DoD Awards $6.5M for F110 Engine Spares and Consumables to General Electric
Contract Overview
Contract Amount: $6,504,399 ($6.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-12-18
End Date: 2025-04-30
Contract Duration: 133 days
Daily Burn Rate: $48.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS F110 SPARES CONSUMABLES
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $6.5 million to GENERAL ELECTRIC COMPANY for work described as: FMS F110 SPARES CONSUMABLES Key points: 1. Significant award for critical aircraft engine components. 2. Sole-source award to incumbent manufacturer raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending concentrated within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The award amount of $6.5M for spares and consumables is difficult to benchmark without comparable contracts. However, the sole-source nature suggests potential overpricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential aircraft engine parts.
Public Impact
Ensures continued operational readiness for Air Force aircraft utilizing F110 engines. Supports a key defense industrial base supplier, General Electric. Potential for increased maintenance costs impacting overall Air Force budget.
Waste & Efficiency Indicators
Waste Risk Score: 48 / 10
Warning Flags
- Sole-source award
- Limited competition
- Potential for price escalation
Positive Signals
- Supports critical defense needs
- Ensures supply chain for essential parts
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often dominated by a few key manufacturers due to specialized production requirements.
Small Business Impact
The awardee, General Electric, is a large corporation. There is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the necessity and fair pricing of these sole-source consumables and spares, given the lack of competitive bidding. The Department of Defense should monitor contract performance closely.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement limits competitive pricing.
- Potential for cost overruns due to lack of competition.
- Dependence on a single supplier for critical parts.
- Limited transparency in price determination.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to GENERAL ELECTRIC COMPANY. FMS F110 SPARES CONSUMABLES
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 $6.5 million.
What is the period of performance?
Start: 2024-12-18. End: 2025-04-30.
What is the justification for the sole-source award, and has a market research report been conducted to confirm the absence of viable competitive alternatives?
The justification for a sole-source award is typically based on factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. A thorough market research report should have been conducted to validate these claims and explore any potential for competition, even if limited.
How does the pricing of these F110 spares and consumables compare to historical pricing or industry benchmarks, given the sole-source nature of this award?
Without competitive bidding, it is challenging to establish definitive benchmarks. However, the government should compare current pricing against historical data for similar items, seek independent cost estimates, and potentially engage in price negotiation with General Electric to mitigate the risks associated with a sole-source procurement.
What mechanisms are in place to ensure the quality and timely delivery of these critical aircraft engine parts under this sole-source contract?
Standard contract clauses for quality assurance and delivery schedules are expected to be included. The Air Force should implement robust inspection and acceptance procedures, monitor delivery performance closely, and maintain open communication with the contractor to address any potential issues proactively.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $8,156,190
Exercised Options: $8,156,190
Current Obligation: $6,504,399
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA812223D0002
IDV Type: IDC
Timeline
Start Date: 2024-12-18
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-12-03
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