DoD awards $26.4M for GENERATION II SYSTEM, a sole-source contract to General Atomics
Contract Overview
Contract Amount: $26,420,062 ($26.4M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2006-02-10
End Date: 2008-04-30
Contract Duration: 810 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: GENERATION II SYSTEM
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $26.4 million to GENERAL ATOMICS for work described as: GENERATION II SYSTEM Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 810 days suggests a significant project scope. 3. The contract falls under photographic and photocopying equipment manufacturing. 4. Awarded by the Department of the Army, indicating a defense-focused need. 5. No small business set-aside was applied to this procurement. 6. The contract was awarded by DCA, likely a contracting activity within the Army.
Value Assessment
Rating: questionable
Without a competitive bidding process, it is difficult to assess the value for money. The raw award amount of $26.4 million provides context, but without benchmarks or comparisons to similar systems procured competitively, a definitive value assessment is challenging. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning only one vendor, General Atomics, was solicited. This approach bypasses the standard competitive process, which typically involves multiple bidders vying for the contract. The absence of competition means there was no direct price comparison or incentive for vendors to offer their best pricing.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive environment.
Public Impact
The primary beneficiary is the Department of the Army, which will receive the GENERATION II SYSTEM. The system is intended for use within military operations, likely related to intelligence, surveillance, or reconnaissance. The contract was awarded to a company located in California, suggesting potential workforce implications in that region. The specific services delivered are tied to the development or provision of advanced photographic or related equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential cost savings.
- Lack of competition may result in a higher price than a competitively bid contract.
- The specific nature of the 'GENERATION II SYSTEM' is not detailed, making it hard to assess its necessity or alternatives.
Positive Signals
- Award to a known entity, General Atomics, may indicate specialized capabilities.
- The contract has a defined start and end date, providing a clear project timeline.
Sector Analysis
This contract falls within the broader defense sector, specifically related to the manufacturing of specialized equipment. The North American Industry Classification System (NAICS) code 333315, 'Photographic and Photocopying Equipment Manufacturing,' suggests a niche market. Benchmarking this specific award is difficult without more information on comparable 'GENERATION II' systems, but it represents a significant investment within its specialized sub-sector.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have any explicit subcontracting requirements for small businesses mentioned in the provided data. This means the primary awardee, General Atomics, will likely perform the majority of the work, with limited direct opportunities for small businesses to participate in this specific procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Defense Contract Audit Agency (DCAA) may also be involved in auditing costs. Transparency is limited due to the sole-source nature, and specific Inspector General (IG) jurisdiction would depend on any fraud, waste, or abuse allegations.
Related Government Programs
- Department of Defense Procurement
- Army Systems Acquisition
- Specialized Equipment Manufacturing
- Sole-Source Procurements
Risk Flags
- Sole-source award lacks competitive pricing.
- Limited transparency on system capabilities and necessity.
- Potential for higher cost to taxpayers due to lack of competition.
Tags
defense, department-of-the-army, general-atomics, sole-source, photographic-equipment-manufacturing, large-contract, california, dca, generation-ii-system
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to GENERAL ATOMICS. GENERATION II SYSTEM
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2006-02-10. End: 2008-04-30.
What is the specific function and intended use of the GENERATION II SYSTEM?
The provided data indicates the contract is for a 'GENERATION II SYSTEM' under NAICS code 333315 (Photographic and Photocopying Equipment Manufacturing). While the exact function is not detailed, this classification suggests the system is likely related to advanced imaging, surveillance, reconnaissance, or data capture technologies. Given the award by the Department of the Army, it is reasonable to infer its use is for military operational support, potentially in intelligence gathering or battlefield situational awareness. Further details on the system's capabilities, performance metrics, and operational requirements would be necessary for a complete understanding of its intended use.
What is the track record of General Atomics with the Department of Defense for similar systems?
General Atomics is a well-established defense contractor known for its work in areas such as unmanned aerial vehicles (UAVs), advanced electronics, and power systems. While specific details on their track record with 'GENERATION II SYSTEMS' are not provided in this data snippet, their history with the Department of Defense suggests they possess the technical expertise and manufacturing capabilities required for complex defense projects. A deeper dive into their contract history with the Army and other branches would reveal the extent and success of their previous engagements in related technological domains.
How does the $26.4 million award compare to similar photographic equipment contracts?
Benchmarking the $26.4 million award for the GENERATION II SYSTEM against similar photographic and photocopying equipment contracts is challenging without more specific comparative data. The 'GENERATION II SYSTEM' designation implies a potentially advanced or next-generation technology, which could command a higher price than standard equipment. Furthermore, this was a sole-source award, which typically results in higher prices compared to competitively procured systems. To provide a meaningful comparison, one would need to identify contracts for comparable advanced imaging or surveillance systems procured under similar conditions (e.g., sole-source vs. competitive) and from similar defense agencies.
What are the potential risks associated with a sole-source award of this magnitude?
The primary risk associated with a sole-source award of $26.4 million is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value for its investment. Other risks include a lack of innovation that might arise from competitive pressures, and potential vendor lock-in if the system is highly specialized. There's also a risk that the government may not be aware of more cost-effective or technologically superior alternatives that could have emerged in a competitive bidding process. Ensuring robust oversight and justification for the sole-source determination is crucial to mitigate these risks.
What is the historical spending pattern for photographic and photocopying equipment by the Department of the Army?
Historical spending patterns for photographic and photocopying equipment by the Department of the Army are not detailed in the provided data. However, the NAICS code 333315 suggests a category that can range from standard office equipment to highly specialized military-grade imaging and surveillance technology. Given the defense context, spending in this area is likely driven by operational needs for intelligence, reconnaissance, and situational awareness. Analyzing past contracts within this NAICS code, particularly those awarded to major defense contractors, would provide insight into the typical scale and nature of Army procurements in this sector.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Photographic and Photocopying Equipment Manufacturing
Product/Service Code: PHOTOGRAPHIC EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,420,062
Exercised Options: $26,420,062
Current Obligation: $26,420,062
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-02-10
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2008-03-18
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