Army awards $36M contract for unmanned aircraft systems to AeroVironment, Inc
Contract Overview
Contract Amount: $35,991,166 ($36.0M)
Contractor: Aerovironment, Inc
Awarding Agency: Department of Defense
Start Date: 2022-01-27
End Date: 2025-09-30
Contract Duration: 1,342 days
Daily Burn Rate: $26.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS UZBEKISTAN PUMA AE3.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to AEROVIRONMENT, INC for work described as: FMS UZBEKISTAN PUMA AE3. Key points: 1. Contract awarded for unmanned aircraft systems, indicating a need for aerial surveillance and reconnaissance capabilities. 2. The contract is a definitive contract, suggesting a long-term commitment between the agency and the contractor. 3. The fixed-price nature of the contract helps to control costs for the government. 4. The contract duration of over three years implies a significant operational requirement. 5. The specific North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a specialized sector. 6. The contract is not set aside for small businesses, suggesting the scale or nature of the requirement may favor larger entities.
Value Assessment
Rating: fair
The contract value of $35.99 million for unmanned aircraft systems over a period of approximately three years requires careful benchmarking. Without specific details on the number of units or capabilities, direct comparison to similar contracts is challenging. However, the fixed-price structure is generally favorable for cost control. Further analysis would involve comparing the per-unit cost of these systems against industry standards and other government procurements for comparable unmanned aerial vehicles.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. Sole-source awards typically occur when only one vendor possesses the necessary capabilities, technology, or when urgent needs cannot be met through competition. This lack of competition can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: The absence of competition for this $35.99 million contract means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process.
Public Impact
The Department of the Army is the primary beneficiary, acquiring critical unmanned aircraft systems. These systems are likely to be used for intelligence, surveillance, and reconnaissance (ISR) missions. The contract supports the operational readiness and technological advancement of military aviation capabilities. The geographic impact is likely global, supporting deployed forces, though specific deployment locations are not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in a higher price than if the contract were competed.
- Sole-source awards can reduce transparency in the procurement process.
- Dependence on a single contractor for critical systems can pose supply chain risks.
Positive Signals
- AeroVironment, Inc. is a known leader in unmanned aircraft systems, suggesting a high likelihood of successful delivery.
- The definitive contract structure provides stability for both the government and the contractor.
- The firm fixed-price type helps manage budget predictability.
Sector Analysis
The unmanned aircraft systems (UAS) market is a rapidly growing segment within the aerospace and defense industry. This contract falls under the Aircraft Manufacturing (NAICS 336411) sector. The global UAS market is valued in the billions of dollars, with significant investment from military and commercial entities. This procurement by the Department of Defense aligns with broader trends of increasing reliance on drone technology for various applications, including ISR, logistics, and combat support.
Small Business Impact
This contract was not awarded as a small business set-aside. The nature of advanced unmanned aircraft systems and the specific capabilities of AeroVironment, Inc. likely led to this decision. There is no explicit information regarding subcontracting opportunities for small businesses within this award, which could limit their direct participation in this specific contract.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Army contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The contract's performance will likely be monitored through regular reporting requirements and inspections. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Unmanned Aerial Vehicles (UAVs)
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems
- Aerospace Manufacturing
- Department of Defense Procurement
Risk Flags
- Sole-source award may lead to higher costs.
- Lack of competition limits price discovery.
- Potential for contractor dependency.
Tags
defense, department-of-defense, department-of-the-army, aircraft-manufacturing, unmanned-aircraft-systems, definitive-contract, firm-fixed-price, sole-source, aerovironment-inc, virginia, intelligence-surveillance-reconnaissance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to AEROVIRONMENT, INC. FMS UZBEKISTAN PUMA AE3.
Who is the contractor on this award?
The obligated recipient is AEROVIRONMENT, 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 $36.0 million.
What is the period of performance?
Start: 2022-01-27. End: 2025-09-30.
What is AeroVironment, Inc.'s track record with the Department of Defense for similar unmanned aircraft systems?
AeroVironment, Inc. has a long-standing relationship with the Department of Defense, particularly the Army, for providing various unmanned aircraft systems (UAS). They are well-known for their Raven, Puma, and Wasp small UAS, which have seen extensive use in recent conflicts. The company has received numerous contracts for the development, production, and sustainment of these systems. Their track record indicates a strong capability in delivering reliable and effective UAS solutions that meet military operational requirements. This history suggests a high degree of confidence from the DoD in AeroVironment's ability to fulfill the current contract for Puma AE3 systems.
How does the value of this contract compare to other recent procurements of unmanned aircraft systems by the DoD?
The $35.99 million value for this definitive contract for Puma AE3 unmanned aircraft systems is within a typical range for procurements of this nature. While specific unit costs are not publicly detailed, the total award amount over a multi-year period (January 2022 to September 2025) suggests a significant quantity or a comprehensive support package. The DoD procures a wide array of UAS, from small, man-portable systems to large, high-altitude platforms, with contract values varying accordingly. Compared to contracts for larger, more complex UAS platforms, this award appears moderate. However, for the specific class of small, tactical UAS like the Puma AE, it represents a substantial investment, reflecting the ongoing demand for such capabilities.
What are the primary risks associated with this sole-source contract award?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, the government may not achieve the best possible price. Another risk is contractor dependency; the Army may become reliant on AeroVironment for this specific system, potentially limiting future flexibility or innovation from other sources. Furthermore, sole-source awards can sometimes indicate a lack of market research or an inability to define requirements in a way that allows for broader competition, which could be a systemic risk. Finally, if AeroVironment faces production issues or delays, the government has limited alternative options in the short term.
What is the expected program effectiveness and impact of these unmanned aircraft systems?
The expected program effectiveness of the Puma AE3 unmanned aircraft systems is high, given their established role in military operations. These systems are designed for intelligence, surveillance, and reconnaissance (ISR) missions, providing real-time aerial imagery and data to ground forces. Their effectiveness lies in enhancing situational awareness, enabling better decision-making, and reducing risk to personnel by performing dangerous reconnaissance tasks. The Puma AE is known for its versatility, including its ability to launch and recover from land or sea, and its extended endurance. The impact is significant, improving the operational capabilities of units equipped with these systems, potentially leading to more successful mission outcomes and increased force protection.
How has federal spending on unmanned aircraft systems evolved over the past five years?
Federal spending on unmanned aircraft systems (UAS) has seen a consistent and significant increase over the past five years across multiple agencies, primarily the Department of Defense. This growth reflects the recognized value of UAS technology for ISR, logistics, and other military applications. Budgets have shifted towards acquiring more advanced platforms, improving sensor payloads, and investing in data analysis capabilities. While specific figures fluctuate annually based on program priorities and budget allocations, the overall trend indicates a sustained commitment to expanding and modernizing the nation's UAS inventory. This includes both large-scale platform procurements and investments in research and development for next-generation systems.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 900 INNOVATORS WAY, SIMI VALLEY, CA, 93065
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,991,166
Exercised Options: $35,991,166
Current Obligation: $35,991,166
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-01-27
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-03-03
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