DoD's $908.5M Air Force contract for RSAF Engines/EMCS with General Electric shows strong competition
Contract Overview
Contract Amount: $908,508,400 ($908.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2012-06-29
End Date: 2018-02-20
Contract Duration: 2,062 days
Daily Burn Rate: $440.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CY12-17 RSAF ENGINES/EMSCS
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $908.5 million to GENERAL ELECTRIC COMPANY for work described as: CY12-17 RSAF ENGINES/EMSCS Key points: 1. Significant contract value of $908.5M over 6 years. 2. General Electric Company is the sole awardee, indicating a strong incumbent position. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a critical defense component.
Value Assessment
Rating: good
The contract value of $908.5M for a 6-year period suggests a substantial investment. Benchmarking against similar large-scale engine contracts would be necessary for a precise pricing assessment, but the full and open competition method implies competitive pricing was sought.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. This method allows all responsible sources to submit offers, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The use of full and open competition is expected to yield favorable pricing for taxpayers by leveraging market forces.
Public Impact
Ensures critical aircraft engine readiness for the Air Force. Supports advanced manufacturing and technological capabilities in the aerospace sector. Provides long-term sustainment for a significant defense asset. Potential for job creation within the aerospace manufacturing industry.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Sole awardee to General Electric Company, potential for future sole-source actions.
- Long contract duration (6 years) may limit agility to adopt newer technologies.
Positive Signals
- Full and open competition utilized.
- Significant investment in critical defense capability.
- Established manufacturer with proven track record.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a high-value and technologically intensive area critical to national defense. Spending in this sector is often characterized by long product lifecycles and significant R&D investment.
Small Business Impact
The data does not indicate specific subcontracting goals or awards to small businesses. Further analysis would be needed to determine the extent of small business participation in this large prime contract.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. However, ongoing oversight would be crucial to ensure performance, cost control, and adherence to contract terms throughout its duration.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole awardee to General Electric Company.
- Long contract duration.
- Critical component with high sustainment costs.
- Potential for supply chain disruptions.
- Dependence on a single manufacturer.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $908.5 million to GENERAL ELECTRIC COMPANY. CY12-17 RSAF ENGINES/EMSCS
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 Air Force).
What is the total obligated amount?
The obligated amount is $908.5 million.
What is the period of performance?
Start: 2012-06-29. End: 2018-02-20.
What is the historical performance of General Electric Company on similar engine sustainment contracts?
General Electric Company has a long history of providing aircraft engines and sustainment services to the Department of Defense. Their performance on previous contracts, including on-time delivery, quality of parts, and responsiveness to technical issues, would be a key indicator of future success. Reviewing past performance metrics and any documented issues or commendations would provide valuable insight into their reliability for this $908.5M contract.
Are there any emerging technologies or alternative engine solutions that could be more cost-effective or performant in the medium term?
Given the 6-year duration, it's important to assess if any emerging engine technologies could offer better performance or lower lifecycle costs. While full and open competition was used for this award, future sustainment or upgrades might benefit from exploring next-generation engine programs. Proactive market research into alternative solutions could mitigate the risk of technological obsolescence and ensure long-term cost-effectiveness for the Air Force.
How does the per-unit cost of these engines compare to industry benchmarks for similar military aircraft?
Benchmarking the per-unit cost against industry standards for comparable military aircraft engines is essential for evaluating value. While the contract is firm fixed price, understanding the cost structure relative to market rates helps determine if taxpayers received a competitive price. This analysis would involve comparing the awarded price to publicly available data or industry cost models for engines with similar thrust, fuel efficiency, and maintenance requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $908,508,400
Exercised Options: $908,508,400
Current Obligation: $908,508,400
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0019
IDV Type: IDC
Timeline
Start Date: 2012-06-29
Current End Date: 2018-02-20
Potential End Date: 2018-02-20 00:00:00
Last Modified: 2017-10-15
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