DoD Awards $827M for MQ-9B Ground System to Goodrich, Raising Competition Concerns
Contract Overview
Contract Amount: $8,270,364 ($8.3M)
Contractor: Goodrich Corporation
Awarding Agency: Department of Defense
Start Date: 2025-12-04
End Date: 2028-01-31
Contract Duration: 788 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MQ-9B PED GROUND SYSTEM
Place of Performance
Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886
Plain-Language Summary
Department of Defense obligated $8.3 million to GOODRICH CORPORATION for work described as: MQ-9B PED GROUND SYSTEM Key points: 1. Significant contract value of $827 million for a critical defense system. 2. Sole-source award to Goodrich Corporation limits competitive pricing and innovation. 3. Potential risk associated with limited competition for advanced defense technology. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $827 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced ground support systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for better pricing and potentially overlooks alternative solutions.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers, as there is no pressure on the contractor to offer the most competitive price.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The MQ-9B program's effectiveness could be impacted if the sole-source provider faces unforeseen challenges. Limited competition might stifle innovation in ground support systems for unmanned aerial vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value
Positive Signals
- Critical defense system acquisition
- Long-term contract duration
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often driven by defense needs, and large sole-source awards can be common for specialized, high-tech components.
Small Business Impact
The awardee, Goodrich Corporation, is a large business. There is no indication that small businesses were involved in this specific sole-source contract, potentially missing opportunities for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Goodrich Corporation delivers the MQ-9B PED Ground System effectively and within the firm-fixed-price terms. The sole-source nature necessitates close monitoring of performance and cost justification.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price discovery.
- Potential for cost overruns without competition.
- Dependency on a single supplier.
- Lack of small business participation.
- Limited market research for alternatives.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ma, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to GOODRICH CORPORATION. MQ-9B PED GROUND SYSTEM
Who is the contractor on this award?
The obligated recipient is GOODRICH CORPORATION.
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 $8.3 million.
What is the period of performance?
Start: 2025-12-04. End: 2028-01-31.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can meet the requirement. The Department of Defense would need to provide documentation detailing why competition was not feasible or advantageous for this specific MQ-9B PED Ground System procurement.
How will the government ensure fair pricing without competitive bidding?
Without competition, the government relies on robust cost and price analysis, including reviewing the contractor's cost proposals, historical pricing, and industry benchmarks. Negotiation strategies and stringent contract terms are employed to mitigate the risks associated with sole-source procurements and ensure value for taxpayer money.
What are the long-term implications of relying on a single supplier for this critical system?
Long-term reliance on a single supplier can create vulnerabilities, including potential price increases over time, supply chain disruptions if the supplier faces issues, and a lack of incentive for innovation. It also limits the government's flexibility to adapt to new technologies or alternative solutions that may emerge.
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
Parent Company: RTX Corp
Address: 7 TECHNOLOGY PARK DR, WESTFORD, MA, 01886
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: $23,403,663
Exercised Options: $23,403,663
Current Obligation: $8,270,364
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA869125GB001
IDV Type: BOA
Timeline
Start Date: 2025-12-04
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2026-03-19
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