DoD's $590M Contract for Aircraft Landing Equipment to General Atomics Faces Scrutiny
Contract Overview
Contract Amount: $590,245,137 ($590.2M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2004-04-02
End Date: 2021-03-31
Contract Duration: 6,207 days
Daily Burn Rate: $95.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200411!001061!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!37800!029!34!LAKEHURST AIR ENGINE!OCEAN !NEW JERSEY!+000016000000!N!N!000145621824!1710!AIRCRAFT LANDING EQUIPMENT !A1C!OTHER AIRCRAFT EQUIPMENT !223 !CVN(X) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!N!R!2!002!N!1G!A!N!Z! ! !N!C!N! ! ! !Z!B!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $590.2 million to GENERAL ATOMICS for work described as: 200411!001061!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!37800!029!34!LAKEHURST AIR ENGINE!OCEAN !NEW JERSEY!+000016000000!N!N!0001456218… Key points: 1. The contract awarded to General Atomics for aircraft landing equipment represents a significant investment by the Department of Defense. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The contract's duration and cost raise questions about value for money and potential risks. 4. The sector is Research and Development, specifically related to aircraft equipment, a critical area for defense modernization.
Value Assessment
Rating: questionable
The contract value of $590,245,136.53 for aircraft landing equipment is substantial. Without specific benchmarks for similar R&D contracts in this niche, it's difficult to definitively assess pricing, but the scale warrants careful review.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final award amount and the specific terms of the Cost Plus Award Fee structure need to be examined to ensure effective price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for advanced aircraft equipment development. Ensuring the best value is achieved through competitive processes and effective oversight is crucial for responsible spending.
Public Impact
Significant taxpayer investment in advanced defense technology. Potential for technological advancements in naval aviation capabilities. Impact on the aerospace and defense industry supply chain. Ensuring long-term sustainment and operational readiness of the equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overruns Potential
- Long Contract Duration
- Award Fee Structure Complexity
Positive Signals
- Full and Open Competition
- Strategic Technology Investment
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on aircraft landing equipment. Benchmarks in this specialized R&D area are often difficult to establish due to the unique nature of innovation and development, making direct cost comparisons challenging.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and Cost Plus Award Fee structure necessitate robust oversight to ensure performance targets are met and costs remain controlled. Regular reviews and audits are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Long contract duration increases risk of changing requirements or obsolescence.
- Complexity of R&D projects can lead to unforeseen challenges and delays.
- Need for stringent oversight to ensure value for money.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $590.2 million to GENERAL ATOMICS. 200411!001061!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!37800!029!34!LAKEHURST AIR ENGINE!OCEAN !NEW JERSEY!+000016000000!N!N!000145621824!1710!AIRCRAFT LANDING EQUIPMENT !A1C!OTHER AIRCRAFT EQUIPMENT !223 !CVN(X) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!N!R!2!002!N!1G!A!N!Z! ! !N!C!N! ! ! !Z!B!A!A!000!A!B!N! ! ! !Y! ! !0001! !
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 $590.2 million.
What is the period of performance?
Start: 2004-04-02. End: 2021-03-31.
What specific performance metrics are tied to the award fee structure, and how are they being monitored to ensure optimal value for the taxpayer?
The award fee structure is designed to incentivize contractor performance against predefined metrics. Effective oversight requires detailed tracking of these metrics, independent verification of achievements, and transparent reporting to justify any award fees paid. This ensures that taxpayer funds are only disbursed for demonstrated success and value.
Given the contract's duration and R&D nature, what are the primary risks associated with technological obsolescence or evolving defense requirements?
The primary risks include the possibility that the developed technology may become obsolete before or shortly after deployment due to rapid advancements in the field, or that evolving defense strategies may render the specific capabilities less relevant. Mitigation strategies involve incorporating flexibility into the contract for adaptations and maintaining close communication with end-users to anticipate future needs.
How does the Department of Defense ensure that the 'full and open competition' process effectively led to the most innovative and cost-effective solution for this critical aircraft landing equipment?
Ensuring effectiveness involves rigorous evaluation of all proposals against clearly defined criteria, including technical merit, past performance, and price. Post-award, ongoing monitoring of contractor performance and adherence to contract terms is crucial. The agency should also conduct lessons learned analyses to refine future competitive processes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
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
Financial Breakdown
Contract Ceiling: $31,957,583
Exercised Options: $31,957,583
Current Obligation: $590,245,137
Actual Outlays: $1,098,191
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-02
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2021-02-11
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