Department of Defense awards $152M contract for charging power supplies, with General Atomics as the sole provider
Contract Overview
Contract Amount: $15,238,684 ($15.2M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2024-09-24
End Date: 2027-07-21
Contract Duration: 1,030 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NRP,CHARGING PWR SU
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $15.2 million to GENERAL ATOMICS for work described as: NRP,CHARGING PWR SU Key points: 1. Contract awarded to a single source raises questions about price competitiveness. 2. Limited competition may indicate specialized technology or a lack of market alternatives. 3. Long contract duration (1030 days) suggests a critical, ongoing need. 4. Fixed-price contract type aims to control costs, but the absence of competition limits downward pressure. 5. The award is for aircraft parts, fitting within the broader defense manufacturing sector. 6. California is the primary state associated with this contract.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of the 'charging power supply' for aircraft. Without competitive bids, it's difficult to ascertain if the $152 million price represents a fair market value. The fixed-price contract type is a positive sign for cost control, but the lack of competition means there's no external pressure to ensure the lowest possible price. Further analysis would require understanding the unique technical specifications and the availability of alternative suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Atomics, was solicited. This typically occurs when a product or service is highly specialized, proprietary, or when there's an urgent need that only one contractor can fulfill. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. The rationale for sole-source procurement should be thoroughly documented to ensure it was justified.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, the government lacks leverage to negotiate the best possible price, potentially leading to higher overall expenditure for this critical component.
Public Impact
The primary beneficiaries are likely the Department of the Navy and potentially other branches of the Department of Defense requiring these specialized charging power supplies. The services delivered involve the manufacturing and supply of critical aircraft components. The geographic impact is centered in California, where General Atomics is based and likely where manufacturing or final assembly will occur. Workforce implications include potential job creation or retention within General Atomics and its supply chain, particularly in specialized manufacturing roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- Lack of competition raises concerns about market responsiveness and potential vendor lock-in.
- Contract duration of over three years requires careful monitoring to ensure continued performance and value.
- Specific details on the 'charging power supply' technology are not publicly available, hindering independent value assessment.
Positive Signals
- Fixed-price contract type provides cost certainty for the government.
- Award to a known entity (General Atomics) may suggest a reliance on established capabilities.
- The contract supports critical defense infrastructure, ensuring operational readiness.
Sector Analysis
The defense manufacturing sector is characterized by high technological complexity, stringent quality requirements, and often, limited competition due to specialized capabilities. Contracts for aircraft parts and auxiliary equipment are a significant segment within this sector. The market size for such components is substantial, driven by ongoing military readiness and modernization efforts. This contract for charging power supplies fits within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413), indicating a niche but essential part of the aerospace and defense industrial base.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Without a set-aside or clear subcontracting goals, the direct impact on the small business ecosystem for this specific award is likely minimal, though General Atomics may engage small businesses within its broader supply chain.
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 fixed-price contract structure, which obligates the contractor to deliver specified goods. Transparency is limited by the sole-source nature of the award and the proprietary aspects of the technology. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Aircraft Parts Manufacturing
- Defense Industrial Base
- Power Supply Equipment
- Naval Aviation Support
- Sole-Source Procurements
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Tags
defense, department-of-defense, department-of-the-navy, general-atomics, sole-source, aircraft-parts, power-supply, fixed-price, california, manufacturing, naics-336413
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to GENERAL ATOMICS. NRP,CHARGING PWR SU
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 $15.2 million.
What is the period of performance?
Start: 2024-09-24. End: 2027-07-21.
What is the specific technical function and criticality of these charging power supplies for the Navy's aircraft?
The provided data does not specify the exact technical function or criticality of the 'charging power supplies' beyond their classification under NAICS 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). However, in the context of naval aviation, such components are essential for maintaining the operational readiness of aircraft. They could be involved in charging batteries for various aircraft systems, powering diagnostic equipment, or supporting ground operations. Their criticality is implied by the Department of Defense's willingness to award a substantial, sole-source contract, suggesting these supplies are vital for specific aircraft platforms or support equipment that may have unique power requirements not met by standard commercial off-the-shelf solutions.
Why was this contract awarded on a sole-source basis instead of being competed?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For this contract, potential reasons could include unique technical specifications that only General Atomics can meet, proprietary technology developed by the company, or an urgent need where only this contractor possesses the necessary capacity and expertise to deliver within the required timeframe. The Department of Defense must have documented a specific justification, such as 'only one responsible source' or 'urgent and compelling reasons,' to bypass the standard competitive procurement process. Without access to the specific justification documentation, the precise reason remains speculative.
How does the $152 million contract value compare to similar procurements for aircraft power supplies?
Direct comparison of the $152 million contract value to similar procurements is difficult without more specific details on the technology and application. The 'charging power supply' could refer to a wide range of equipment, from small battery chargers to large, integrated power units for advanced aircraft systems. Given the sole-source nature and the award to a major defense contractor like General Atomics, it suggests a potentially specialized or high-value system. Benchmarking would require identifying contracts for comparable power supply units with similar technical specifications, quantities, and contract types (e.g., fixed-price). The absence of competition inherently limits the ability to establish a clear market-based value benchmark.
What are the potential risks associated with a sole-source award of this magnitude?
The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may not be receiving the best possible value for their money. Other risks include vendor lock-in, where the government becomes overly reliant on a single supplier, potentially limiting future flexibility and innovation. There's also a risk that without competition, the contractor may have less incentive to prioritize efficiency or cost reduction throughout the contract performance period. Furthermore, the justification for sole-source procurement itself could be scrutinized if it was not adequately supported, raising concerns about the integrity of the acquisition process.
What is General Atomics' track record with the Department of Defense, particularly in supplying aircraft components?
General Atomics is a well-established defense contractor with a significant history of supplying advanced technologies and platforms to the Department of Defense. They are particularly known for their work in unmanned aerial systems (UAS), including the Predator and Reaper drones, as well as for their expertise in various defense electronics, sensors, and power systems. Their track record with the DoD is extensive, involving numerous contracts across different branches. While specific details on their performance for every contract are not publicly itemized here, their continued success in securing large defense contracts suggests a generally positive performance history and a strong capability to meet complex military requirements, including the supply of critical aircraft components.
What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Navy?
Historical spending patterns for NAICS code 336413 ('Other Aircraft Parts and Auxiliary Equipment Manufacturing') by the Department of the Navy are substantial, reflecting the continuous need for maintenance, repair, and upgrades of its vast aircraft fleet. While the exact total annual spending fluctuates based on modernization programs, operational tempo, and budget allocations, it consistently represents a significant portion of the Navy's procurement and maintenance budget. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends, major contractors, and the types of components most frequently procured within this category. This specific $152 million award is one data point within that larger, ongoing spending stream.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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
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: $15,238,684
Exercised Options: $15,238,684
Current Obligation: $15,238,684
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,286,881
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038323GSX01
IDV Type: BOA
Timeline
Start Date: 2024-09-24
Current End Date: 2027-07-21
Potential End Date: 2027-07-21 00:00:00
Last Modified: 2026-02-09
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