DoD's $710M EMALS Contract for CVN 78 Production Awarded to General Atomics
Contract Overview
Contract Amount: $710,774,062 ($710.8M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2009-06-30
End Date: 2020-09-30
Contract Duration: 4,110 days
Daily Burn Rate: $172.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CVN 78 PRODUCTION EMALS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $710.8 million to GENERAL ATOMICS for work described as: CVN 78 PRODUCTION EMALS Key points: 1. The contract value is substantial at $710.77 million. 2. General Atomics is the sole awardee, indicating a lack of competition. 3. The contract is for production, suggesting a mature stage of the program. 4. The sector is Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract is a firm fixed price type, which typically aims for cost control. However, without competitive bidding, it's difficult to assess if the $710.77 million price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning General Atomics was the only source considered. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition on a large contract like this raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The sole-source nature of the award could stifle innovation from other potential suppliers. Dependence on a single supplier for critical aircraft launch systems poses a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending in this area is often driven by major platform acquisitions and upgrades, where specialized capabilities can limit competition.
Small Business Impact
There is no indication that small businesses were involved in this specific sole-source award. Future opportunities may exist in subcontracting, but this contract itself does not appear to benefit small businesses directly.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is justified and that the government is receiving the best possible value. Accountability for the procurement decision is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source dependency
- Limited transparency on price justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $710.8 million to GENERAL ATOMICS. CVN 78 PRODUCTION EMALS
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 $710.8 million.
What is the period of performance?
Start: 2009-06-30. End: 2020-09-30.
What justification was provided for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This often occurs when a system is highly specialized or proprietary. The price reasonableness is usually determined through cost analysis, comparison to historical data, or independent government cost estimates. Without access to the specific justification documentation, it's difficult to ascertain the exact reasoning and price validation methods used.
What are the long-term risks associated with relying on a single supplier for critical components like the EMALS system, especially given the contract's duration?
Long-term risks of sole-source reliance include potential price escalation as the supplier faces no competitive pressure, supply chain vulnerabilities if the supplier experiences issues, and a lack of incentive for the supplier to innovate or improve efficiency. For critical systems like EMALS, this dependence could also impact future upgrades or maintenance if the original supplier is unwilling or unable to provide them at reasonable terms.
How does the $710.77 million expenditure for EMALS production align with the overall modernization goals and budget for the CVN 78 program?
Assessing the alignment requires comparing this expenditure against the total program budget and the value derived from the EMALS system's contribution to the CVN 78's operational capabilities. If EMALS is a key enabler for advanced aircraft operations, the cost might be justified. However, without a comprehensive program review and cost-benefit analysis, it's challenging to determine if this spending represents an efficient use of resources relative to other program priorities and overall defense spending.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
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
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: $710,899,062
Exercised Options: $710,899,062
Current Obligation: $710,774,062
Actual Outlays: $4,823,100
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2020-09-11
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