DoD's $31M EMALS Test Site Operations Contract Awarded to General Atomics

Contract Overview

Contract Amount: $30,970,845 ($31.0M)

Contractor: General Atomics

Awarding Agency: Department of Defense

Start Date: 2019-01-07

End Date: 2021-12-31

Contract Duration: 1,089 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EMALS TEST SITE OPERATIONS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to GENERAL ATOMICS for work described as: EMALS TEST SITE OPERATIONS Key points: 1. General Atomics secured a $31M contract for EMALS test site operations. 2. The contract was not competed, raising questions about price discovery. 3. Operations are located in California, a key hub for defense manufacturing. 4. This spending supports advanced aircraft launch systems, a critical defense capability.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar test site operations is difficult without competitive data.

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.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these essential test site operations.

Public Impact

Supports the development and testing of advanced naval aviation technology. Ensures readiness of critical infrastructure for future aircraft carrier operations. Potential for cost inefficiencies due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Limited transparency on pricing

Positive Signals

  • Supports critical defense technology
  • Operations in a key defense manufacturing state

Sector Analysis

This contract falls within the defense sector, specifically supporting advanced aircraft systems. Spending benchmarks for specialized test site operations are highly variable and depend on the complexity of the technology being tested.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

The non-competitive nature of this award warrants closer oversight to ensure fair pricing and efficient use of funds. Accountability for cost management under the CPFF structure is crucial.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award lacks competitive pricing.
  • Cost Plus Fixed Fee contract type increases cost overrun risk.
  • Limited transparency on pricing justification.
  • Potential for contractor inefficiencies without competitive pressure.

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to GENERAL ATOMICS. EMALS TEST SITE OPERATIONS

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 $31.0 million.

What is the period of performance?

Start: 2019-01-07. End: 2021-12-31.

What was the justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need or lack of qualified sources. Without this information, it's impossible to assess the price discovery process or confirm if a fair and reasonable price was achieved.

What are the potential risks associated with a Cost Plus Fixed Fee contract for test site operations?

Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed projections, as the government absorbs these costs. The fixed fee provides an incentive for the contractor to control costs, but the government bears the primary financial risk. Effective oversight is crucial to manage these risks.

How does this spending contribute to the overall effectiveness of the EMALS program?

This spending is essential for the operational testing and validation of the EMALS system, a critical component for future naval aviation capabilities. Successful testing ensures the system's reliability and performance, directly contributing to the program's overall effectiveness and the Navy's operational readiness.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER 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: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121

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: $32,289,660

Exercised Options: $32,289,660

Current Obligation: $30,970,845

Actual Outlays: $6,883,035

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $7,734,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001916G0006

IDV Type: BOA

Timeline

Start Date: 2019-01-07

Current End Date: 2021-12-31

Potential End Date: 2021-12-31 00:00:00

Last Modified: 2022-02-07

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