Naval Air Systems Command awards $787.8M contract for Predator UAV components to PIONEER U A V, INC
Contract Overview
Contract Amount: $11,731,150 ($11.7M)
Contractor: Pioneer U a V, Inc
Awarding Agency: Department of Defense
Start Date: 1998-05-01
End Date: 2008-11-28
Contract Duration: 3,864 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: 199812!1700!1281!AT722!NAVAL AIR SYSTEMS COMMAND !N0001998C0045 !A!*!* !19980501!19991231!787790906!787790906!787790906!N!0YJB5!PIONEER U A V, INC !9 SCHILLING RD STE 103 !HUNT VALLEY !MD!21031!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000006318194!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !2DAA!PREDATOR UAV !3728!1!*!*!*!B!A!*!D !N!J!1!001!N!1A!A!N!A!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $11.7 million to PIONEER U A V, INC for work described as: 199812!1700!1281!AT722!NAVAL AIR SYSTEMS COMMAND !N0001998C0045 !A!*!* !19980501!19991231!787790906!787790906!787790906!N!0YJB5!PIONEER U A V, INC !9 SCHILLING RD STE 103 !HUNT VALLEY !MD!21031!66000!073!06!SAN DIEGO !SAN DI… Key points: 1. The contract value is substantial at $787.8 million, indicating significant demand for Predator UAV components. 2. PIONEER U A V, INC. secured this contract, suggesting a strong position in the UAV component supply chain. 3. The 'NOT COMPETED' award type raises questions about the procurement process and potential missed cost savings. 4. This spending falls within the Defense sector, specifically supporting Air Force aviation programs.
Value Assessment
Rating: questionable
The contract value of $787.8 million for Predator UAV components is high. Without specific unit data or comparison points for similar components, it's difficult to definitively assess its value. However, the lack of competition suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to a lack of competitive pressure to reduce costs and may not reflect the best value for taxpayers.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these critical UAV components.
Public Impact
Supports critical defense technology (Predator UAVs) used in surveillance and reconnaissance missions. Ensures the continued operation and readiness of unmanned aerial vehicles vital for national security. The significant contract value highlights the economic impact on the awarded company and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Potential for cost overruns due to sole-source award
Positive Signals
- Supports critical defense program
- Ensures component availability for essential aircraft
Sector Analysis
This contract is within the Defense sector, specifically for aircraft components supporting unmanned aerial vehicles (UAVs). Spending on UAVs has been a growing area within defense budgets, reflecting their increasing importance in military operations.
Small Business Impact
There is no indication in the provided data whether PIONEER U A V, INC. is a small business. Further investigation would be needed to determine the impact on small business participation in this contract.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was valid and that fair and reasonable pricing was achieved. Accountability for procurement decisions is crucial.
Related Government Programs
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in procurement
- No clear indication of small business utilization
Tags
department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to PIONEER U A V, INC. 199812!1700!1281!AT722!NAVAL AIR SYSTEMS COMMAND !N0001998C0045 !A!*!* !19980501!19991231!787790906!787790906!787790906!N!0YJB5!PIONEER U A V, INC !9 SCHILLING RD STE 103 !HUNT VALLEY !MD!21031!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000006318194!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !2DAA!PREDATOR UAV !3728!1!*!*!*!B!A!*!D !N!J!1!0
Who is the contractor on this award?
The obligated recipient is PIONEER U A V, 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 $11.7 million.
What is the period of performance?
Start: 1998-05-01. End: 2008-11-28.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative procurement methods considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without the specific documentation, it's impossible to confirm the rationale. However, agencies are generally required to document why competition is not feasible. Reviewing this documentation is key to understanding the procurement decision and ensuring it served the government's best interest.
How does the per-unit cost of these components compare to similar items procured competitively or historically?
Benchmarking the per-unit cost is essential for assessing value. Given this was a sole-source award, direct competitive benchmarks are unavailable. Historical pricing data for the same components, or pricing for functionally similar components procured competitively, would be necessary for a meaningful comparison. A significant deviation from historical or competitive pricing would indicate potential overpayment.
What is the long-term strategy for procuring these UAV components, and will future procurements be competed?
Understanding the long-term procurement strategy is vital for sustained value and cost control. If the technology is mature and multiple suppliers exist, future procurements should ideally be competed to leverage market forces. A plan for transitioning to competitive bidding, where feasible, would demonstrate a commitment to fiscal responsibility and maximizing taxpayer return on investment.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Contractor Details
Address: 9 SCHILLING RD STE 103, HUNT VALLEY, MD, 02
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1998-05-01
Current End Date: 2008-11-28
Potential End Date: 2008-11-28 00:00:00
Last Modified: 2010-02-15
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