DoD awards $12.6M for CHOPPER ASSEMBLY,ED to General Atomics, with no competition
Contract Overview
Contract Amount: $12,585,655 ($12.6M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2024-09-24
End Date: 2030-09-10
Contract Duration: 2,177 days
Daily Burn Rate: $5.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CHOPPER ASSEMBLY,ED
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $12.6 million to GENERAL ATOMICS for work described as: CHOPPER ASSEMBLY,ED Key points: 1. General Atomics secured a $12.6M contract for CHOPPER ASSEMBLY,ED. 2. The contract was awarded on a sole-source basis, limiting competition. 3. Potential risks include lack of price discovery and limited market leverage. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract value of $12.6M for CHOPPER ASSEMBLY,ED is difficult to assess without comparable contract data. The sole-source nature prevents direct price comparison with competitors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation due to the absence of market pressure.
Taxpayer Impact: Without competition, taxpayers may be paying a premium for this procurement, as there was no opportunity for price negotiation against alternative suppliers.
Public Impact
Limited access to advanced helicopter parts due to sole-source award. Potential for increased defense spending without competitive justification. Impact on small businesses in the aerospace supply chain is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to established supplier
Sector Analysis
This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. Benchmarks for this specific component are unavailable, but sole-source awards in defense manufacturing often warrant scrutiny.
Small Business Impact
The contract data indicates that small business participation was not a stated factor in this award. The sole-source nature may limit opportunities for small businesses to enter the supply chain for these specific parts.
Oversight & Accountability
The lack of competition raises questions about the oversight process for this sole-source award. Further review is needed to ensure the justification for not competing was robust and that pricing is fair.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited market transparency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to GENERAL ATOMICS. CHOPPER ASSEMBLY,ED
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 $12.6 million.
What is the period of performance?
Start: 2024-09-24. End: 2030-09-10.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without specific documentation, it's impossible to confirm the validity of this justification. A thorough review would be required to understand why competition was deemed impractical or impossible for this specific procurement.
What is the risk of cost overruns or inflated pricing due to the lack of competition?
The primary risk of a sole-source award is the potential for inflated pricing and cost overruns, as the government lacks the leverage of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive price. This necessitates rigorous price analysis and negotiation by the contracting agency to mitigate financial risks to the taxpayer.
How does this sole-source award impact the overall effectiveness and innovation in the helicopter parts manufacturing sector?
Sole-source awards can stifle innovation by limiting market entry for new or competing suppliers who might offer more advanced or cost-effective solutions. This can lead to a less dynamic sector over time. While it ensures supply from a known entity, it may prevent the adoption of cutting-edge technologies and reduce overall industry competitiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINE 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: $12,585,655
Exercised Options: $12,585,655
Current Obligation: $12,585,655
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $738,981
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: 2030-09-10
Potential End Date: 2030-09-10 00:00:00
Last Modified: 2025-10-27
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