DoD Awards $28.7M for Composite Maintenance System Trainer to General Atomics Aeronautical Systems

Contract Overview

Contract Amount: $28,765,799 ($28.8M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-08-22

End Date: 2017-07-22

Contract Duration: 1,430 days

Daily Burn Rate: $20.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 1 COMPOSITE MAINTENANCE SYSTEM TRAINER (CMST) SUITE OF EQUIPMENT WITH AN OPTION FOR INTERIM CONTRACTOR SUPPORT (ICS).

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: 1 COMPOSITE MAINTENANCE SYSTEM TRAINER (CMST) SUITE OF EQUIPMENT WITH AN OPTION FOR INTERIM CONTRACTOR SUPPORT (ICS). Key points: 1. The contract is for a Composite Maintenance System Trainer (CMST) suite of equipment and interim contractor support. 2. General Atomics Aeronautical Systems, Inc. is the sole awardee, indicating a lack of competition. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 4. The award falls under the Aircraft Manufacturing sector, specifically NAICS code 336411.

Value Assessment

Rating: questionable

The total award amount is $28.7 million. Without comparable contract data for similar composite maintenance trainers, it is difficult to assess if this pricing is competitive or represents good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning there was no open bidding process. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this sole-source award raises concerns about whether the government secured the best possible price for the CMST equipment and support.

Public Impact

Military personnel will receive specialized training on composite maintenance procedures. The CMST is crucial for maintaining modern aircraft, ensuring operational readiness. This investment supports the U.S. Army's aviation fleet maintenance capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost Plus Incentive Fee contract type carries inherent cost overrun risk.
Lack of transparency in pricing due to no-bid award.

Positive Signals

Addresses a critical training need for composite maintenance.
Awardee has expertise in aerospace systems.
Contract supports U.S. Army aviation readiness.

Sector Analysis

The Aircraft Manufacturing sector (NAICS 336411) involves the production of aircraft and parts. Spending in this sector can be high due to the complexity and cost of aerospace technology. This award for a specialized trainer fits within this high-value sector.

Small Business Impact

This contract was awarded directly to General Atomics Aeronautical Systems, Inc. and there is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering the required equipment and services at a reasonable cost. Robust performance monitoring is essential.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on pricing
Sole-source award justification unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. 1 COMPOSITE MAINTENANCE SYSTEM TRAINER (CMST) SUITE OF EQUIPMENT WITH AN OPTION FOR INTERIM CONTRACTOR SUPPORT (ICS).

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 $28.8 million.

What is the period of performance?

Start: 2013-08-22. End: 2017-07-22.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. Further investigation into the specific justification documented by the Department of Defense is needed to understand the rationale.

How does the Cost Plus Incentive Fee structure impact the final cost?

A Cost Plus Incentive Fee (CPIF) contract allows the contractor to receive an agreed-upon fee based on performance targets, such as cost, schedule, or quality. While it incentivizes efficiency, it also means the final cost is not fixed. If the contractor exceeds cost targets, the government pays more, and if they meet or beat targets, the contractor earns a higher fee. Careful monitoring of performance metrics is crucial.

What is the long-term value of this trainer to the Army's maintenance capabilities?

The long-term value lies in ensuring the Army's aviation fleet, particularly those utilizing composite materials, can be effectively maintained. This trainer provides essential hands-on experience, reducing errors and improving the efficiency of maintenance personnel. This directly contributes to increased aircraft readiness and potentially lower lifecycle maintenance costs by preventing more significant issues.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ12R0319

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $29,888,528

Exercised Options: $28,765,799

Current Obligation: $28,765,799

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline