DoD awards $20M for EMALS Rotor Shaft Forgings to General Atomics, a sole-source contract
Contract Overview
Contract Amount: $19,981,289 ($20.0M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2007-11-06
End Date: 2016-03-11
Contract Duration: 3,048 days
Daily Burn Rate: $6.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EMALS ROTOR SHAFT FORGNINGS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $20.0 million to GENERAL ATOMICS for work described as: EMALS ROTOR SHAFT FORGNINGS Key points: 1. Contract awarded to General Atomics for specialized EMALS rotor shaft forgings. 2. Sole-source award indicates limited competition for this specific component. 3. High value suggests critical role in a major defense program. 4. Lack of competition may impact price discovery and taxpayer value.
Value Assessment
Rating: questionable
The contract value of $19.98M for EMALS rotor shaft forgings is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Atomics. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this $19.98M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The specialized nature of the forgings could justify a sole-source award, but transparency is crucial. The long contract duration (2007-2016) warrants scrutiny of ongoing costs and performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Specialized component for a major defense system
Sector Analysis
The procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a niche within the broader aerospace and defense sector. Spending benchmarks are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
This contract was awarded to General Atomics, a large business. There is no indication that small businesses were involved in the primary contract award, limiting opportunities for them in this specific procurement.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure fair pricing and adherence to contract terms, despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Lack of transparency in the procurement process.
- Limited opportunity for small business participation.
- Dependency on a single supplier for critical components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to GENERAL ATOMICS. EMALS ROTOR SHAFT FORGNINGS
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2007-11-06. End: 2016-03-11.
What was the justification for the sole-source award, and were alternative sourcing options explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this EMALS rotor shaft forgings contract, the specific rationale needs to be documented by the Department of Defense. Exploring alternative sourcing options, even for specialized components, is crucial for ensuring fair pricing and preventing vendor lock-in.
How was the price determined for this sole-source contract to ensure fair and reasonable pricing for taxpayers?
For sole-source contracts, price determination often relies on cost analysis, historical pricing data from similar contracts (if available), or negotiation based on the contractor's proposed costs and profit margins. The Defense Contract Management Agency would typically review the contractor's cost proposal and potentially conduct audits to validate the reasonableness of the price before award.
What is the long-term strategic value and potential obsolescence risk associated with these specific forgings?
The long-term value depends on the lifespan and criticality of the EMALS system. If EMALS is a foundational technology for future naval aviation, the forgings hold significant value. However, rapid technological advancements could lead to obsolescence, making it crucial to assess the system's projected service life and the availability of future support or replacement parts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
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
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,981,289
Exercised Options: $19,981,289
Current Obligation: $19,981,289
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-11-06
Current End Date: 2016-03-11
Potential End Date: 2016-03-11 00:00:00
Last Modified: 2015-11-17
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