DoD Approves $5.27M Component Improvement Program for T700 Engine Series
Contract Overview
Contract Amount: $5,267,076 ($5.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2016-12-23
End Date: 2026-04-30
Contract Duration: 3,415 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF THE PURPOSE OF THIS TASK ORDER 0002 IS TO APPROVE AND FUND THE COMPONENT IMPROVEMENT PROGRAM PERFORMANCE PLAN FOR CALENDAR YEAR 2017 EFFORTS IN SUPPORT OF THE T700 SERIES ENGINE PROGRAM.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $5.3 million to GENERAL ELECTRIC COMPANY for work described as: IGF::CL,CT::IGF THE PURPOSE OF THIS TASK ORDER 0002 IS TO APPROVE AND FUND THE COMPONENT IMPROVEMENT PROGRAM PERFORMANCE PLAN FOR CALENDAR YEAR 2017 EFFORTS IN SUPPORT OF THE T700 SERIES ENGINE PROGRAM. Key points: 1. Spending focuses on calendar year 2017 efforts for the T700 engine program. 2. General Electric Company is the sole awardee, raising questions about competition. 3. The contract spans over 9 years, indicating a long-term investment. 4. Engineering Services sector sees significant funding for engine component improvement.
Value Assessment
Rating: fair
The $5.27M award for engineering services appears reasonable given the long duration and scope of engine component improvement. Benchmarking against similar long-term engine maintenance and upgrade contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric Company. This lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most competitive pricing available in the market for these engineering services.
Public Impact
Taxpayers fund long-term engine improvement program for T700 series. Potential for higher costs due to lack of competitive bidding. Ensures continued operational readiness and performance of critical T700 engines. Long contract duration raises questions about sustained value and evolving needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration (over 9 years) may not align with evolving technology or needs.
- Lack of transparency on performance metrics and cost controls.
Positive Signals
- Addresses critical component improvement for T700 engine series.
- Ensures continued program support and operational readiness.
- Long-term commitment provides stability for program execution.
Sector Analysis
This award falls within the Engineering Services sector, specifically supporting defense-related equipment. Spending benchmarks for similar long-term component improvement programs for complex machinery can vary widely, but a 9-year duration suggests a substantial and ongoing need.
Small Business Impact
The data indicates no specific set-aside for small businesses. The award to General Electric Company, a large corporation, suggests that small businesses were likely not primary participants in this specific contract.
Oversight & Accountability
Oversight is crucial for this long-term, sole-source contract to ensure General Electric Company meets performance expectations and that costs remain justified throughout the contract's duration. Regular reviews of the performance plan and expenditures are necessary.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration may lead to cost inefficiencies.
- Lack of transparency on specific performance metrics.
- Potential for cost overruns without competitive pressure.
Tags
engineering-services, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 million to GENERAL ELECTRIC COMPANY. IGF::CL,CT::IGF THE PURPOSE OF THIS TASK ORDER 0002 IS TO APPROVE AND FUND THE COMPONENT IMPROVEMENT PROGRAM PERFORMANCE PLAN FOR CALENDAR YEAR 2017 EFFORTS IN SUPPORT OF THE T700 SERIES ENGINE PROGRAM.
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $5.3 million.
What is the period of performance?
Start: 2016-12-23. End: 2026-04-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without further details, it's difficult to assess if alternative competitive strategies were thoroughly explored. A review of the contract file and any justifications provided would be necessary to understand the rationale and ensure fair market value was sought.
How will the government ensure cost-effectiveness and performance over the 9-year contract duration, especially given the lack of competition?
Effective oversight mechanisms are critical. This includes rigorous performance monitoring against the approved plan, regular cost reviews, and potentially incorporating incentive clauses or performance-based payments. Establishing clear milestones and deliverables, along with independent technical reviews, can help ensure accountability and value for taxpayer money throughout the contract's life.
What are the specific performance metrics and expected outcomes for the Component Improvement Program Performance Plan?
The provided data does not detail the specific performance metrics or expected outcomes of the Component Improvement Program Performance Plan. A thorough analysis would require access to the approved plan itself, which should outline key performance indicators (KPIs), targets for engine reliability, maintainability improvements, cost reduction goals, and other measurable objectives for the T700 series engine.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1000 WESTERN AVE, LYNN, MA, 01905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,267,076
Exercised Options: $5,267,076
Current Obligation: $5,267,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ17D0003
IDV Type: IDC
Timeline
Start Date: 2016-12-23
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 12:04:00
Last Modified: 2025-12-09
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