DoD awards $128.8M contract to AeroVironment for aircraft manufacturing, with no competition
Contract Overview
Contract Amount: $12,879,163 ($12.9M)
Contractor: Aerovironment, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-12
End Date: 2008-03-31
Contract Duration: 658 days
Daily Burn Rate: $19.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: MONROVIA, LOS ANGELES County, CALIFORNIA, 91016
Plain-Language Summary
Department of Defense obligated $12.9 million to AEROVIRONMENT, INC. for work described as: Key points: 1. Significant contract value of $128.8 million awarded. 2. Sole-source award to AeroVironment, Inc. raises competition concerns. 3. Contract duration of 658 days suggests a substantial project. 4. Aircraft manufacturing sector with potential implications for defense capabilities.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific aircraft and its role in U.S. Special Operations Command operations are not detailed, limiting public understanding. Dependence on a single contractor for critical defense assets could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on specific aircraft and use
Positive Signals
- Award to established defense contractor (AeroVironment)
- Supports U.S. Special Operations Command capabilities
Sector Analysis
The Department of Defense frequently awards large contracts in the aircraft manufacturing sector. Benchmarks for similar sole-source contracts are difficult to establish without competitive data, but cost-plus contracts often warrant close scrutiny.
Small Business Impact
This contract was awarded directly to AeroVironment, Inc., and there is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure cost reasonableness and effective execution. Transparency regarding the justification for not competing the award is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award lacks competition.
- Cost-plus contract type can lead to cost overruns.
- No small business participation indicated.
- Lack of transparency on aircraft specifics and use.
- Potential for contractor to incur costs beyond initial estimates.
Tags
aircraft-manufacturing, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to AEROVIRONMENT, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AEROVIRONMENT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2006-06-12. End: 2008-03-31.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without specific documentation from the Department of Defense, it is impossible to determine the precise reason. However, sole-source contracts often raise concerns about potential cost inflation and reduced innovation due to the absence of competitive pressure.
How does the Cost Plus Fixed Fee structure impact the overall cost and risk for the government?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can vary significantly depending on the actual costs incurred. This structure shifts some of the cost risk to the government, as they are responsible for all allowable costs. Effective oversight is critical to control costs and prevent overruns.
What is the specific type of aircraft being manufactured and its intended operational use by U.S. Special Operations Command?
The provided data does not specify the exact type of aircraft or its intended operational use. This lack of detail limits the ability to assess the strategic importance, potential risks, and overall value of the contract. Understanding the specific application would allow for a more informed analysis of the procurement's effectiveness and necessity.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 181 W HUNTINGTON DR STE 20, MONROVIA, CA, 31
Business Categories: Category Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-12
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2010-07-23
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