DoD awards $45M for Gray Eagle engineering services to General Atomics, a sole-source contract
Contract Overview
Contract Amount: $44,949,755 ($44.9M)
Contractor: General Atomics Aeronautical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-02-16
End Date: 2024-04-14
Contract Duration: 1,153 days
Daily Burn Rate: $39.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT TECHNOLOGY CENTER SYSTEM INTEGRATION LAB (JSIL)/GRAY EAGLE MODELING, NAVIGATION AND INTEGRATION (GEMNI) SUPPORT FY21 GRAY EAGLE ENGINEERING SERVICES
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $44.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: JOINT TECHNOLOGY CENTER SYSTEM INTEGRATION LAB (JSIL)/GRAY EAGLE MODELING, NAVIGATION AND INTEGRATION (GEMNI) SUPPORT FY21 GRAY EAGLE ENGINEERING SERVICES Key points: 1. General Atomics is the sole provider for this specialized Gray Eagle support. 2. The contract value is $44.95M for engineering services. 3. Risk is moderate due to sole-source nature and potential for cost overruns. 4. The sector is Aircraft Manufacturing, a critical defense component.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking is difficult without comparable sole-source contracts.
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 potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher prices than if multiple vendors had bid.
Public Impact
Ensures continued support for the Gray Eagle drone program. Potential for higher costs due to sole-source award. Impacts the operational readiness of Army aviation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Essential for critical defense platform
- Long-term contract duration
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is vital for national defense. Spending benchmarks for specialized drone support can vary significantly based on technology and platform.
Small Business Impact
This contract was awarded to a large business, General Atomics Aeronautical Systems, Inc. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight is crucial to ensure cost control and performance given the sole-source and cost-plus nature.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Potential for vendor lock-in.
- Lack of transparency in pricing due to no-bid nature.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.9 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. JOINT TECHNOLOGY CENTER SYSTEM INTEGRATION LAB (JSIL)/GRAY EAGLE MODELING, NAVIGATION AND INTEGRATION (GEMNI) SUPPORT FY21 GRAY EAGLE ENGINEERING SERVICES
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 $44.9 million.
What is the period of performance?
Start: 2021-02-16. End: 2024-04-14.
What is the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of viable alternatives. For the Gray Eagle program, General Atomics is likely the original equipment manufacturer or possesses unique expertise. A thorough review would confirm if any other entities could provide equivalent support and why they were not considered.
How is the 'fixed fee' component of the Cost Plus Fixed Fee contract determined and managed to ensure fair pricing?
The fixed fee in a CPFF contract is negotiated upfront and represents the contractor's profit. It's intended to be fixed regardless of actual costs incurred. Effective management involves rigorous oversight of direct and indirect costs, ensuring they are reasonable and allocable to the contract. Regular audits and performance reviews are essential to prevent cost creep and ensure the fee remains fair.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Key performance indicators would likely include on-time delivery of engineering support, adherence to technical specifications, successful integration of modifications, and responsiveness to technical issues. Performance is typically measured through regular progress reports, technical reviews, and potentially user feedback from the operational units utilizing the Gray Eagle system.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14200 KIRKHAM WAY, POWAY, CA, 92064
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,949,755
Exercised Options: $44,949,755
Current Obligation: $44,949,755
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,228,230
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ18D0138
IDV Type: IDC
Timeline
Start Date: 2021-02-16
Current End Date: 2024-04-14
Potential End Date: 2024-04-14 12:04:00
Last Modified: 2025-04-02
More Contracts from General Atomics Aeronautical Systems, Inc.
- Requirement IS for the Procurement of Performance Based Logistics Support Services for the MQ-1C Gray Eagle Unmanned Aircraft System — $1.9B (Department of Defense)
- Award of Undefinitized Contract Action (UCA) for FY 12 MQ-1C Gray Eagle Program of Record and Quick Reaction Capability Performance-Based Logistics Product Support — $1.1B (Department of Defense)
- FY 13 Full Rate Production of the Gray Eagle Unmanned Aircraft System and FY 12 Backfill Requirements — $1.1B (Department of Defense)
- FY17 Gray Eagle Performance Based Logistics (PBL) Effort — $936.9M (Department of Defense)
- Federal Contract — $646.6M (Department of Defense)
View all General Atomics Aeronautical Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)