DoD Awards $1.73B to General Atomics for CVN 79 EMALS Long Lead Time Material
Contract Overview
Contract Amount: $1,726,709,842 ($1.7B)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2014-05-08
End Date: 2030-01-30
Contract Duration: 5,746 days
Daily Burn Rate: $300.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CVN 79 EMALS LONG LEAD TIME MATERIAL
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $1.73 billion to GENERAL ATOMICS for work described as: CVN 79 EMALS LONG LEAD TIME MATERIAL Key points: 1. Significant investment in critical aircraft launch and recovery equipment for a major naval platform. 2. Sole-source award to General Atomics raises questions about price discovery and potential cost efficiencies. 3. Long contract duration (2014-2030) suggests a complex, multi-year procurement with inherent risks. 4. Focus on long-lead time material indicates a proactive approach to managing supply chain dependencies for the CVN 79.
Value Assessment
Rating: questionable
The contract value of $1.73 billion for long lead time material is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar procurements or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and may lead to higher costs for taxpayers as the government lacks leverage from competing bids.
Taxpayer Impact: The lack of competition on this large contract could result in a higher overall cost to taxpayers than if multiple vendors had been considered.
Public Impact
Ensures critical components for the next-generation aircraft carrier (CVN 79) are secured. Supports advanced naval aviation capabilities through the EMALS system. Potential for cost overruns due to sole-source nature impacts taxpayer funds. Long-term commitment highlights the strategic importance of this procurement for naval readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Secures critical long-lead time material
- Supports advanced naval technology
Sector Analysis
This contract falls within the Defense sector, specifically related to shipbuilding and advanced aircraft systems. Spending benchmarks for sole-source, long-lead time procurements of this nature are difficult to establish due to their unique characteristics and lack of direct comparison.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this large sole-source award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure cost reasonableness and prevent potential waste. Robust monitoring of performance and expenditures throughout the contract's long duration is crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration increases risk of scope creep and cost overruns.
- Potential for contractor performance issues over an extended period.
- Dependency on a single supplier for critical components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.73 billion to GENERAL ATOMICS. CVN 79 EMALS LONG LEAD TIME MATERIAL
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 Navy).
What is the total obligated amount?
The obligated amount is $1.73 billion.
What is the period of performance?
Start: 2014-05-08. End: 2030-01-30.
What justification was provided for the sole-source award, and were alternative procurement strategies considered?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. For this contract, the specific justification needs to be reviewed. Alternative strategies, such as phased competitions or market research to identify potential competitors, should have been explored to ensure the best value for the government.
How will the government ensure cost control and value for money given the lack of competition?
With a sole-source contract, cost control relies heavily on robust negotiation, detailed cost analysis, and stringent oversight. The government should employ experienced negotiators, conduct thorough audits of the contractor's cost proposals, and closely monitor performance against established milestones and budgets. Independent cost estimates and benchmarking, where possible, are also vital.
What are the key performance indicators (KPIs) and milestones for this long-lead time material procurement, and how will progress be tracked?
Key performance indicators for long-lead time material typically focus on schedule adherence, quality of manufactured components, and delivery timelines. Milestones would likely include design reviews, material procurement, fabrication stages, and final delivery of components. Progress tracking would involve regular reporting from the contractor, site visits, and independent government quality assurance inspections.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001912R0109
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Diazyme Laboratories, Inc.
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,774,608,098
Exercised Options: $1,742,795,397
Current Obligation: $1,726,709,842
Actual Outlays: $56,343,288
Subaward Activity
Number of Subawards: 1049
Total Subaward Amount: $2,079,643,997
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-05-08
Current End Date: 2030-01-30
Potential End Date: 2030-01-30 00:00:00
Last Modified: 2025-12-23
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