DHS awards $51.6M contract to General Atomics for UAS hardware, raising competition concerns

Contract Overview

Contract Amount: $51,662,575 ($51.7M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-05-21

End Date: 2018-10-31

Contract Duration: 3,085 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ON JANUARY 11, 2010, THE UAS PROGRAM OFFICE RECEIVED AN ADVANCED PROPOSAL FOR DHS/CBP QUICK BUY HARDWARE REQUIREMENTS FOR UNMANNED AIRCRAFT SYSTEMS (UAS) FROM GENERAL ATOMICS (GA) AERONAUTICAL SYSTEMS INC.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: ON JANUARY 11, 2010, THE UAS PROGRAM OFFICE RECEIVED AN ADVANCED PROPOSAL FOR DHS/CBP QUICK BUY HARDWARE REQUIREMENTS FOR UNMANNED AIRCRAFT SYSTEMS (UAS) FROM GENERAL ATOMICS (GA) AERONAUTICAL SYSTEMS INC. Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition may lead to suboptimal pricing. 3. Potential for increased costs due to sole-source nature. 4. Focus on aircraft manufacturing sector for homeland security.

Value Assessment

Rating: questionable

The contract value of $51.6M for UAS hardware is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to General Atomics. This limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for this hardware, as there was no market pressure to drive down prices.

Public Impact

Enhances border security capabilities through advanced drone technology. Supports the operational needs of U.S. Customs and Border Protection. Potential for technological advancements in unmanned aircraft systems. Raises questions about the government's procurement strategy for critical defense assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Supports critical homeland security mission
Procurement of advanced technology

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for Unmanned Aircraft Systems (UAS). Spending in this area is crucial for defense and homeland security, but often involves high R&D costs and specialized production.

Small Business Impact

The data indicates this contract was awarded to General Atomics Aeronautical Systems, Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government received the best possible value and that future procurements explore competitive options.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited vendor options
Long contract duration (2010-2018)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. ON JANUARY 11, 2010, THE UAS PROGRAM OFFICE RECEIVED AN ADVANCED PROPOSAL FOR DHS/CBP QUICK BUY HARDWARE REQUIREMENTS FOR UNMANNED AIRCRAFT SYSTEMS (UAS) FROM GENERAL ATOMICS (GA) AERONAUTICAL SYSTEMS INC.

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2010-05-21. End: 2018-10-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's presumed that the agency determined General Atomics was the only or best source for these specific UAS hardware requirements at the time of procurement.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts of this magnitude carry risks of inflated pricing due to the absence of competition, potential for vendor complacency, and missed opportunities for innovation that could arise from a competitive bidding process. It also limits the government's leverage in negotiations.

How does this contract contribute to the overall effectiveness of the UAS program?

This contract directly contributes to the effectiveness of the UAS program by providing essential hardware. The specific impact depends on the quality and performance of the hardware procured, but it is intended to enhance the operational capabilities of the U.S. Customs and Border Protection.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Company: General Atomics (UEI: 859181984)

Address: 14200 KIRKHAM WAY, POWAY, CA, 92064

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $51,662,575

Exercised Options: $51,662,575

Current Obligation: $51,662,575

Actual Outlays: $-192

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline