DoD Awards $12M Incremental Funding for Ship Building and Repairing to General Atomics
Contract Overview
Contract Amount: $12,054,771 ($12.1M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2023-06-19
End Date: 2027-04-30
Contract Duration: 1,411 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INCREMENTAL FUNDING FOR CLIN 0001
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $12.1 million to GENERAL ATOMICS for work described as: INCREMENTAL FUNDING FOR CLIN 0001 Key points: 1. The contract is for incremental funding, suggesting ongoing or phased work. 2. General Atomics is a significant defense contractor, indicating potential for large-scale projects. 3. The award is under a full and open competition, implying a competitive bidding process. 4. The sector is Ship Building and Repairing, a critical area for naval operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the incremental funding nature might obscure the total potential cost.
Taxpayer Impact: Taxpayer funds are being allocated for essential naval infrastructure, but the cost-plus nature warrants close monitoring to ensure value for money.
Public Impact
Ensures continued maintenance and potential upgrades for naval vessels. Supports jobs within the shipbuilding and repair industry. Contributes to the operational readiness of the U.S. Navy fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contracts can incentivize higher spending.
- Incremental funding makes total cost visibility challenging.
- Potential for scope creep in long-term shipbuilding projects.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
- General Atomics is an established contractor.
Sector Analysis
The Ship Building and Repairing sector is vital for national defense, involving complex and long-term projects. Spending benchmarks vary widely based on vessel type and scope of work.
Small Business Impact
This award does not appear to directly benefit small businesses, as it went to a large, established contractor. Subcontracting opportunities for small businesses are not specified.
Oversight & Accountability
Oversight will be crucial to manage the cost-plus fixed fee structure and ensure the incremental funding aligns with project milestones and overall value.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Overruns
- Lack of Total Project Cost Visibility
- Potential for Scope Creep
- Limited Small Business Participation
Tags
ship-building-and-repairing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to GENERAL ATOMICS. INCREMENTAL FUNDING FOR CLIN 0001
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 $12.1 million.
What is the period of performance?
Start: 2023-06-19. End: 2027-04-30.
What is the total estimated cost for the entire project, not just this incremental funding?
The provided data only specifies an incremental funding amount of $12,054,771. The total estimated cost for the entire project is not available. This lack of transparency makes it difficult to assess the overall value and potential taxpayer impact beyond this specific funding increment.
What specific services or deliverables are covered by this incremental funding?
The data indicates 'INCREMENTAL FUNDING FOR CLIN 0001' within 'Ship Building and Repairing.' However, specific details regarding the services, repairs, or upgrades covered by this particular funding increment are not provided. This lack of specificity hinders a thorough risk assessment.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar work?
The fixed fee is not explicitly detailed in the provided data, only the contract type (CPFF). To assess its reasonableness, one would need to compare it against the total estimated cost and industry benchmarks for fixed fees on comparable shipbuilding and repair contracts, which requires more detailed financial information.
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: $12,107,055
Exercised Options: $12,107,055
Current Obligation: $12,054,771
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $3,049,228
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: 2023-06-19
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-12-30
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