DoD's UCLASS PDR AIR SEGMENT Contract Awarded to General Atomics for $19.8M

Contract Overview

Contract Amount: $19,785,811 ($19.8M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-08-14

End Date: 2015-09-15

Contract Duration: 762 days

Daily Burn Rate: $26.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: UCLASS PDR AIR SEGMENT

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: UCLASS PDR AIR SEGMENT Key points: 1. The contract, valued at $19.8 million, was awarded to General Atomics Aeronautical Systems, Inc. 2. This award falls under Research and Development in the Physical, Engineering, and Life Sciences sector. 3. The contract was not competed, raising potential concerns about price discovery. 4. The primary sector is R&D, with a specific NAICS code of 541712.

Value Assessment

Rating: questionable

The contract value of $19.8 million for a PDR Air Segment is difficult to benchmark without more specific details on the scope of work and deliverables. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed, indicating a sole-source or limited competition scenario. This limits the opportunity for price discovery through market forces and may result in a higher price than if multiple vendors had bid.

Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for the research and development services provided under this contract.

Public Impact

The UCLASS program aims to develop a carrier-based unmanned combat aerial system, a significant advancement in naval aviation capabilities. This contract supports the early research and development phase, focusing on the preliminary design review (PDR) of the air segment. The outcome of this R&D effort could influence future military drone development and deployment strategies. The Department of the Navy is the procuring agency, highlighting its focus on modernizing its fleet with advanced unmanned systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns due to sole-source award
Limited transparency in pricing

Positive Signals

Supports critical R&D for naval aviation
Awarded to a known entity in the aerospace sector

Sector Analysis

The contract falls under the Research and Development sector, specifically NAICS 541712. Spending in this sector is crucial for technological advancement but can be prone to cost overruns due to the inherent uncertainties in R&D projects.

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, which is common for large-scale R&D contracts.

Oversight & Accountability

The lack of competition warrants close oversight to ensure the contractor is delivering value and managing costs effectively. The Department of Defense should monitor progress and expenditures diligently.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost growth in R&D
Limited visibility into specific R&D outcomes
Sole-source award may not yield best value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. UCLASS PDR AIR SEGMENT

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2013-08-14. End: 2015-09-15.

What specific technical milestones were achieved during the PDR phase, and how do they justify the $19.8 million expenditure?

The $19.8 million expenditure was allocated for the Preliminary Design Review (PDR) of the UCLASS Air Segment. This phase typically involves detailed system architecture, component selection, risk assessment, and validation of the design against operational requirements. Specific milestones would include the successful completion of design reviews, simulation results demonstrating key performance parameters, and a finalized design package ready for the next development phase. Justification hinges on the complexity and novelty of developing a carrier-based unmanned combat system.

Given the non-competed nature of this award, what mechanisms are in place to ensure cost reasonableness and prevent potential contractor overreach?

While non-competed, cost reasonableness is typically ensured through government cost analysis, review of contractor's cost proposals, and negotiation. The contract type (Firm Fixed Price) aims to shift some risk to the contractor. However, robust oversight, including regular progress reviews, audits, and potentially independent cost estimates, are crucial to monitor expenditures and ensure the contractor is operating efficiently and delivering value within the agreed-upon price.

How does the R&D conducted under this contract align with broader DoD objectives for unmanned aerial systems and carrier aviation modernization?

This contract directly supports the DoD's strategic objective of modernizing naval aviation through the integration of unmanned systems. The UCLASS program is a key initiative for developing a carrier-based unmanned combat aerial system, which promises enhanced ISR (Intelligence, Surveillance, and Reconnaissance) capabilities, potential strike missions, and reduced risk to manned pilots. The R&D advances technologies essential for autonomous operations, networked warfare, and carrier integration, aligning with the future vision of naval power projection.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001913R0079

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

Address: 14200 KIRKHAM WAY, POWAY, CA, 92064

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: $19,785,811

Exercised Options: $19,785,811

Current Obligation: $19,785,811

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline