DoD Awards $118M Non-Recurring Engineering Contract to General Atomics for Aircraft Manufacturing

Contract Overview

Contract Amount: $118,105,099 ($118.1M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-16

End Date: 2027-04-30

Contract Duration: 1,596 days

Daily Burn Rate: $74.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON-RECURRING ENGINEERING GCS

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $118.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: NON-RECURRING ENGINEERING GCS Key points: 1. Significant investment in aircraft manufacturing capabilities. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2022-2027) suggests a substantial, complex project. 4. Focus on non-recurring engineering indicates development of new or significantly modified aircraft components.

Value Assessment

Rating: questionable

The contract value of $118M for non-recurring engineering is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this pricing is competitive. The lack of competition further complicates value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competed contract.

Taxpayer Impact: The absence of competition for a contract of this magnitude could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Impacts the advancement of naval aviation technology and capabilities. Potential for job creation and economic activity in California. Ensures the development of critical aircraft components for national defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Supports critical defense manufacturing
Long-term project with defined end date

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for non-recurring engineering. Spending in this sector is often characterized by high R&D costs and long development cycles, with significant government investment.

Small Business Impact

The awardee, General Atomics Aeronautical Systems, Inc., is a large business. There is no indication in the provided data that small businesses were involved in this specific contract, nor is there a stated requirement for subcontracting.

Oversight & Accountability

Oversight will be crucial given the sole-source nature of this award. The Department of the Navy must ensure robust monitoring of contract performance, cost, and adherence to specifications to safeguard taxpayer funds.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to inflated costs.
Sole-source award limits market-driven price discovery.
Long contract duration increases risk of cost overruns or scope creep.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. NON-RECURRING ENGINEERING GCS

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 $118.1 million.

What is the period of performance?

Start: 2022-12-16. End: 2027-04-30.

What is the justification for the sole-source award, and were any attempts made to explore competitive options?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear why General Atomics was the only option. Exploring competitive avenues, even for specialized components, is essential to ensure fair pricing and access to the best available technology for the DoD.

How does the $118M cost compare to industry benchmarks for similar non-recurring engineering efforts in aircraft manufacturing?

Benchmarking this $118M contract is challenging without specific details on the scope of work and the type of aircraft or components involved. Non-recurring engineering costs can vary widely based on complexity, technological innovation, and program maturity. A detailed cost analysis or comparison with similar, previously awarded contracts would be necessary for a meaningful assessment.

What are the key performance indicators and milestones for this contract, and how will their achievement be measured?

Key performance indicators and milestones for this contract would likely focus on the successful design, development, testing, and integration of new aircraft components or systems. The Department of the Navy should have established metrics and regular reviews to track progress, ensure quality, and verify that the engineering objectives are met within the specified timeline and budget.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

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: $121,111,299

Exercised Options: $121,111,299

Current Obligation: $118,105,099

Subaward Activity

Number of Subawards: 76

Total Subaward Amount: $20,800,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001922G0006

IDV Type: BOA

Timeline