DoD awards $58.5M for RSAF aircraft parts, with no competition and significant risk
Contract Overview
Contract Amount: $58,523,544 ($58.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2018-09-25
End Date: 2022-01-27
Contract Duration: 1,220 days
Daily Burn Rate: $48.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROYAL SAUDI AIR FORCE (RSAF) INITIAL PROVISIONING, SPARES, CONSUMABLES, WAR READINESS KITS, AND SUPPORT EQUIPMENT.
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $58.5 million to GENERAL ELECTRIC COMPANY for work described as: ROYAL SAUDI AIR FORCE (RSAF) INITIAL PROVISIONING, SPARES, CONSUMABLES, WAR READINESS KITS, AND SUPPORT EQUIPMENT. Key points: 1. High dollar value for aircraft parts and support equipment. 2. Sole-source award to General Electric Company raises competition concerns. 3. Potential for inflated pricing due to lack of competitive bidding. 4. Significant risk associated with sole-source defense contracts.
Value Assessment
Rating: questionable
The contract value of $58.5M for aircraft parts and support equipment is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar contracts.
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 limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition on this large contract potentially results in taxpayers paying more than necessary for critical aircraft components and support.
Public Impact
Taxpayers may be overpaying for essential military aircraft parts. Lack of transparency in pricing due to sole-source award. Potential impact on readiness if parts are not procured at the best possible price.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Foreign military sale implications
Positive Signals
- Supports critical defense needs for an allied nation
- Ensures operational readiness of RSAF aircraft
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector is critical for defense readiness, but competitive procurement is essential to manage costs effectively.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. The prime contractor is General Electric Company, a large corporation.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance. However, the sole-source nature limits the scope of oversight regarding price reasonableness.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Risk of vendor lock-in.
- Limited transparency in pricing justification.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.5 million to GENERAL ELECTRIC COMPANY. ROYAL SAUDI AIR FORCE (RSAF) INITIAL PROVISIONING, SPARES, CONSUMABLES, WAR READINESS KITS, AND SUPPORT EQUIPMENT.
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $58.5 million.
What is the period of performance?
Start: 2018-09-25. End: 2022-01-27.
What is the justification for the sole-source award, and was a full and open competition truly not feasible?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's difficult to ascertain the specific reasons. However, a thorough review should confirm that exploring all competitive avenues was indeed impractical before resorting to a sole-source designation, ensuring taxpayer funds are used judiciously.
What measures are in place to ensure price reasonableness given the lack of competition?
In sole-source procurements, price reasonableness is often assessed through cost analysis, comparison to historical pricing, or benchmarking against similar commercial items. The Defense Contract Management Agency (DCMA) likely performed a cost analysis. However, the absence of competing bids inherently reduces the certainty of achieving the lowest possible price for the government.
What is the long-term strategic impact of awarding such a significant contract without competition to a single provider?
Awarding large, sole-source contracts without competition can foster vendor lock-in, potentially reducing future competitive opportunities and innovation. It may also create a dependency on a single supplier, which could pose risks to supply chain resilience and long-term cost management. Strategic sourcing reviews should periodically assess alternatives.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA812217R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,569,067
Exercised Options: $58,569,067
Current Obligation: $58,523,544
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA812214G0001
IDV Type: BOA
Timeline
Start Date: 2018-09-25
Current End Date: 2022-01-27
Potential End Date: 2022-01-27 00:00:00
Last Modified: 2023-01-31
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