Department of Defense Awards $5.38M for Ship Snubbers and Fasteners to General Atomics
Contract Overview
Contract Amount: $5,377,812 ($5.4M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2021-08-20
End Date: 2025-07-25
Contract Duration: 1,435 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SNUBBERS AND FASTENERS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $5.4 million to GENERAL ATOMICS for work described as: SNUBBERS AND FASTENERS Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1435 days indicates a long-term need for these specialized components. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not closely monitored. 4. This award falls under the Ship Building and Repairing sector, crucial for naval readiness. 5. The North American Industry Classification System (NAICS) code 336611 points to a specific manufacturing niche. 6. The contract was awarded by the Department of the Navy, a primary user of such components.
Value Assessment
Rating: fair
Benchmarking the value of this $5.38 million contract for snubbers and fasteners is challenging without specific performance metrics or comparable contract data. The CPFF structure necessitates rigorous oversight to ensure costs remain reasonable and do not escalate beyond initial projections. While the amount is not exceptionally large, the long duration suggests significant underlying costs. Further analysis would require understanding the specific technical requirements and the criticality of these components to the naval platforms they support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this award, providing the Navy with a range of options and potentially driving down costs compared to a sole-source or limited competition scenario.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government receives the best value for its investment.
Public Impact
The primary beneficiaries are the U.S. Navy's shipbuilding and repair programs, ensuring the availability of critical components for naval vessels. Services delivered include the provision of specialized snubbers and fasteners, essential for the structural integrity and operational functionality of ships. The geographic impact is centered in California, where the contractor, GENERAL ATOMICS, is located, potentially supporting local jobs and the regional economy. Workforce implications may include specialized manufacturing roles within GENERAL ATOMICS and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
- Lack of specific performance metrics makes it difficult to assess value for money beyond competitive bidding.
- Long contract duration (1435 days) increases the risk of scope creep or evolving requirements impacting final cost.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Contractor GENERAL ATOMICS is a known entity in defense contracting, suggesting a degree of reliability.
- The components are critical for naval shipbuilding and repair, indicating a clear and necessary government requirement.
Sector Analysis
The Ship Building and Repairing sector (NAICS 336611) is a vital component of the defense industrial base, supporting the construction, maintenance, and modernization of naval fleets. Spending in this sector is often characterized by large, long-term contracts for complex systems and components. Comparable spending benchmarks would typically involve other contracts for ship components, structural elements, or specialized equipment procured by the Department of the Navy or other maritime defense agencies. The market is generally dominated by a few large prime contractors and a network of specialized suppliers.
Small Business Impact
There is no indication from the provided data that this contract includes a small business set-aside. Given the specialized nature of ship components and the contractor's profile, it is likely that GENERAL ATOMICS is a large business. Subcontracting opportunities for small businesses may exist within the supply chain for raw materials or less specialized components, but this contract does not appear to be directly aimed at fostering small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Naval Ship Building
- Defense Procurement
- Ship Component Manufacturing
- Department of Defense Contracts
- General Dynamics
- Huntington Ingalls Industries
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration increases potential for scope creep and cost escalation.
- Lack of specific performance metrics makes value-for-money assessment challenging.
Tags
defense, department-of-defense, department-of-the-navy, ship-building-and-repairing, general-atomics, full-and-open-competition, cost-plus-fixed-fee, delivery-order, california, long-term-contract, specialized-components
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.4 million to GENERAL ATOMICS. SNUBBERS AND FASTENERS
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 $5.4 million.
What is the period of performance?
Start: 2021-08-20. End: 2025-07-25.
What is the historical spending pattern of the Department of the Navy on snubbers and fasteners, and how does this award compare?
Analyzing historical spending on specific components like 'SNUBBERS AND FASTENERS' requires access to detailed procurement databases. Without that granular data, a direct comparison is difficult. However, the Department of the Navy consistently spends billions annually on shipbuilding, repair, and maintenance, which includes a vast array of components. This $5.38 million award appears to be a specific, targeted procurement for critical parts. If similar awards for these components have been made in the past, their frequency and value would provide context. A significant deviation in price or quantity from historical norms might warrant further investigation into market fluctuations or changes in technical requirements.
What is GENERAL ATOMICS' track record with Cost Plus Fixed Fee (CPFF) contracts, particularly with the Department of the Navy?
GENERAL ATOMICS has a significant track record in defense contracting, often involved in complex systems and platforms, including naval programs. Their experience with CPFF contracts would likely be extensive, given the nature of advanced defense work where requirements can evolve. Assessing their specific track record with CPFF requires reviewing past performance evaluations and contract close-out data. Generally, CPFF contracts are used when precise cost estimation is difficult due to uncertainty in the scope of work or technological challenges. The Navy's experience with GENERAL ATOMICS on such contracts would inform their confidence in the contractor's ability to manage costs effectively while meeting technical specifications.
How do the technical specifications for these snubbers and fasteners compare to industry standards or previous procurements?
The provided data does not include the technical specifications for the snubbers and fasteners. To assess how they compare to industry standards or previous procurements, one would need to access the detailed contract statement of work (SOW) or technical data package. Snubbers are typically used for vibration and shock absorption, while fasteners are critical for structural integrity. Their specific design, materials, and performance requirements (e.g., load capacity, environmental resistance) would determine their complexity and cost. Comparing these specifications to military standards (MIL-SPECs) or commercial off-the-shelf (COTS) equivalents, if applicable, would reveal whether this is a custom-engineered solution or a more standardized item.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific procurement?
The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a negotiated fixed fee. For this procurement of snubbers and fasteners, risks include potential cost overruns if the manufacturing process proves more complex or material costs increase unexpectedly. Scope creep, where the requirements subtly expand during the contract period, can also inflate costs. Effective risk mitigation relies heavily on robust government oversight, detailed cost tracking, and clear communication channels to manage any deviations from the original plan promptly.
Are there alternative suppliers or technologies that could fulfill the need for these snubbers and fasteners at a potentially lower cost?
The fact that this contract was awarded under 'FULL AND OPEN COMPETITION' suggests that the Navy solicited bids from all interested and capable sources. This process is designed to identify the most competitive offers. However, it doesn't inherently guarantee that all potential alternative suppliers or technologies were considered or that the chosen solution represents the absolute lowest cost option available in the broader market. A deeper analysis would involve researching the market for snubbers and fasteners, identifying other manufacturers, and understanding if different technological approaches (e.g., advanced materials, different designs) could meet the Navy's requirements more cost-effectively. Without specific technical requirements, it's hard to definitively say if alternatives exist.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0016720R0009
Pricing Type: COST PLUS FIXED FEE (U)
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: $5,377,812
Exercised Options: $5,377,812
Current Obligation: $5,377,812
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $648,530
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016720D0013
IDV Type: IDC
Timeline
Start Date: 2021-08-20
Current End Date: 2025-07-25
Potential End Date: 2025-07-25 00:00:00
Last Modified: 2025-12-05
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)
- CVN 81 Emals Pre-Production Planning — $511.0M (Department of Defense)
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)