DoD's $55M Engineering Services Contract with General Atomics: A Follow-On Action

Contract Overview

Contract Amount: $54,949,257 ($54.9M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-22

End Date: 2012-11-30

Contract Duration: 2,292 days

Daily Burn Rate: $24.0K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $54.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: Key points: 1. The contract awarded to General Atomics Aeronautical Systems, Inc. for engineering services totals $54,949,256.69. 2. This is a follow-on to a competed action, suggesting prior competition may have influenced pricing. 3. The contract duration spans from August 2006 to November 2012, indicating a long-term engagement. 4. The 'COST PLUS FIXED FEE' (CPFF) contract type can sometimes lead to higher costs if not carefully managed. 5. The NAICS code 541330 points to engineering services, a critical sector for defense operations.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can be less price-efficient than fixed-price contracts if cost overruns occur. Without specific benchmarks for similar engineering services contracts, it's difficult to definitively assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' implying that the initial award was competed. However, the current award's competition level is not explicitly stated, leaving its procurement method and price discovery impact unclear.

Taxpayer Impact: The total value of nearly $55 million represents a significant taxpayer investment. The CPFF structure necessitates careful oversight to ensure costs remain reasonable and that the fixed fee is justified.

Public Impact

Taxpayers are funding significant engineering services for the Department of Defense. The long duration of the contract suggests a sustained need for these specialized engineering capabilities. The specific nature of the engineering services impacts the development and maintenance of defense assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type risk
Lack of current competition details
Long contract duration

Positive Signals

Follow-on to competed action
Established contractor

Sector Analysis

Engineering services are crucial for the Department of Defense, encompassing design, development, and testing of complex systems. Spending in this sector is typically high due to the specialized nature of defense requirements and the need for advanced technical expertise.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The 'FOLLOW ON TO COMPETED ACTION' status suggests some level of prior oversight. However, the CPFF contract type requires robust oversight to manage costs and ensure the fixed fee is appropriate for the work performed.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed properly.
Lack of specific details on the 'competed action' makes it difficult to assess true competition impact.
Long contract duration (over 6 years) increases the risk of cost escalation and potential for scope creep.
No information provided on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $54.9 million.

What is the period of performance?

Start: 2006-08-22. End: 2012-11-30.

What specific engineering services were provided under this contract, and how do they align with current defense needs?

The data indicates the contract falls under NAICS code 541330 (Engineering Services) for the Department of the Army. Specific services are not detailed but likely involve technical design, analysis, testing, or integration related to defense systems. Understanding the precise nature of these services is crucial to assess their ongoing relevance and value to the Army's mission objectives.

What was the outcome of the initial competition, and how did it influence the pricing for this follow-on action?

The data states this is a 'FOLLOW ON TO COMPETED ACTION,' implying the original contract was awarded through a competitive process. The pricing for this follow-on action would ideally reflect the efficiencies and market rates established during that initial competition. However, without details on the original competition's scope and results, it's difficult to ascertain the extent to which it influenced current pricing.

How effectively were costs managed under this Cost Plus Fixed Fee (CPFF) contract over its multi-year duration?

CPFF contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Assessing the effectiveness of cost management requires reviewing the contractor's performance reports, audit findings, and any cost-saving initiatives implemented during the contract's 2006-2012 period. Without this detailed performance data, it's challenging to evaluate the taxpayer's value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

Address: 16761 VIA DEL CAMPO CT, SAN DIEGO, CA, 92127

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline