DHS awarded $21.1M to General Atomics for mobility ground control stations and associated equipment

Contract Overview

Contract Amount: $21,097,054 ($21.1M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-03-09

End Date: 2013-11-09

Contract Duration: 976 days

Daily Burn Rate: $21.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MOBILITY GROUND CONTROL STATIONS, GROUND DATA TERMINALS, SOFTWARE INTEGRATION LAB AND OTHER ASSOCIATED EQUIPMENT.

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: MOBILITY GROUND CONTROL STATIONS, GROUND DATA TERMINALS, SOFTWARE INTEGRATION LAB AND OTHER ASSOCIATED EQUIPMENT. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 976 days suggests a significant project scope. 3. The specific nature of 'mobility ground control stations' indicates a critical operational need. 4. The absence of small business set-asides warrants further investigation into subcontracting opportunities. 5. The firm-fixed-price structure aims to control costs but may shift risk to the contractor. 6. This award falls under the Aircraft Manufacturing NAICS code, suggesting a focus on aviation-related systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar sole-source awards for specialized ground control systems. The total award amount of $21.1 million over approximately 32 months (976 days) suggests a substantial investment. However, the lack of competitive bidding means there's no direct market validation of the pricing. Further analysis would require understanding the specific technological components and their market prices, as well as the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the government's requirements. The lack of competition means that taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to drive down costs. The government may have paid a premium due to the absence of competing offers.

Public Impact

The U.S. Customs and Border Protection (CBP) benefits from enhanced capabilities in managing and controlling mobile ground assets. Services delivered include the provision of mobility ground control stations, ground data terminals, and software integration lab services. The contract's geographic impact is likely focused on operational areas managed by CBP, potentially along borders or critical infrastructure. Workforce implications may include the need for specialized personnel to operate and maintain the new ground control systems.

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 higher prices for taxpayers.
Specific details on performance metrics and success criteria are not readily available.
Potential for vendor lock-in due to specialized nature of the equipment.

Positive Signals

Addresses a critical operational need for CBP's mobility assets.
Firm-fixed-price contract provides cost certainty for the government.
General Atomics has a track record in aerospace and defense, suggesting technical capability.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically related to the production and integration of ground support and control systems for aerial assets. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and stringent performance requirements. Comparable spending benchmarks would likely be found within defense and homeland security procurements for unmanned aerial systems (UAS) or other advanced aviation platforms, where sophisticated ground control infrastructure is essential.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there is no direct analysis of small business set-aside provisions. However, the sole-source nature of the award further reduces the likelihood of significant subcontracting opportunities for small businesses unless explicitly mandated or voluntarily pursued by the prime contractor, General Atomics Aeronautical Systems, Inc. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. Accountability measures would be defined by the contract's terms and conditions, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award and the proprietary aspects of the technology involved. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Unmanned Aircraft Systems (UAS) Procurement
Aerospace and Defense Manufacturing
Homeland Security Technology
Border Surveillance Equipment
Command and Control Systems

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.1 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. MOBILITY GROUND CONTROL STATIONS, GROUND DATA TERMINALS, SOFTWARE INTEGRATION LAB AND OTHER ASSOCIATED EQUIPMENT.

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 $21.1 million.

What is the period of performance?

Start: 2011-03-09. End: 2013-11-09.

What is the specific operational capability provided by these 'mobility ground control stations' and 'ground data terminals' for U.S. Customs and Border Protection?

These systems are crucial for the operation and management of CBP's aerial assets, likely including unmanned aircraft systems (UAS) or other specialized aircraft. 'Mobility ground control stations' provide the interface and command capabilities for pilots or operators to control aircraft remotely, manage flight paths, and monitor sensor data. 'Ground data terminals' facilitate the communication link between the aircraft and the ground station, transmitting telemetry, video feeds, and control commands. This technology enhances CBP's ability to conduct surveillance, interdiction, and other border security missions by providing persistent aerial presence and real-time situational awareness.

Given the sole-source nature, how can the government ensure it received fair market value for this $21.1 million award?

Ensuring fair market value in sole-source procurements is challenging but can be addressed through several mechanisms. The contracting agency, CBP, would have likely conducted extensive market research to justify the sole-source determination and to establish a reasonable price. This might involve analyzing historical pricing for similar systems, obtaining cost proposals from the contractor and scrutinizing their cost elements (labor, materials, overhead), and potentially using independent government cost estimates. Negotiation plays a key role; the contracting officer would aim to negotiate the best possible price based on the available information, even without direct competition. However, the absence of competing bids inherently limits the government's leverage.

What are the potential risks associated with a sole-source award for critical operational equipment like ground control stations?

Sole-source awards carry inherent risks. The primary risk is the potential for inflated pricing due to the lack of competitive pressure, meaning taxpayers may pay more than necessary. Another risk is vendor lock-in, where the government becomes dependent on a single supplier for critical technology, potentially limiting future flexibility and innovation. If the sole-source contractor experiences financial difficulties or operational issues, it could significantly disrupt the government's operations. Furthermore, the lack of transparency in the procurement process can raise concerns about fairness and potential impropriety, even if none exists.

How does this contract align with CBP's broader mission and technology modernization efforts?

This contract directly supports CBP's mission of preventing terrorism, contraband, and illegal immigration while facilitating lawful international travel and trade. Modernizing technology is a key component of CBP's strategy to enhance border security effectiveness. Advanced ground control systems are essential for leveraging sophisticated aerial assets, such as drones and surveillance aircraft, which provide critical intelligence and operational capabilities. By investing in these systems, CBP aims to improve its ability to detect and respond to threats along U.S. borders, thereby contributing to national security and public safety.

What is General Atomics Aeronautical Systems, Inc.'s track record with government contracts, particularly in similar technology areas?

General Atomics Aeronautical Systems, Inc. (GA-ASI) is a well-established defense contractor with a significant track record, particularly in the development and production of unmanned aircraft systems (UAS) and related technologies. They are known for platforms like the Predator and Reaper drones. Their experience includes providing not only the aircraft but also the associated ground control stations, data links, and support systems. This expertise suggests they possess the technical capabilities and understanding required for the systems procured under this DHS contract. Reviewing their past performance on similar government contracts would provide further insight into their reliability and quality of delivery.

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,097,054

Exercised Options: $21,097,054

Current Obligation: $21,097,054

Contract Characteristics

Cost or Pricing Data: YES

Timeline