DoD's $44.9M Contract for Aircraft Parts: General Atomics Awarded Sole-Source Deal
Contract Overview
Contract Amount: $44,877,157 ($44.9M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2029-12-13
Contract Duration: 2,538 days
Daily Burn Rate: $17.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 2023-2027 SUSTAINMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $44.9 million to GENERAL ATOMICS for work described as: 2023-2027 SUSTAINMENT Key points: 1. Significant contract value of $44.9M over 6 years. 2. Sole-source award to General Atomics raises competition concerns. 3. Potential risk of inflated costs due to lack of competition. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Atomics, was considered. This significantly limits price discovery and competition, potentially leading to less favorable terms for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts, as there was no pressure from competing bids to drive down costs.
Public Impact
Ensures continued availability of critical aircraft parts for the Department of the Navy. Supports a specific defense contractor, General Atomics, and its operations. Potential for higher costs impacts overall defense budget allocation. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Ensures critical sustainment for naval aircraft
- Long-term contract provides stability
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness. Benchmarks for this specific niche are hard to establish without competitive data.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this sole-source contract. General Atomics is a large defense contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. The Cost Plus Fixed Fee structure requires diligent monitoring of costs.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee can lead to cost overruns.
- Lack of transparency in pricing.
- Potential for vendor lock-in.
- Limited opportunities for small businesses.
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 $44.9 million to GENERAL ATOMICS. 2023-2027 SUSTAINMENT
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 $44.9 million.
What is the period of performance?
Start: 2023-01-01. End: 2029-12-13.
What is the justification for awarding this contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. A thorough review of the justification is necessary to ensure it aligns with federal procurement regulations and that alternatives were adequately explored.
How will the Department of Defense ensure cost-effectiveness with a Cost Plus Fixed Fee contract awarded sole-source?
The Department of Defense must implement robust cost monitoring and auditing procedures. This includes detailed review of the contractor's actual costs, verification of allowable expenses, and ensuring the fixed fee remains appropriate. Regular performance reviews and potential negotiation points should be established to manage the contractor's performance and cost control efforts.
What is the long-term strategic impact of relying on sole-source contracts for critical aircraft parts?
Long-term reliance on sole-source contracts can stifle innovation and competition within the defense industrial base. It may lead to a dependency on a single supplier, increasing vulnerability to supply chain disruptions or price hikes. Diversifying the supplier base and encouraging competition where possible are crucial for long-term strategic advantage and cost efficiency.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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
Parent Company: Diazyme Laboratories, Inc.
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
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: $72,660,356
Exercised Options: $46,614,706
Current Obligation: $44,877,157
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $501,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921G0014
IDV Type: BOA
Timeline
Start Date: 2023-01-01
Current End Date: 2029-12-13
Potential End Date: 2030-04-23 00:00:00
Last Modified: 2025-12-31
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