DoD Awards $101.5M Contract for UAS Logistics Support, Facing Potential Value Concerns

Contract Overview

Contract Amount: $184,909,603 ($184.9M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-12-17

End Date: 2016-06-30

Contract Duration: 1,657 days

Daily Burn Rate: $111.6K/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/BLOCK 0 UNMANNED AIRCRAFT SYSTEMS (UAS) CURRENTLY AT FOUR DEPLOYED SITES IN AFGHANISTAIN AND TWO TRAINING SITES IN UNITED STATES. THIS IS A UCA. CEILING PRICE IS $101,491,312. OBLIGATED 12% ($12,000,000).

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $184.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: NEW CONTRACTOR LOGISTICS SUPPORT (CLS) SUPPORTING WARRIOR A/BLOCK 0 UNMANNED AIRCRAFT SYSTEMS (UAS) CURRENTLY AT FOUR DEPLOYED SITES IN AFGHANISTAIN AND TWO TRAINING SITES IN UNITED STATES. THIS IS A UCA. CEILING PRICE IS $101,491,312. OBLIGATED 12% ($12,000,000). Key points: 1. The contract supports critical Unmanned Aircraft Systems (UAS) at deployed and training sites. 2. General Atomics Aeronautical Systems, Inc. is the sole awardee, raising competition questions. 3. A significant portion of the ceiling price remains unawarded, indicating potential for future spending. 4. The sector is Aircraft Manufacturing, with a focus on specialized defense systems.

Value Assessment

Rating: questionable

The contract ceiling is $101.5M with only $12M obligated, making a definitive value assessment difficult. Without more data on task orders and performance, it's hard to benchmark against similar logistics support contracts for UAS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this sole-source contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Supports critical military operations with advanced drone technology. Ensures readiness and operational capability for deployed UAS. Potential for increased costs due to sole-source nature. Long-term sustainment of high-value defense assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract ceiling with low initial obligation suggests potential for significant future spending.
Lack of transparency in pricing due to sole-source nature.

Positive Signals

Supports critical defense systems (UAS).
Addresses logistics needs for deployed assets.
Contractor has established expertise in UAS.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting Unmanned Aircraft Systems (UAS). Spending in this area is crucial for modern defense capabilities, but often involves high costs due to specialized technology and limited suppliers.

Small Business Impact

The data indicates this contract was awarded to General Atomics Aeronautical Systems, Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract's sole-source nature warrants close oversight to ensure fair pricing and effective performance. Regular reviews of task orders and expenditures will be crucial for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award.
High contract ceiling, low initial obligation.
Lack of competition.
Potential for cost overruns.
Limited transparency in pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $184.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. NEW CONTRACTOR LOGISTICS SUPPORT (CLS) SUPPORTING WARRIOR A/BLOCK 0 UNMANNED AIRCRAFT SYSTEMS (UAS) CURRENTLY AT FOUR DEPLOYED SITES IN AFGHANISTAIN AND TWO TRAINING SITES IN UNITED STATES. THIS IS A UCA. CEILING PRICE IS $101,491,312. OBLIGATED 12% ($12,000,000).

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 $184.9 million.

What is the period of performance?

Start: 2011-12-17. End: 2016-06-30.

What is the projected breakdown of costs for the different CLS tasks, and how does this compare to industry benchmarks for similar UAS support?

Without detailed task order breakdowns and performance metrics, it's challenging to assess the cost-effectiveness of this sole-source contract. A comparative analysis against industry benchmarks for similar UAS logistics support would require access to more granular data on labor rates, parts, and overhead, which is not publicly available for this award.

What are the specific risks associated with relying on a sole-source provider for critical UAS logistics, particularly in deployed environments?

The primary risks of a sole-source provider include potential price gouging, lack of innovation due to absent competition, and vendor lock-in, which can limit flexibility. In deployed environments, this reliance also poses a supply chain risk if the sole provider experiences disruptions, potentially impacting mission readiness and operational continuity.

How effectively is this contract ensuring the operational readiness and longevity of the Warrior A/Block 0 UAS fleet?

The effectiveness of this contract in ensuring operational readiness and longevity hinges on the contractor's performance and the government's oversight. While the contract aims to provide necessary support, the sole-source nature and limited initial obligation make it difficult to definitively assess effectiveness without performance data and independent evaluations of the support provided.

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: $184,909,603

Exercised Options: $184,909,603

Current Obligation: $184,909,603

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline