DoD's $83M Warrior UAS support contract awarded to General Atomics without competition

Contract Overview

Contract Amount: $134,186,625 ($134.2M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-12-18

End Date: 2016-05-11

Contract Duration: 1,971 days

Daily Burn Rate: $68.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW CONTRACTOR LOGISTICS SUPPORT (CLS)SUPPORTING WARRIOR A / WARRIOR BLOCK 0 UAS SUPPORTING OPERATION ENDURING FREEDOM AND OPERATION NEW DAWN. OBLIGATED $82,983,381

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $134.2 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: NEW CONTRACTOR LOGISTICS SUPPORT (CLS)SUPPORTING WARRIOR A / WARRIOR BLOCK 0 UAS SUPPORTING OPERATION ENDURING FREEDOM AND OPERATION NEW DAWN. OBLIGATED $82,983,381 Key points: 1. Contract awarded to incumbent provider, raising questions about competitive pricing. 2. Significant funding obligated for logistics support of critical unmanned aerial systems. 3. Lack of competition may limit opportunities for cost savings and innovation. 4. Contract duration suggests a long-term need for these specialized services. 5. Performance context tied to ongoing operations in Afghanistan. 6. Sector positioning within aircraft manufacturing and defense logistics.

Value Assessment

Rating: questionable

The contract's value of $82,983,381 over its period of performance warrants scrutiny, especially given the lack of competition. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or alternative providers. The cost-plus-fixed-fee structure, while common in complex defense procurements, can lead to cost overruns if not managed diligently. A comparison to similar logistics support contracts for UAS platforms would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one company, General Atomics Aeronautical Systems, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the necessary capabilities or proprietary technology, they generally result in less price discovery and potentially higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government missed an opportunity to leverage competition to secure better terms and potentially lower costs.

Public Impact

Provides essential logistical support for the Warrior A/Block 0 Unmanned Aerial System (UAS). Ensures operational readiness of critical intelligence, surveillance, and reconnaissance (ISR) assets. Supports ongoing military operations, specifically Operation Enduring Freedom and Operation New Dawn in Afghanistan. Maintains the functionality and deployment capability of advanced defense technology. Indirectly supports the warfighter by ensuring the availability of vital equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award limits transparency in pricing.
Potential for contractor lock-in due to specialized nature of support.

Positive Signals

Ensures continuity of essential support for critical defense systems.
Awarded to a known entity with established expertise in UAS.
Supports ongoing military operations vital to national security.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft manufacturing and related support services. The market for UAS logistics support is specialized, often dominated by the original equipment manufacturers due to the proprietary nature of the technology and the need for in-depth technical knowledge. General Atomics is a significant player in the UAS market. Comparable spending benchmarks would likely involve other large-scale logistics contracts for complex military platforms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the sole-source nature and the specialized services provided by General Atomics, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued within this specific award. The focus was on securing direct support from the prime contractor.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's established procurement and contract management regulations. The Army Contracting Command would be responsible for monitoring performance and expenditures. While specific Inspector General (IG) involvement is not detailed, the DoD IG has broad jurisdiction over defense spending. Transparency is limited by the sole-source nature, but contract modifications and performance reports would be subject to internal review.

Related Government Programs

Unmanned Aerial Systems (UAS) Procurement
Defense Logistics Support Services
Operation Enduring Freedom Support
Aircraft Manufacturing Support
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms

Risk Flags

Sole-source award
Lack of competition
Cost-plus-fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $134.2 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. NEW CONTRACTOR LOGISTICS SUPPORT (CLS)SUPPORTING WARRIOR A / WARRIOR BLOCK 0 UAS SUPPORTING OPERATION ENDURING FREEDOM AND OPERATION NEW DAWN. OBLIGATED $82,983,381

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 $134.2 million.

What is the period of performance?

Start: 2010-12-18. End: 2016-05-11.

What is the track record of General Atomics Aeronautical Systems, Inc. in providing logistics support for UAS platforms?

General Atomics Aeronautical Systems, Inc. (GA-ASI) has a well-established track record as a prime contractor and manufacturer of Unmanned Aerial Systems (UAS), including the Predator and Reaper series, which are widely used by the U.S. military and allied nations. Their expertise extends beyond manufacturing to encompass comprehensive support services, including logistics, maintenance, training, and system integration. GA-ASI has been a key player in the development and sustainment of UAS technology for decades, supporting numerous operational deployments. This specific contract for the Warrior A/Block 0 UAS builds upon their existing capabilities and experience with similar platforms, indicating a strong familiarity with the system's requirements and operational context.

How does the pricing of this contract compare to similar logistics support contracts for UAS?

Directly comparing the pricing of this $82.9 million contract to similar logistics support contracts for UAS is challenging without access to detailed pricing breakdowns and market data. The contract was awarded on a sole-source basis to General Atomics Aeronautical Systems, Inc., which limits the ability to benchmark against competitive bids. Cost-plus-fixed-fee (CPFF) contracts, like this one, can vary significantly based on the scope of services, labor rates, overhead, and profit margins. To conduct a robust comparison, one would need to analyze contracts for comparable UAS platforms (e.g., size, complexity, operational tempo) awarded through competitive processes, or examine GA-ASI's own pricing for similar services on other contracts, if publicly available. The absence of competition inherently makes value-for-money assessment more difficult.

What are the primary risks associated with a sole-source award for critical logistics support?

The primary risks associated with a sole-source award for critical logistics support include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and the risk of contractor lock-in. Without competition, the government has less leverage to negotiate favorable terms and pricing. Furthermore, if the sole-source provider experiences financial difficulties or operational issues, the government may have limited alternatives for securing essential support, potentially impacting mission readiness. There's also a risk that the contractor may not be as motivated to proactively identify cost-saving measures or performance enhancements as they might be in a competitive environment.

How effective has the Warrior A/Block 0 UAS been in supporting operations like Enduring Freedom and New Dawn?

The Warrior A/Block 0 UAS, also known as the Sky Warrior, was developed as an armed reconnaissance platform intended to provide persistent intelligence, surveillance, and reconnaissance (ISR) capabilities, particularly for special operations forces. Its deployment in Operation Enduring Freedom and Operation New Dawn aimed to offer enhanced situational awareness and strike capabilities in complex environments. While specific operational effectiveness metrics are often classified, the continued need for logistics support under this contract suggests the platform played a role in fulfilling ISR requirements during these conflicts. However, the Warrior program faced developmental challenges and was eventually superseded by other UAS programs, indicating a mixed record of overall program success and long-term strategic fit compared to evolving requirements and competing technologies.

What is the historical spending trend for logistics support of the Warrior A/Block 0 UAS program?

Historical spending data specifically isolated for the Warrior A/Block 0 UAS logistics support prior to this $82.9 million contract (2010-2016) is not readily available in the provided data snippet. This contract represents a significant obligation for the sustainment of the platform during a specific period. To understand the broader historical spending trend, one would need to examine prior contracts awarded for the development, procurement, and sustainment of the Warrior A/Block 0 UAS, potentially dating back to its initial fielding. Analyzing the total lifecycle cost and spending patterns across different phases of the program would provide a more comprehensive view of the government's investment in this particular UAS platform's support.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Company: General Atomics (UEI: 859181984)

Address: 14200 KIRKHAM WAY, POWAY, CA, 92064

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: $134,186,625

Exercised Options: $134,186,625

Current Obligation: $134,186,625

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline