hardware to Canada's defense capabilities is a key consideration.
Public Impact
Enhances Canada's defense capabilities through advanced MQ-9B drone technology. Supports a critical U.S. ally in defense cooperation and interoperability. Potential for job creation within General Atomics and its supply chain. Represents investment in sophisticated unmanned aerial system hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Lack of public pricing benchmarks.
- Long contract duration may mask cost increases.
Positive Signals
- Supports allied defense capabilities.
- Award to established prime contractor.
- Addresses specific platform needs (MQ-9B).
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized area within aerospace. Spending in this sector is often driven by defense needs and technological advancements in aircraft, particularly unmanned systems.
Small Business Impact
The award went to General Atomics Aeronautical Systems, Inc., a large prime contractor. There is no indication of small business participation in this specific award announcement, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets delivery schedules and quality standards for the MQ-9B hardware. The sole-source nature necessitates scrutiny of cost-plus elements if any, and justification for the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement
- Lack of competitive pricing data
- Potential for cost overruns
- Long contract duration
- Limited small business involvement
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.4 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. CANADA MQ-9B HARDWARE
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 $101.4 million.
What is the period of performance?
Start: 2024-12-23. End: 2028-11-23.
What is the justification for awarding this contract on a sole-source basis, and has an alternatives analysis been performed?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. An alternatives analysis would assess whether other sources could meet the need, even with modifications, to ensure competition was truly not feasible.
How does the unit cost of this MQ-9B hardware compare to similar components procured competitively or through other allied nations?
Benchmarking the unit cost is difficult without access to specific component pricing or data from comparable sole-source contracts. A thorough review would involve comparing pricing against historical data for similar systems, or against industry standards for advanced aerospace components, to identify potential overpricing.
What are the specific performance metrics and delivery milestones for this contract, and what are the penalties for non-compliance?
Detailed performance metrics and delivery milestones are essential for ensuring accountability. The contract should clearly outline expected quality, quantity, and delivery timelines for the MQ-9B hardware. Penalties for non-compliance, such as liquidated damages or termination clauses, are critical for protecting taxpayer interests.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $101,397,513
Exercised Options: $101,397,513
Current Obligation: $101,397,513
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-12-23
Current End Date: 2028-11-23
Potential End Date: 2028-11-23 00:00:00
Last Modified: 2026-01-14
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