DoD Navy Awards $17.3M for Aircraft Parts to General Atomics, Lacking Competition
Contract Overview
Contract Amount: $17,363,430 ($17.4M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2021-05-11
End Date: 2027-01-31
Contract Duration: 2,091 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ECP-I-EMALS-0042
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $17.4 million to GENERAL ATOMICS for work described as: ECP-I-EMALS-0042 Key points: 1. Significant award to a single large business, General Atomics. 2. Lack of competition raises concerns about price discovery and value. 3. Contract duration extends to 2027, indicating long-term need. 4. Sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The award amount of $17.3M for a single delivery order is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $17.3M award means taxpayers may have paid a premium, as the government did not leverage market forces to secure the lowest possible price.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation as the incumbent contractor faces no pressure. Dependence on a single supplier for critical aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Award to established contractor
- Clear delivery order structure
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense readiness. Spending benchmarks are difficult to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
This award went to a large business, General Atomics, and there is no indication of small business participation. Opportunities for small businesses in this procurement appear to have been missed.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not opened to a wider range of vendors.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- No small business participation
- Long contract duration without clear milestones
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 $17.4 million to GENERAL ATOMICS. ECP-I-EMALS-0042
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 $17.4 million.
What is the period of performance?
Start: 2021-05-11. End: 2027-01-31.
What justification was provided for not competing this significant contract award?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a sole-source. A detailed justification for this decision, such as unique capabilities or urgent need, would typically be required by federal acquisition regulations. Without this justification, it's impossible to assess the validity of the sole-source determination and its impact on value for money.
What is the potential cost impact of awarding this contract without competition?
Awarding a $17.3M contract without competition carries a significant risk of inflated costs. Market research and competitive bidding are designed to drive prices down. A sole-source award removes this pressure, potentially leading to the government paying more than it would have in a competitive environment. Benchmarking against similar, competed contracts is crucial for assessing this impact.
How does this sole-source award align with the Department of the Navy's small business goals?
This award to General Atomics, a large business, does not appear to support small business utilization goals. Federal policy encourages maximizing small business participation. The lack of competition may have precluded opportunities for small businesses to bid on portions of this contract or related subcontracts, potentially hindering their growth and access to government contracts.
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
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,993,527
Exercised Options: $17,363,430
Current Obligation: $17,363,430
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $85,790
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001916G0006
IDV Type: BOA
Timeline
Start Date: 2021-05-11
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-12-01
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