DoD's $11.2M F110 Component Spares Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $11,190,826 ($11.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-12-16
End Date: 2025-12-31
Contract Duration: 380 days
Daily Burn Rate: $29.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS F110 COMPONENT SPARES CONSUMABLES
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $11.2 million to GENERAL ELECTRIC COMPANY for work described as: FMS F110 COMPONENT SPARES CONSUMABLES Key points: 1. Contract awarded for essential aircraft engine components and consumables, indicating a focus on maintaining operational readiness. 2. Sole-source award to General Electric Company, the original equipment manufacturer, suggests specialized knowledge or proprietary technology is required. 3. The contract duration of approximately one year points to a need for immediate or short-term supply chain support. 4. Firm Fixed Price contract type aims to provide cost certainty for the Department of Defense. 5. The contract falls under the Aircraft Engine and Engine Parts Manufacturing NAICS code, highlighting its specific industrial sector. 6. No small business set-aside was utilized, suggesting the primary contractor or its supply chain may not meet small business criteria for this specific award.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without comparable sole-source awards for F110 component spares. The firm fixed-price structure provides some cost control, but the lack of competition inherently limits price discovery. The total value of $11.2 million appears reasonable for specialized aerospace components, but a detailed cost breakdown from the contractor would be necessary for a more thorough assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was solicited. This approach is typically justified when the item is highly specialized, proprietary, or when the original equipment manufacturer is the only viable source. The lack of competition means that the Department of Defense did not benefit from a bidding process that could have potentially driven down prices through market forces.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as competitive pressures are absent. Without a competitive bid, there is less assurance that the government is receiving the best possible price for these critical aircraft engine components.
Public Impact
The primary beneficiaries are the Department of the Air Force, ensuring the operational readiness of aircraft utilizing F110 engines. Services delivered include the provision of essential spare parts and consumables for aircraft engine maintenance and repair. The geographic impact is primarily within the operational theaters and maintenance depots of the U.S. Air Force. Workforce implications include supporting the maintenance personnel who rely on these parts to keep aircraft flying.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing, potentially increasing costs for taxpayers.
- Lack of transparency in pricing without competitive bids makes value assessment difficult.
- Dependence on a single supplier can create supply chain risks if the supplier faces production issues.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the awarded amount.
- Award to General Electric, the OEM, ensures access to specialized and potentially proprietary components.
- Focus on spares and consumables directly supports aircraft readiness and operational capability.
Sector Analysis
This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. The market for such specialized parts is often dominated by original equipment manufacturers (OEMs) like General Electric due to proprietary designs and extensive testing requirements. Comparable spending benchmarks are difficult to establish without more specific data on F110 engine maintenance programs and the volume of spares required across the Air Force fleet.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a large prime contractor like General Electric suggests that the primary focus is on securing the necessary components directly from the OEM. This may limit direct opportunities for small businesses on this specific contract, although they may be involved further down the supply chain if GE utilizes them.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature, but contract award details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- F110 Engine Maintenance and Support
- Aircraft Component Procurement
- Aerospace Manufacturing Contracts
- Department of Defense Spare Parts
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns without competition
Tags
defense, department-of-defense, department-of-the-air-force, aircraft-engine-parts, manufacturing, sole-source, firm-fixed-price, spares-and-consumables, general-electric-company, ohio, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to GENERAL ELECTRIC COMPANY. FMS F110 COMPONENT 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 $11.2 million.
What is the period of performance?
Start: 2024-12-16. End: 2025-12-31.
What is the historical spending pattern for F110 component spares and consumables by the Department of the Air Force?
Analyzing historical spending for F110 component spares and consumables by the Department of the Air Force is crucial for understanding trends and identifying potential cost efficiencies. While specific data for this contract is limited to the current award amount of $11.2 million, a broader review of past contracts for similar items would reveal the total investment over time. This analysis would help determine if current spending aligns with historical norms, if there's an increasing demand for these parts, or if pricing has fluctuated significantly. Understanding these patterns can inform future budget allocations and negotiation strategies, particularly when considering the sole-source nature of the current award. For instance, if historical data shows a consistent increase in spending for these parts, it might indicate aging aircraft fleets or increased operational tempo, justifying the expenditure. Conversely, a sharp increase in unit costs over time, even in a sole-source environment, could warrant further investigation into cost drivers or potential alternative solutions.
How does the pricing of these F110 component spares compare to similar engine parts or previous contract awards?
Comparing the pricing of these F110 component spares to similar engine parts or previous contract awards is essential for assessing value for money, especially given the sole-source nature of this contract. Without access to detailed pricing breakdowns or historical award data for comparable items, a direct price-to-price comparison is difficult. However, analysts can look for trends in unit costs if available, or benchmark against industry standards for similar high-performance engine components. If previous awards for the same or similar parts were significantly lower, it would raise concerns about the current pricing. Conversely, if prices have remained stable or increased modestly in line with inflation and material costs, it might suggest reasonable pricing within the constraints of a sole-source award. The firm fixed-price structure provides some cost certainty, but the absence of competition means the government relies heavily on the contractor's pricing justification. A thorough review would involve examining the specific components being procured and their complexity, as well as any changes in manufacturing or material costs since prior awards.
What are the potential risks associated with a sole-source award for critical aircraft engine components?
Sole-source awards for critical aircraft engine components, such as this contract for F110 spares, present several potential risks. The most significant is the lack of price competition, which can lead to inflated costs for the government and taxpayers, as the contractor faces no market pressure to offer the lowest possible price. There's also a risk of reduced innovation and responsiveness, as the sole supplier may have less incentive to improve products or delivery times compared to a competitive environment. Furthermore, dependence on a single supplier creates supply chain vulnerability; any disruption in the contractor's production, quality control issues, or financial instability could severely impact the Air Force's operational readiness. Ensuring adequate oversight and robust contract management becomes paramount to mitigate these risks, including rigorous review of cost proposals and performance monitoring.
What is General Electric Company's track record in supplying F110 engine components to the Department of Defense?
General Electric Company (GE) has a long-standing and extensive track record as a primary supplier of F110 engines and their associated components to the Department of Defense, particularly the U.S. Air Force. The F110 engine is a workhorse for several key Air Force platforms, including the F-16 Fighting Falcon and F-15 Eagle. GE's history includes numerous contracts for engine production, maintenance, repair, and the supply of spare parts and consumables. Their deep involvement as the original equipment manufacturer (OEM) means they possess the proprietary knowledge, tooling, and manufacturing capabilities essential for producing and supplying these complex components. While specific performance metrics for every contract are not publicly detailed, GE's continued role as a major defense contractor and the ongoing reliance of the Air Force on the F110 engine suggest a generally reliable, albeit often sole-source, supply relationship. Evaluating their track record involves reviewing past contract performance, delivery timeliness, and quality control metrics where available.
How does this contract align with the Department of the Air Force's overall strategy for aircraft fleet readiness and maintenance?
This contract for F110 component spares and consumables directly aligns with the Department of the Air Force's overarching strategy to maintain high levels of aircraft fleet readiness and operational capability. The F110 engine powers critical fighter aircraft, and ensuring a steady supply of necessary spare parts is fundamental to minimizing downtime, facilitating timely maintenance, and maximizing the availability of these assets for training and combat missions. By awarding this contract, the Air Force is prioritizing the sustainment of its existing fleet, ensuring that these engines can be kept in optimal working condition. The firm fixed-price nature of the contract also supports budget predictability for maintenance, repair, and overhaul (MRO) activities. Ultimately, securing these components is a proactive measure to support air superiority and global power projection missions reliant on aircraft equipped with F110 engines.
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: $11,222,934
Exercised Options: $11,222,934
Current Obligation: $11,190,826
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: 2024-12-16
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-03
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