DoD Awards $41M for Air Transport Services, Highlighting Long-Term Contract and Full Competition
Contract Overview
Contract Amount: $41,038,058 ($41.0M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2018-11-07
End Date: 2028-12-31
Contract Duration: 3,707 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF HOSTED PAYLOAD SOLUTIONS ARGOS MISSION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $41.0 million to GENERAL ATOMICS for work described as: IGF::OT::IGF HOSTED PAYLOAD SOLUTIONS ARGOS MISSION Key points: 1. Contract Value: $41.04 million over approximately 10 years. 2. Competition: Awarded under full and open competition. 3. Risk: Long-term nature of the contract may present evolving risk. 4. Sector: Primarily transportation and logistics services.
Value Assessment
Rating: good
The contract value of $41.04 million for air transport services over a decade suggests a reasonable price point for specialized, long-term logistical support. Benchmarking against similar long-duration, high-value charter contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery and achieving a fair market price. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for essential air transport services.
Public Impact
Ensures continued logistical support for critical Air Force operations. Supports specialized air charter services, likely for unique payload delivery. Long-term contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) could lead to price escalation or changing needs.
- Potential for unforeseen operational challenges impacting delivery schedules or costs.
Positive Signals
- Awarded via full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract type limits cost overrun risk for the government.
- Long-term commitment provides predictable service availability.
Sector Analysis
This contract falls within the broader transportation and logistics sector, specifically focusing on non-scheduled chartered freight air transportation. Spending in this area is crucial for military readiness and global operations, with benchmarks varying significantly based on payload, distance, and urgency.
Small Business Impact
The data does not indicate specific set-asides for small businesses. While General Atomics is a large prime contractor, subcontracting opportunities for small businesses may exist within the execution of this contract.
Oversight & Accountability
The contract is managed by the Department of the Air Force, implying standard oversight mechanisms for delivery orders and performance monitoring. Further details on specific oversight activities would require access to contract management documentation.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (10 years) increases exposure to market volatility and changing requirements.
- Potential for cost creep if not managed tightly, despite Firm Fixed Price.
- Dependence on a single prime contractor for critical, long-term logistical support.
- Lack of specific small business participation targets noted in the award data.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to GENERAL ATOMICS. IGF::OT::IGF HOSTED PAYLOAD SOLUTIONS ARGOS MISSION
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
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 $41.0 million.
What is the period of performance?
Start: 2018-11-07. End: 2028-12-31.
What is the specific nature of the 'IGF HOSTED PAYLOAD SOLUTIONS ARGOS MISSION' and how does its unique requirement justify this long-term, high-value contract?
The 'IGF HOSTED PAYLOAD SOLUTIONS ARGOS MISSION' likely refers to a specialized requirement for transporting and potentially supporting unique payloads, possibly for intelligence, surveillance, or reconnaissance (ISR) purposes, under the Air Force's 'IGF' (Integrated Government Flight) program. The long-term nature and high value suggest a sustained, critical operational need that requires dedicated, reliable air transport solutions, justifying the extended commitment and investment to ensure mission continuity and specialized handling.
Given the 10-year duration, what mechanisms are in place to mitigate the risk of price increases or contract obsolescence due to technological advancements in air transport?
While a Firm Fixed Price contract limits government exposure to cost increases, mechanisms to mitigate obsolescence and manage long-term pricing might include periodic reviews, option clauses for renegotiation based on market shifts, or performance incentives tied to efficiency. The contract's structure may also allow for adjustments if the nature of the payload or mission requirements significantly changes, though the core price is fixed for the base term.
How does the performance of General Atomics on this contract compare to industry benchmarks for similar air charter services, particularly concerning on-time delivery and payload integrity?
Performance data for General Atomics on this specific contract is not publicly available. However, as a major defense contractor, they are expected to adhere to stringent performance standards. Benchmarking would involve comparing their delivery metrics, incident rates (e.g., delays, damage), and overall mission success against industry averages for comparable high-value, time-sensitive air cargo operations, factoring in the specialized nature of hosted payloads.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA881417R0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 345 INVERNESS DR S, STE 100, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,426,645
Exercised Options: $42,426,645
Current Obligation: $41,038,058
Actual Outlays: $2,542,007
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $47,643,659
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881414D0005
IDV Type: IDC
Timeline
Start Date: 2018-11-07
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2023-11-03
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