DoD's $2.78M contract for aircraft parts awarded to General Atomics, bypassing competition
Contract Overview
Contract Amount: $2,776,524 ($2.8M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2025-04-25
End Date: 2026-08-24
Contract Duration: 486 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HALF BRIDGE UNIT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $2.8 million to GENERAL ATOMICS for work described as: HALF BRIDGE UNIT Key points: 1. The contract's value of $2.78 million for aircraft parts represents a significant investment in specialized manufacturing. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price overruns and limited market engagement. 3. The duration of the contract (486 days) suggests a need for sustained supply of these critical aircraft components. 4. The specific nature of the parts manufactured (NAICS 336413) places this contract within a niche but vital sector of the aerospace industry. 5. The absence of small business set-aside flags indicates that this contract was not specifically targeted to support smaller enterprises. 6. The contract's classification as 'Other Aircraft Parts' suggests it may cover a broad range of components beyond standard airframes.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without more specific details on the 'HALF BRIDGE UNIT' and its intended application. However, awarding $2.78 million without competition inherently limits the ability to ensure optimal value for money. The lack of comparative bids means there's no direct market validation of the pricing. Further analysis would require understanding the criticality of the component 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 it was not competed. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The lack of multiple bidders limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing the award, there is less assurance that the price reflects the lowest reasonable cost for the required goods.
Public Impact
The primary beneficiaries are likely the Department of Defense, specifically the Department of the Navy, which will receive critical aircraft parts. The services delivered involve the manufacturing and supply of specialized aircraft components, essential for maintaining military aviation readiness. The geographic impact is centered in California, where the contractor, General Atomics, is located, potentially supporting local jobs and the regional aerospace ecosystem. Workforce implications may include specialized manufacturing roles within General Atomics, contributing to the skilled labor demand in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-source award.
- Potential for contractor lock-in due to specialized nature of the 'HALF BRIDGE UNIT'.
Positive Signals
- Award to a known entity, General Atomics, suggests a degree of established capability.
- Contract supports critical defense needs for aircraft parts.
- Contract duration indicates a sustained requirement, potentially leading to predictable supply chain management.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413). This is a specialized segment of the broader aerospace industry, which is characterized by high technological requirements, stringent quality control, and significant R&D investment. The market size for aircraft parts is substantial, driven by both commercial aviation and defense needs. This contract represents a specific procurement within the defense segment, likely for a unique or proprietary component.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was either awarded to a large business or that the nature of the requirement did not lend itself to a small business set-aside. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is currently unknown.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management systems. Given it's a sole-source award, the justification for this approach would be subject to review. Transparency regarding the specific 'HALF BRIDGE UNIT' and the rationale for sole-sourcing would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Aircraft Procurement
- Naval Aviation Support Contracts
- Aerospace Component Manufacturing
- Sole-Source Defense Contracts
- Specialized Military Equipment
Risk Flags
- Sole-source award without clear justification.
- Potential for inflated pricing due to lack of competition.
- Dependence on a single supplier for critical components.
- Limited transparency on the specific nature of the 'HALF BRIDGE UNIT'.
Tags
defense, department-of-defense, department-of-the-navy, general-atomics, not-competed, sole-source, aircraft-parts, manufacturing, california, firm-fixed-price, delivery-order, specialized-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.8 million to GENERAL ATOMICS. HALF BRIDGE UNIT
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 $2.8 million.
What is the period of performance?
Start: 2025-04-25. End: 2026-08-24.
What is the specific function and criticality of the 'HALF BRIDGE UNIT' being procured?
The specific function and criticality of the 'HALF BRIDGE UNIT' are not detailed in the provided data. As an 'Other Aircraft Part,' it could range from a minor electronic component to a structural element. Its criticality would depend on its role within the aircraft's systems. Without this information, it's difficult to assess the necessity of a sole-source award or the potential impact of supply chain disruptions. Further investigation into the specific aircraft platform and the unit's integration would be required to understand its importance and justify the procurement strategy.
What was the justification provided for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED' (ct: NOT COMPETED), implying a sole-source award. However, the specific justification for this determination is not included. Typically, sole-source awards require a formal justification, such as the unavailability of other sources, a critical need that cannot be met through competition, or a unique capability possessed by the contractor. Without this documented justification, it is impossible to independently verify the necessity of bypassing the competitive bidding process. This lack of transparency is a significant concern for ensuring fair pricing and efficient use of taxpayer funds.
How does the unit cost of this 'HALF BRIDGE UNIT' compare to similar components in the market or within other DoD contracts?
Direct comparison of the unit cost for this 'HALF BRIDGE UNIT' is not feasible with the given data. The contract value is $2,776,523.80, and the number of units is not specified (no: 1, likely refers to one delivery order). To benchmark the unit cost, we would need to know the quantity of 'HALF BRIDGE UNITS' procured under this award. Furthermore, the unique nature of specialized aircraft parts often means there are few, if any, directly comparable items in the market or across other contracts. A thorough analysis would require identifying the specific part number, its technical specifications, and then searching for similar items in government databases or industry catalogs.
What is General Atomics' track record with similar sole-source contracts for aircraft parts?
General Atomics is a well-established defense contractor with a significant history of supplying complex systems and components, including for aircraft. While this specific data point doesn't detail their history with sole-source awards for aircraft parts, their overall profile suggests they possess specialized capabilities. To assess their track record on similar sole-source contracts, one would need to analyze past DoD procurements awarded to General Atomics, specifically looking for contracts that were not competed and involved aircraft components. This would help determine if they have a pattern of receiving non-competitive awards and whether those awards have historically represented good value for the government.
What are the potential risks associated with relying on a single supplier for these critical aircraft parts?
Relying on a single supplier, especially for critical aircraft parts, introduces several risks. Firstly, there's a risk of price escalation over time, as the supplier faces no competitive pressure to keep costs down. Secondly, supply chain disruptions, whether due to the contractor's internal issues, geopolitical events, or natural disasters, could halt production and impact military readiness. Thirdly, the government may have limited leverage if the supplier fails to meet quality standards or delivery schedules. Finally, the lack of competition can stifle innovation, as the supplier may have less incentive to invest in improving the product or manufacturing process.
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: $5,666,375
Exercised Options: $5,666,375
Current Obligation: $2,776,524
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038324GBT01
IDV Type: BOA
Timeline
Start Date: 2025-04-25
Current End Date: 2026-08-24
Potential End Date: 2026-08-24 00:00:00
Last Modified: 2026-01-05
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