General Atomics awarded $511M for CVN 81 EMALS pre-production planning, a sole-source contract
Contract Overview
Contract Amount: $511,042,430 ($511.0M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2032-02-28
Contract Duration: 3,710 days
Daily Burn Rate: $137.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CVN 81 EMALS PRE-PRODUCTION PLANNING
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $511.0 million to GENERAL ATOMICS for work described as: CVN 81 EMALS PRE-PRODUCTION PLANNING Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant funding allocated for pre-production planning, indicating a critical early stage of a major defense program. 3. Long contract duration of 10 years suggests a phased approach to development and production. 4. The contract is a definitive contract with a firm fixed price, providing cost certainty for the government. 5. The value of the contract represents a substantial investment in naval aviation technology. 6. The North American Industry Classification System (NAICS) code 336413 points to specialized manufacturing within the aerospace sector.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its specific nature as pre-production planning for a unique naval system. However, the absence of competition for a contract of this magnitude raises concerns about potential overpricing. Without competitive bids, it's difficult to ascertain if the $511 million represents a fair market value for the planning services. Further analysis would require detailed cost breakdowns and comparisons to similar, albeit rare, pre-production planning efforts for major defense platforms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one contractor, General Atomics, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or national security reasons, they inherently limit price negotiation and potentially lead to higher costs for the government compared to a fully competed contract. The lack of multiple bidders means there was no direct price competition to drive down costs.
Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to achieve the lowest possible price. The government's negotiating position is weakened without alternative offers.
Public Impact
The primary beneficiary is the U.S. Navy, which will receive critical planning for the EMALS system on the CVN 81 aircraft carrier. Services delivered include pre-production planning essential for the successful integration and future manufacturing of the Electromagnetic Aircraft Launch System (EMALS). The geographic impact is concentrated in California, where General Atomics is located and likely where much of the planning work will occur. This contract supports highly specialized engineering and technical roles within the aerospace and defense industry, potentially impacting the workforce in those areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Large contract value for planning phase could indicate cost overruns if not managed tightly.
- Long contract duration may present challenges in adapting to evolving technological requirements.
- Lack of transparency inherent in sole-source procurements can obscure true value for money.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Award to a known contractor with expertise in the field may ensure quality and timely execution of planning.
- Focus on pre-production planning is crucial for the success of a complex defense system like EMALS.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components and systems. The market for advanced naval aviation technology is highly specialized, with a limited number of prime contractors capable of undertaking such large-scale, critical projects. General Atomics is a significant player in this niche. The value of this contract, while substantial, is within the range of major defense system development phases, reflecting the high costs associated with cutting-edge military technology.
Small Business Impact
This contract does not appear to involve a small business set-aside, as General Atomics is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or reporting requirements detailed in the contract award, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses for specialized support services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. As a sole-source award, there may be heightened scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Department of Defense's Inspector General, particularly concerning the justification for the sole-source nature and the reasonableness of the price. Transparency may be limited due to the non-competitive nature, but reporting requirements on progress and cost will be essential.
Related Government Programs
- Naval Aviation Programs
- Aircraft Launch and Recovery Equipment
- Major Defense Acquisition Programs
- Electromagnetic Aircraft Launch System (EMALS)
Risk Flags
- Sole-source award may limit cost savings.
- Potential for cost growth in long-duration planning contract.
- Technology maturity and integration risks associated with EMALS.
Tags
defense, department-of-defense, department-of-the-navy, general-atomics, sole-source, definitive-contract, firm-fixed-price, california, large-contract, aerospace-manufacturing, naval-aviation, emals
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $511.0 million to GENERAL ATOMICS. CVN 81 EMALS PRE-PRODUCTION PLANNING
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 $511.0 million.
What is the period of performance?
Start: 2022-01-01. End: 2032-02-28.
What is the specific justification for awarding this contract on a sole-source basis to General Atomics?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available, or when there is a compelling urgency, or when the requirement is a follow-on to a competitively awarded contract where only the original contractor can provide the necessary services or supplies. For a system like EMALS, it's possible that General Atomics possesses unique intellectual property, specialized manufacturing capabilities, or has been designated as the sole provider due to prior development work, making competition impractical or detrimental to program schedule and cost. A formal Justification for Other than Full and Open Competition (JOFOC) would normally be required and publicly accessible for such an award.
How does the $511 million pre-production planning cost compare to the total estimated cost of the CVN 81 EMALS system?
The provided data only includes the value of the pre-production planning contract ($511 million) and does not offer any information on the total estimated cost of the CVN 81 EMALS system or its subsequent production phases. Pre-production planning costs can represent a significant portion of the initial development budget for complex defense systems, but they are typically a fraction of the overall program cost, which includes full-scale production, integration, testing, and sustainment. Without the total program cost, a direct comparison of this planning phase expenditure is not feasible. Further research into the CVN 81 program's overall budget would be necessary.
What are the key performance indicators (KPIs) or milestones associated with this pre-production planning contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or milestones for this pre-production planning contract. However, for a contract of this nature, typical milestones would likely include the finalization of system design specifications, the development of detailed manufacturing plans, the establishment of supply chain strategies, the creation of testing protocols, and the successful demonstration of critical planning elements. The firm fixed price nature suggests that these milestones are well-defined and tied to payment schedules. The contract's duration of over 10 years implies a phased approach to achieving these planning objectives.
What is General Atomics' track record with the EMALS program or similar large-scale defense systems?
General Atomics has a significant track record in developing and manufacturing advanced systems for defense applications. They are notably the prime contractor for the Electromagnetic Aircraft Launch System (EMALS) and the Advanced Arresting Gear (AAG) for the Navy's Gerald R. Ford-class aircraft carriers. This existing experience provides them with deep institutional knowledge and technical expertise directly relevant to the CVN 81 EMALS pre-production planning. Their history with the Ford-class program, which also utilized EMALS, suggests a capability to handle complex, large-scale defense projects, although challenges and cost adjustments are not uncommon in such programs.
Are there any known risks or challenges associated with the EMALS technology itself that could impact this contract?
The Electromagnetic Aircraft Launch System (EMALS) technology, while offering advantages over traditional steam catapults, has faced its own set of challenges and scrutiny during development and initial deployment on the Ford-class carriers. These have included issues related to reliability, maintenance complexity, and integration with shipboard systems. Such technical hurdles could indirectly impact the pre-production planning phase by requiring adjustments to design, manufacturing processes, or testing requirements. The long duration of this contract may also expose it to evolving technological requirements or unforeseen issues discovered during ongoing EMALS operations, necessitating adaptive planning.
What is the historical spending trend for EMALS pre-production planning or similar systems within the Department of the Navy?
Historical spending data specifically for EMALS pre-production planning is not readily available in the provided contract details. However, the development and integration of major new systems for naval platforms, such as aircraft launch and recovery systems, typically involve substantial upfront investment in research, development, and planning. The $511 million allocated here for pre-production planning for a single carrier's system is indicative of the high costs associated with advanced defense technology. Previous major naval system procurements often show significant funding allocated in early phases, reflecting the complexity and innovation involved.
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: N0001921R0051
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: $1,281,838,537
Exercised Options: $1,271,293,467
Current Obligation: $511,042,430
Subaward Activity
Number of Subawards: 298
Total Subaward Amount: $515,124,593
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-01-01
Current End Date: 2032-02-28
Potential End Date: 2032-02-28 00:00:00
Last Modified: 2025-12-18
More Contracts from General Atomics
- CVN 79 Emals Long Lead Time Material — $1.7B (Department of Defense)
- 200310!000495!1700!A8050 !naval AIR Warfare Center, Aircra!n6833503c0205 !A!N! !N! !20030728!20041028!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!66000!073!06!san Diego !SAN Diego !california!+000004883000!n!n!000107026822!1710!aircraft Landing Equipment !c9e!all Other Supplies and Equipme!2000!not Discernable or Classified !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !a!y!u!2!002!b! !A!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $928.2M (Department of Defense)
- CVN 78 Production Emals — $710.8M (Department of Defense)
- 200411!001061!1700!A8050 !naval AIR Warfare Center, Aircra!n6833504c0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!37800!029!34!lakehurst AIR Engine!ocean !NEW Jersey!+000016000000!n!n!000145621824!1710!aircraft Landing Equipment !a1c!other Aircraft Equipment !223 !cvn(x) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1g!a!n!z! ! !N!C!N! ! ! !z!b!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $590.2M (Department of Defense)
- Research&development and Fabrication of Inertial Confinement Fusion (ICF) Targets for the Office of Rtd&e NA-11, Experimental Sciences NA-113 — $180.0M (Department of Energy)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)