DHS spent over $31.8M on UAS equipment from General Atomics, awarded via full and open competition

Contract Overview

Contract Amount: $31,837,952 ($31.8M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-08-26

End Date: 2012-08-07

Contract Duration: 2,538 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Defense

Official Description: PURCHASE OF UAS EQUIPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: PURCHASE OF UAS EQUIPMENT Key points: 1. The contract value of $31.8M for Unmanned Aerial Systems (UAS) equipment represents a significant investment in border surveillance technology. 2. General Atomics Aeronautical Systems, Inc. secured this contract, indicating their established position in the defense and aerospace manufacturing sector. 3. Awarded under full and open competition, the process suggests a deliberate effort to solicit the best value from multiple potential suppliers. 4. The contract duration of approximately 2538 days (from 2005 to 2012) points to a long-term need for this specialized equipment. 5. The North American Industry Classification System (NAICS) code 336411 for Aircraft Manufacturing places this procurement within a key industrial category. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses, though subcontracting opportunities may exist.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the $31.8 million expenditure over approximately seven years for UAS equipment indicates a substantial investment. Comparing this to similar large-scale defense or surveillance technology procurements would be necessary to fully assess value for money. The pricing would need to be evaluated against the capabilities and lifespan of the UAS systems acquired.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders (as indicated by 'no': 4) suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The level of competition is a positive indicator for achieving value.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring the government receives the best possible equipment for its investment.

Public Impact

U.S. Customs and Border Protection (CBP) benefits directly through enhanced capabilities for border surveillance and interdiction. The services delivered include the provision of advanced Unmanned Aerial Systems (UAS) equipment, crucial for monitoring vast border areas. The geographic impact is primarily focused on U.S. borders, enhancing national security and law enforcement efforts. The acquisition of UAS technology supports a specialized segment of the aerospace workforce involved in manufacturing and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for technology obsolescence given the contract's duration and the rapid pace of UAS development.
Ensuring adequate training and maintenance support for complex UAS equipment over its lifecycle.
Assessing the long-term operational costs beyond the initial procurement value.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Procurement of advanced UAS technology directly supports critical national security missions for CBP.
The contractor, General Atomics Aeronautical Systems, Inc., is a recognized leader in the UAS industry, implying a high likelihood of receiving quality equipment.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector (NAICS 336411), a significant part of the broader aerospace and defense industry. The market for UAS is rapidly growing, driven by defense, security, and commercial applications. Spending benchmarks for similar large-scale UAS procurements by government agencies would provide context, but this $31.8M expenditure represents a substantial investment in surveillance capabilities.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This indicates that the primary award was made to a large business, General Atomics Aeronautical Systems, Inc. While there's no direct small business set-aside, large prime contractors are often required to meet subcontracting goals with small businesses, potentially creating opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal oversight mechanisms and potentially the Government Accountability Office (GAO) for bid protests or performance reviews. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense UAS Procurement
Border Security Technology Investments
Homeland Security Surveillance Systems
Aerospace Manufacturing Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for cost overruns in long-term sustainment and upgrades.
Need for robust training and maintenance infrastructure for complex systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. PURCHASE OF UAS EQUIPMENT

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2005-08-26. End: 2012-08-07.

What is the specific type and capability of the UAS equipment purchased under this contract?

The provided data does not specify the exact type or capabilities of the Unmanned Aerial Systems (UAS) equipment. However, given the contractor (General Atomics Aeronautical Systems, Inc.) and the agency (U.S. Customs and Border Protection), it is highly probable that the equipment includes advanced surveillance platforms such as fixed-wing or rotary-wing drones equipped with sensors for intelligence, surveillance, and reconnaissance (ISR) missions. These could include electro-optical/infrared (EO/IR) cameras, synthetic aperture radar (SAR), and signals intelligence (SIGINT) payloads, designed for long-endurance flights over large areas to detect and track potential threats along the border.

How does the $31.8 million contract value compare to other DHS UAS procurements during the 2005-2012 period?

Without access to a comprehensive database of all DHS UAS procurements between 2005 and 2012, a direct comparison is difficult. However, $31.8 million is a significant sum, suggesting this contract was for a substantial quantity or a highly advanced suite of UAS. During this period, the use of UAS by agencies like CBP was expanding, driven by needs for persistent surveillance. This contract likely represented a major step in building or enhancing CBP's UAS fleet, potentially placing it among the larger procurements of its time for this specific technology within DHS.

What were the key performance metrics or requirements outlined in the contract for the UAS equipment?

The provided summary data does not detail the specific performance metrics or requirements for the UAS equipment. Typically, such contracts would specify parameters like endurance (flight time), range, payload capacity, sensor resolution (e.g., for cameras or radar), operational altitude, speed, reliability (Mean Time Between Failures - MTBF), and environmental operating conditions. For CBP, key requirements would likely focus on persistent surveillance capabilities, ability to operate in various weather conditions, data transmission security, and ease of deployment and recovery.

What is General Atomics Aeronautical Systems, Inc.'s track record with government UAS contracts prior to and during this period?

General Atomics Aeronautical Systems, Inc. (GA-ASI) has a well-established and extensive track record with government UAS contracts, particularly with the Department of Defense and, by extension, homeland security agencies. Prior to and during the 2005-2012 period of this contract, GA-ASI was a leading developer and manufacturer of large, long-endurance UAS, most notably the Predator and Reaper series. They have consistently secured major contracts for the development, production, and sustainment of these platforms, demonstrating significant experience and capability in delivering complex UAS solutions to government clients.

Were there any notable challenges or issues encountered during the performance of this contract?

The provided data summary does not indicate any specific challenges or issues encountered during the performance of this contract. However, large-scale, long-duration procurements of advanced technology like UAS can often face challenges related to integration, testing, training, sustainment, and evolving operational requirements. Without further details from contract performance reports or oversight reviews, it's impossible to identify any specific problems that may have arisen during the 2005-2012 period for this particular award.

How has spending on UAS equipment by the Department of Homeland Security evolved since the completion of this contract?

Spending on UAS equipment by the Department of Homeland Security (DHS) has significantly increased and evolved since the completion of this contract in 2012. Driven by advancements in technology, decreasing costs for some systems, and a growing recognition of UAS utility for border security, counter-terrorism, and disaster response, DHS components like CBP and the Coast Guard have continued to invest heavily. Procurement has diversified to include smaller, more specialized drones alongside larger platforms, and there's a greater emphasis on data analytics, artificial intelligence, and autonomous capabilities integrated with UAS operations.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

Address: 16761 VIA DEL CAMPO CT, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,135,121

Exercised Options: $31,837,952

Current Obligation: $31,837,952

Parent Contract

Parent Award PIID: HSBP1005D00994

IDV Type: IDC

Timeline