DoD Awards $12.5M for Highlighter Operations R&D to General Atomics
Contract Overview
Contract Amount: $12,541,495 ($12.5M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2007-04-01
End Date: 2008-03-31
Contract Duration: 365 days
Daily Burn Rate: $34.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HIGHLIGHTER OPERATIONS
Plain-Language Summary
Department of Defense obligated $12.5 million to GENERAL ATOMICS for work described as: HIGHLIGHTER OPERATIONS Key points: 1. High spending on R&D for specialized operations. 2. Sole-source award to General Atomics raises competition concerns. 3. Significant taxpayer investment in biotechnology research. 4. Contract duration of 365 days for a fixed-fee project.
Value Assessment
Rating: questionable
The contract value of $12.5 million for a 365-day duration suggests a substantial per-day cost. Without specific deliverables or benchmarks for R&D in this niche, assessing value is difficult. The cost-plus-fixed-fee structure can incentivize cost overruns.
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 leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition for a $12.5 million contract means taxpayers may have paid a premium for the research and development services provided by General Atomics.
Public Impact
Taxpayers fund advanced biotechnology research with potential military applications. The specific nature of 'Highlighter Operations' is not detailed, limiting public understanding of the investment. Reliance on a single contractor for critical R&D may pose long-term strategic risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus-fixed-fee contract
Positive Signals
- Investment in R&D
- Potential for technological advancement
Sector Analysis
This contract falls under Research and Development in Biotechnology (NAICS 541711). Spending in this sector is critical for national security and technological advancement, but often involves high costs and long development cycles.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense adequately justified the lack of competition and obtained fair pricing. Further oversight may be needed to track the R&D outcomes.
Related Government Programs
- Research and Development in Biotechnology
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for cost overruns with CPFF contract.
- Lack of transparency regarding R&D objectives.
- No indication of small business participation.
Tags
research-and-development-in-biotechnolog, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to GENERAL ATOMICS. HIGHLIGHTER OPERATIONS
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 $12.5 million.
What is the period of performance?
Start: 2007-04-01. End: 2008-03-31.
What specific technological advancements or operational capabilities are expected from the 'Highlighter Operations' R&D funded by this contract?
The provided data does not specify the expected outcomes of the 'Highlighter Operations' R&D. Typically, such contracts aim to develop new technologies or enhance existing capabilities for military applications. Without further details, it's impossible to assess the specific advancements or their potential impact on national security or operational effectiveness.
What is the justification for awarding this $12.5 million contract on a sole-source basis to General Atomics?
The justification for a sole-source award is not provided in the data. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of viable alternatives. For a contract of this value, a thorough justification is crucial to ensure fair and responsible use of taxpayer funds and to demonstrate that competition was not feasible.
How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness of this R&D project?
The cost-plus-fixed-fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While it can encourage R&D by covering costs, it may reduce the contractor's incentive to control expenses, potentially leading to higher overall costs compared to fixed-price contracts. The fixed fee, however, provides some cost certainty for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
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
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,541,495
Exercised Options: $12,541,495
Current Obligation: $12,541,495
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-01
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2008-01-17
More Contracts from General Atomics
- CVN 79 Emals Long Lead Time Material — $1.7B (Department of Defense)
- 200310!000495!1700!A8050 !naval AIR Warfare Center, Aircra!n6833503c0205 !A!N! !N! !20030728!20041028!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!66000!073!06!san Diego !SAN Diego !california!+000004883000!n!n!000107026822!1710!aircraft Landing Equipment !c9e!all Other Supplies and Equipme!2000!not Discernable or Classified !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !a!y!u!2!002!b! !A!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $928.2M (Department of Defense)
- CVN 78 Production Emals — $710.8M (Department of Defense)
- 200411!001061!1700!A8050 !naval AIR Warfare Center, Aircra!n6833504c0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!37800!029!34!lakehurst AIR Engine!ocean !NEW Jersey!+000016000000!n!n!000145621824!1710!aircraft Landing Equipment !a1c!other Aircraft Equipment !223 !cvn(x) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1g!a!n!z! ! !N!C!N! ! ! !z!b!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $590.2M (Department of Defense)
- CVN 81 Emals Pre-Production Planning — $511.0M (Department of Defense)
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)