DoD awards $52.2M for Advanced Arresting Gear Hardware for CVN 78 Testing

Contract Overview

Contract Amount: $52,249,593 ($52.2M)

Contractor: General Atomics

Awarding Agency: Department of Defense

Start Date: 2013-10-17

End Date: 2020-02-03

Contract Duration: 2,300 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADVANCED ARRESTING GEAR HARDWARE TO SUPPORT RALS LANDBASED UNIT FOR CVN 78 TESTING AND CERTIFICATION.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to GENERAL ATOMICS for work described as: ADVANCED ARRESTING GEAR HARDWARE TO SUPPORT RALS LANDBASED UNIT FOR CVN 78 TESTING AND CERTIFICATION. Key points: 1. Significant investment in naval aviation technology for carrier testing. 2. Sole-source award to General Atomics raises questions about competition. 3. Long contract duration (2013-2020) suggests complex development or integration. 4. Focus on testing and certification indicates a critical, high-stakes phase.

Value Assessment

Rating: questionable

The award of over $52 million for specialized hardware warrants scrutiny. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for a substantial contract may result in taxpayers paying a premium for this critical naval technology.

Public Impact

Supports the development and testing of advanced arresting gear for Ford-class carriers. Ensures readiness and certification of a crucial component for naval aviation operations. Potential impact on future carrier deployment schedules and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often driven by defense procurement needs for specialized, high-technology components.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is General Atomics, a large defense contractor. Further analysis would be needed to determine small business participation as subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the government received the best possible value. Tracking the performance and cost over the contract's duration is crucial.

Related Government Programs

Risk Flags

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to GENERAL ATOMICS. ADVANCED ARRESTING GEAR HARDWARE TO SUPPORT RALS LANDBASED UNIT FOR CVN 78 TESTING AND CERTIFICATION.

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 Navy).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2013-10-17. End: 2020-02-03.

What justification was provided for the sole-source award of this significant contract?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For advanced or highly specialized systems like arresting gear, this might be due to proprietary technology, unique capabilities, or existing integration requirements with the platform (CVN 78). A thorough review of the justification documentation is necessary to validate the necessity of foregoing competition.

How does the cost of this hardware compare to industry benchmarks for similar advanced arresting gear systems?

Benchmarking the cost is challenging without competitive data. However, the $52.2 million award for hardware supporting testing and certification suggests a high unit cost, reflecting the advanced technology and specialized nature of naval arresting gear. Comparing it to publicly available data on similar systems, if any exist, or to internal government cost estimates would be necessary for a robust assessment.

What is the long-term operational and cost-effectiveness impact of this specific hardware on the CVN 78?

The long-term impact hinges on the reliability, maintainability, and performance of the Advanced Arresting Gear (AAG) hardware. If this hardware proves effective and durable, it could enhance flight deck safety and operational tempo for the CVN 78, potentially reducing launch/recovery cycle times and associated personnel costs. Conversely, any deficiencies could lead to increased maintenance, downtime, and reduced operational readiness.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,249,593

Exercised Options: $52,249,593

Current Obligation: $52,249,593

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $9,055,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833511G0003

IDV Type: BOA

Timeline

Start Date: 2013-10-17

Current End Date: 2020-02-03

Potential End Date: 2020-02-03 00:00:00

Last Modified: 2020-01-24

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