DHS Spends $22.6M on UAS Hardware from General Atomics, Raising Oversight Questions

Contract Overview

Contract Amount: $22,585,692 ($22.6M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-30

End Date: 2012-10-11

Contract Duration: 1,472 days

Daily Burn Rate: $15.3K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UAS HARDWARE REQUIREMENTS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.6 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: UAS HARDWARE REQUIREMENTS Key points: 1. Significant contract value of $22.6 million for Unmanned Aircraft System (UAS) hardware. 2. Sole-source award to General Atomics Aeronautical Systems, Inc. limits competitive pricing. 3. Potential risk associated with reliance on a single vendor for critical hardware. 4. Spending falls within the Aircraft Manufacturing sector, with specific NAICS code 336411.

Value Assessment

Rating: questionable

The contract value of $22.6 million for UAS hardware is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar UAS hardware procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning competition was not sought. This significantly impacts price discovery, as the government did not benefit from a competitive bidding process to secure the best possible price.

Taxpayer Impact: The lack of competition in this sole-source award may have resulted in higher costs for taxpayers than if multiple vendors had been allowed to bid.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The reliance on a single supplier could create vulnerabilities in the supply chain. The effectiveness and long-term value of the acquired UAS hardware are not explicitly detailed. Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing assessment.
Potential for overpayment due to non-competitive nature.

Positive Signals

Procurement of critical UAS hardware for homeland security.
Contract awarded to a known entity in the aerospace industry.

Sector Analysis

This procurement falls under the Aircraft Manufacturing sector, specifically for Unmanned Aircraft Systems. Spending benchmarks for this niche area are difficult to ascertain without more specific data on comparable UAS hardware contracts.

Small Business Impact

The contract was awarded to General Atomics Aeronautical Systems, Inc., a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business engagement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government received fair value and that the procurement process was justified. Further review of the justification for sole-source is recommended.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on cost justification
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.6 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. UAS HARDWARE REQUIREMENTS

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 $22.6 million.

What is the period of performance?

Start: 2008-09-30. End: 2012-10-11.

What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly vetted?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. A thorough vetting process would involve documenting why other sources were not viable and ensuring the selected vendor's capabilities met the stringent requirements.

How does the $22.6 million expenditure compare to the market price for similar UAS hardware, and what steps were taken to ensure cost-effectiveness?

Without competitive bids, a direct comparison to market prices is challenging. The government likely relied on historical pricing, independent cost estimates, or negotiation with the sole provider. The absence of competition raises concerns about whether the most cost-effective solution was secured for the taxpayer.

What is the long-term operational effectiveness and strategic value of the UAS hardware procured under this contract for U.S. Customs and Border Protection?

The data focuses on the procurement aspect and does not detail the operational effectiveness or strategic value of the UAS hardware. Assessing this would require reviewing performance reports, mission success rates, and how the hardware contributes to the overall objectives of CBP's surveillance and border security missions.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,005,402

Exercised Options: $22,585,692

Current Obligation: $22,585,692

Parent Contract

Parent Award PIID: HSBP1008D01990

IDV Type: IDC

Timeline