DHS Spends $56M on UAS Services from General Atomics, Lacking Competition

Contract Overview

Contract Amount: $56,097,797 ($56.1M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-01

End Date: 2013-03-13

Contract Duration: 986 days

Daily Burn Rate: $56.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UAS OPERATIONAL AND MAINTENANCE SERVICES

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: UAS OPERATIONAL AND MAINTENANCE SERVICES Key points: 1. Significant spending on Unmanned Aircraft System (UAS) operational and maintenance services. 2. Sole-source award to General Atomics Aeronautical Systems, Inc. raises competition concerns. 3. Contract duration of nearly 1000 days suggests long-term reliance. 4. Services fall under 'Other Support Activities for Air Transportation' sector.

Value Assessment

Rating: questionable

The total award amount of $56M over approximately 3 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar UAS maintenance contracts.

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 lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in inflated prices, directly impacting taxpayer funds negatively.

Public Impact

Enhances border security capabilities through advanced aerial surveillance. Supports critical missions for U.S. Customs and Border Protection. Potential for increased operational efficiency in monitoring vast territories. Reliance on a single provider could create vulnerabilities in service continuity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Time and Materials pricing

Positive Signals

Supports critical national security missions
Utilizes advanced technology (UAS)

Sector Analysis

This contract falls under the 'Other Support Activities for Air Transportation' sector, specifically related to the operation and maintenance of Unmanned Aircraft Systems. Spending benchmarks for specialized UAS services can vary widely, but significant sole-source awards warrant scrutiny.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the awardee is a large corporation. This suggests limited direct opportunity for small businesses within this specific contract vehicle.

Oversight & Accountability

The 'NOT COMPETED' status and sole-source nature of this award necessitate robust oversight to ensure the government is receiving fair value and that the necessity for sole-sourcing is well-documented and justified.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited vendor options
Time and Materials contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. UAS OPERATIONAL AND MAINTENANCE SERVICES

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 $56.1 million.

What is the period of performance?

Start: 2010-07-01. End: 2013-03-13.

What was the justification for awarding this contract on a sole-source basis, and were alternatives explored?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically cite reasons like unique capabilities, urgent needs, or lack of market availability. Without this justification, it's impossible to assess if taxpayers received fair value or if the government missed opportunities to leverage competitive market forces for better pricing and innovation.

How does the per-unit cost of UAS maintenance and operation compare to industry benchmarks for similar services?

Benchmarking the per-unit cost is essential for evaluating value. Without competitive bids, comparing General Atomics' pricing against industry standards for similar UAS platforms and maintenance services is difficult. This comparison would reveal potential overspending or confirm reasonable costs, informing future procurement strategies and negotiations.

What are the long-term implications of relying on a single provider for critical UAS operational and maintenance services?

Long-term reliance on a sole-source provider can create significant risks, including vendor lock-in, potential price escalations, and reduced flexibility. It also limits opportunities for technological upgrades or service improvements that might come from a competitive market. Assessing these implications is vital for national security and efficient resource allocation.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,590,786

Exercised Options: $56,097,797

Current Obligation: $56,097,797

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline