Naval Air Systems Command awards $824.7M contract to General Atomics for Predator UAV aircraft

Contract Overview

Contract Amount: $18,750,000 ($18.8M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 1997-10-01

End Date: 2000-12-31

Contract Duration: 1,187 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199809!1700!0133!AT722!NAVAL AIR SYSTEMS COMMAND !N0001997C0106 !A!*!* !19970819!19990930!824684229!809717598!859181984!N!0YJB5!GENERAL ATOMICS AERONAUTICAL S!16761 VIA DEL CAMPO CT !SAN DIEGO !CA!92127!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000018750000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2DAA!PREDATOR UAV !3721!1!*!*!*!B!A!*!D !N!L!1!001!N!1A!A!N!A!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: 199809!1700!0133!AT722!NAVAL AIR SYSTEMS COMMAND !N0001997C0106 !A!*!* !19970819!19990930!824684229!809717598!859181984!N!0YJB5!GENERAL ATOMICS AERONAUTICAL S!16761 VIA DEL CAMPO CT !SAN DIEGO !CA!92127!66000!073!06!SAN DIEGO !SAN DI… Key points: 1. The contract value of $824.7 million for aircraft and spares represents a significant investment in unmanned aerial vehicle technology. 2. General Atomics Aeronautical Systems, Inc. is the sole provider for this specific Predator UAV component, indicating a lack of direct competition for this award. 3. The 'NOT COMPETED' award type raises concerns about potential overpricing and missed opportunities for cost savings through competitive bidding. 4. This spending falls within the broader Defense sector, specifically supporting Air Force aviation capabilities with advanced drone technology.

Value Assessment

Rating: questionable

The contract value of $824,684,229 for aircraft and spares appears high, especially given the 'NOT COMPETED' status. Without competitive benchmarks, it's difficult to definitively assess pricing, but the lack of competition suggests potential for inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning General Atomics was the only company considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for the Predator UAV components, as competitive pressures that typically drive down costs were absent.

Public Impact

Enhances military surveillance and strike capabilities through advanced drone technology. Supports the Department of Defense's modernization efforts in unmanned aerial systems. Potential for job creation and economic activity within the aerospace and defense industry in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value without clear competitive justification.
Potential for cost overruns due to lack of competitive pressure.

Positive Signals

Supports critical defense capabilities (Predator UAV).
Awarded to a known defense contractor with relevant expertise.
Long-term contract duration suggests sustained operational need.

Sector Analysis

This contract falls under the Defense sector, specifically focusing on aircraft and related spares for unmanned aerial vehicles (UAVs). Spending in this area is critical for maintaining technological superiority and operational readiness in modern warfare, with significant government investment typically allocated to advanced drone programs.

Small Business Impact

The contract was awarded to General Atomics Aeronautical Systems, Inc., a large defense contractor. There is no indication of small business participation in this specific award, suggesting that subcontracting opportunities for small businesses may be limited or not explicitly detailed in this data.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further oversight to ensure the pricing is fair and reasonable. The Department of Defense should have robust justification for sole-source awards to ensure taxpayer funds are used efficiently and effectively.

Related Government Programs

Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition may lead to higher costs.
Sole-source award requires strong justification for fairness.
Potential for cost overruns without competitive pressure.
Transparency in pricing justification is crucial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. 199809!1700!0133!AT722!NAVAL AIR SYSTEMS COMMAND !N0001997C0106 !A!*!* !19970819!19990930!824684229!809717598!859181984!N!0YJB5!GENERAL ATOMICS AERONAUTICAL S!16761 VIA DEL CAMPO CT !SAN DIEGO !CA!92127!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000018750000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2DAA!PREDATOR UAV !3721!1!*!*!*!B!A!*!D !N!L!1!0

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 Air Force).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 1997-10-01. End: 2000-12-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price was fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition. The government should have conducted a thorough price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates, to validate the reasonableness of the $824.7 million contract value.

How does the unit cost of these Predator UAV components compare to similar systems or previous procurements, if available?

Without access to specific unit cost data or comparable contract information for similar Predator UAV components, a direct benchmark is not possible. However, given the sole-source nature and the substantial total value, a detailed cost analysis would be crucial to identify any potential price inflation compared to what might be achieved through competition.

What is the long-term strategic value and operational effectiveness of the Predator UAV system being procured under this contract?

The Predator UAV system has been a cornerstone of US military operations for intelligence, surveillance, reconnaissance, and strike missions. Its effectiveness lies in its persistent presence, ability to loiter over targets, and provide real-time data, contributing significantly to situational awareness and mission success in various theaters of operation.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

Address: 16761 VIA DEL CAMPO CT, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline