Five Year Fixed Indefinite Delivery/Indefinite Quantity Contract
In an effort to field MQ-9 Reapers faster and meet an increasing operational demand for the aircraft, the Air Force Life Cycle Management Center’s MQ-9 Program Office awarded a $7.4 billion ceiling Agile Reaper Enterprise Solution (ARES) contract to General Atomics Sept. 17.
The MQ-9 is an unmanned aircraft with intelligence, surveillance, reconnaissance, and strike capabilities.
ARES, a five year fixed indefinite delivery/indefinite quantity contract, developed by the MQ-9 Program Office, will stabilize costs, allow for the procurement of up to 36 aircraft per year in the same appropriation year, and reduce the time it takes to deliver the aircraft to operational units by approximately 35%. ARES is flexible and it has streamlined the traditional contract award process.
ARES has a pre-negotiated $3.3 billion price-quantity-curve. This curve allows the Air Force and foreign military sales partners to unilaterally order between 4-36 aircraft in a single year. Foreign Military Sales partners will be allowed to procure the Dash 21 variant, which is the NATO exportable version of the MQ-9A.
The contract contains pre-priced Mobile Ground Control Stations, Ground Data Terminal, spares, and support equipment. This pre-priced contract allows the MQ-9 Program Office to go through the complete contract clearance process only once.
“Prior to ARES, the standard contract award timeline was roughly 380 days,” said Alicia Morales, aircraft production manager with the Medium Altitude Unmanned Aerial System (MAUAS) Program Office, who was instrumental in developing ARES. “Now, once we have a budget, and it’s in our account, we can award in just a couple of days and field the aircraft in 26 months.”
In addition to fielding MQ-9’s faster, ARES brings a level of certainty to the MQ-9 Program. “ARES is a big deal because it answers the ‘mail’ as far as how do we deal with hard-to-predict demand signals from our international partners and enable increased responsiveness to U.S. Budget dynamics,” Morales said. “So, the team came together and figured out the best and most innovative approach to deal with unplanned requirements, so no matter what comes, we are prepared and able to handle it.”
The MQ-9 Program Office is capitalizing on this innovative contracting approach as they intend to award similar contracts for other enterprise-wide requirements. “This serves as a great lesson on how you can empower your workforce to deliver strategic wins for the program,” said Lt. Col. Nick Jordan, materiel leader for MQ-9 Production and Retrofit. “Because of the hard work from the ARES team, we are postured to rapidly respond to changing production requirements, as we continue to exploit every seam to accelerate the fielding of proven combat solutions to the warfighter.”
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