DoD awards $9.98M for applied research, with General Atomics as sole contractor

Contract Overview

Contract Amount: $9,984,024 ($10.0M)

Contractor: General Atomics

Awarding Agency: Department of Defense

Start Date: 2002-09-30

End Date: 2007-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200212!000234!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602C0209 !A!N! !N! !20020930!20051230!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002180000!N!N!000017041496!AD22!RDTE/SERVICES-APPLIED RESEARCH !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B!D!N!A! !D!N!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to GENERAL ATOMICS for work described as: 200212!000234!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602C0209 !A!N! !N! !20020930!20051230!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN D… Key points: 1. Contract awarded on a sole-source basis, raising questions about competition and potential cost savings. 2. Significant portion of contract value allocated to research and development, indicating investment in future capabilities. 3. Contract duration of 1826 days suggests a long-term project requiring sustained effort. 4. Awarded by Naval Air Warfare Center, highlighting focus on naval aviation technology. 5. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 6. Small business participation is not explicitly detailed, warranting further investigation.

Value Assessment

Rating: questionable

The contract value of $9.98 million for applied research services appears reasonable for a sole-source award of this duration. However, without competitive bidding, it is difficult to benchmark against market rates or assess if the government received the best possible value. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, which necessitates robust oversight to ensure efficient use of funds. Further analysis of the contractor's performance on similar contracts would be beneficial.

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 considered. This limits the opportunity for price discovery through competition. While sole-source awards can be justified in specific circumstances, such as when a unique capability is required, the lack of competition here means the government did not benefit from multiple offers to drive down costs or improve terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing the requirement, there is less assurance that the price reflects the lowest achievable cost for the services rendered.

Public Impact

The primary beneficiary is the Naval Air Warfare Center, which will receive applied research services to advance naval aviation technology. The contract supports the development of advanced technologies and capabilities for the U.S. Navy. Geographic impact is concentrated in San Diego, California, where General Atomics is headquartered. Workforce implications include employment opportunities for researchers, engineers, and support staff at General Atomics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
Lack of transparency regarding specific research objectives and deliverables.
Limited information on small business subcontracting opportunities.
Contract duration of nearly 5 years requires sustained oversight to ensure continued value.

Positive Signals

Award to a known contractor, General Atomics, potentially leveraging existing expertise.
Focus on applied research suggests investment in critical future defense capabilities.
Contract is for a significant duration, indicating a stable, long-term project.
Awarded by a specialized agency (Naval Air Warfare Center) focused on specific technological needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically applied research in physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541710 represents this category. The federal government is a significant investor in R&D, with defense-related research forming a substantial portion. Comparable spending benchmarks for applied research contracts can vary widely based on the specific technology and scope, but this $9.98 million award for a nearly five-year period suggests a focused, specialized project.

Small Business Impact

This contract does not appear to have a small business set-aside. General Atomics, the sole awardee, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially impacting the small business ecosystem unless General Atomics voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Air Warfare Center, which awarded the contract. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure the contractor remains within budget and meets performance objectives. The Department of Defense's Inspector General may also conduct audits or investigations if concerns arise regarding waste, fraud, or abuse. Transparency is moderate, with basic contract details available, but specific research outcomes and detailed cost breakdowns may be less accessible.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Research and Development Programs
Applied Research Services
Advanced Technology Development Contracts
General Atomics Defense Contracts

Risk Flags

Sole-source award may indicate a lack of market research or justification.
CPFF contract type increases financial risk for the government.
Limited public information on specific research objectives and expected outcomes.
No clear indication of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to GENERAL ATOMICS. 200212!000234!1700!A8451 !NAVAL AIR WARFARE CENTER, WEAPON!N6893602C0209 !A!N! !N! !20020930!20051230!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002180000!N!N!000017041496!AD22!RDTE/SERVICES-APPLIED RESEARCH !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

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 $10.0 million.

What is the period of performance?

Start: 2002-09-30. End: 2007-09-30.

What is General Atomics' track record with the Naval Air Warfare Center and similar applied research contracts?

General Atomics has a significant history of contracting with the Department of Defense, including the Naval Air Warfare Center. They are well-known for their work in unmanned aerial systems (UAS), advanced sensors, and power systems. Their track record often involves complex R&D projects. While specific performance metrics for this particular contract are not detailed here, their extensive experience in defense R&D suggests a strong capability. However, past performance on other contracts, especially those with similar CPFF structures, would provide a more comprehensive view of their reliability and efficiency in managing costs and delivering results.

How does the $9.98 million value compare to similar applied research contracts for naval aviation technology?

Benchmarking the $9.98 million value is challenging without more specific details on the scope of work and deliverables. Applied research in advanced naval aviation can range significantly in cost. Contracts for developing new sensor suites, propulsion systems, or unmanned platform technologies can easily reach millions of dollars over several years. Given the sole-source nature and the duration (1826 days), this amount appears within a plausible range for specialized R&D. However, a competitive process would have provided a clearer indication of fair market value. Comparing it to other sole-source awards for similar technologies might offer some context, but competitive awards would be the ideal benchmark.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for applied research?

The primary risk with a CPFF contract, especially for applied research where outcomes can be uncertain, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the research proves more complex or time-consuming than initially estimated, costs can escalate significantly. This necessitates stringent government oversight to scrutinize all incurred costs and ensure they are reasonable, allocable, and necessary. Without effective oversight, the government bears the financial risk of unforeseen expenses, potentially exceeding the initially anticipated total cost.

What specific technological advancements or capabilities is this contract expected to yield for the Navy?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' with a Product Service Code (PSC) of 541710, and it was awarded by the Naval Air Warfare Center. While the exact technological advancements are not specified, this suggests the research likely pertains to improving naval aviation platforms, systems, or operational capabilities. This could encompass areas such as advanced materials, new propulsion technologies, enhanced sensor systems, improved avionics, or novel weapon integration concepts. The applied nature implies a focus on developing practical applications rather than purely theoretical research.

What is the historical spending trend for applied research contracts under NAICS code 541710 awarded by the Naval Air Warfare Center?

Analyzing historical spending trends for NAICS 541710 contracts by the Naval Air Warfare Center (NAWC) would require access to a broader dataset than provided. However, generally, federal spending on R&D, particularly within defense, has seen fluctuations based on strategic priorities and budget allocations. NAWC, being a key entity for naval aviation technology, consistently invests in applied research. Spending in this area is often driven by the need to maintain technological superiority, counter emerging threats, and modernize aging platforms. A detailed analysis would involve examining contract databases over several fiscal years to identify patterns in award values, contract types, and specific research areas pursued by NAWC.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess success?

The provided data snippet does not include specific performance metrics or deliverables for this contract. Typically, applied research contracts will outline key milestones, technical reports, prototypes, or demonstrations as deliverables. Performance metrics might include adherence to timelines, achievement of specific technical objectives, or successful integration of developed technologies. Without these details, assessing the contractor's success relies heavily on the government's internal monitoring and evaluation processes. The effectiveness of the contract's outcome can only be judged by reviewing the government's post-award assessments and final acceptance of the research results.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline