DoD's $31M TF33 LRIP contract awarded to Global Turbine Services, Inc. without competition

Contract Overview

Contract Amount: $31,074,955 ($31.1M)

Contractor: Global Turbine Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2023-03-31

Contract Duration: 913 days

Daily Burn Rate: $34.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TF33 LIMITED RATE INITIAL PRODUCTION (LRIP)

Place of Performance

Location: MEDLEY, MIAMI-DADE County, FLORIDA, 33178

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to GLOBAL TURBINE SERVICES, INC. for work described as: TF33 LIMITED RATE INITIAL PRODUCTION (LRIP) Key points: 1. The contract's value of $31.1 million for limited rate initial production of TF33 engines and parts suggests a specialized need. 2. Awarded without competition, the contract raises questions about potential price discovery and market fairness. 3. The duration of 913 days indicates a significant, long-term requirement for these engine components. 4. The fixed-price contract type aims to control costs, but the lack of competition may limit savings. 5. The contract falls under Aircraft Engine and Engine Parts Manufacturing, a critical but niche sector within defense. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for smaller enterprises.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for TF33 Limited Rate Initial Production. The firm fixed-price structure is a positive sign for cost control. However, without competitive bidding, it's difficult to ascertain if the $31.1 million represents a fair market price or if taxpayers received optimal value. Further analysis would require access to historical pricing for similar LRIP contracts or internal cost data from the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Global Turbine Services, Inc. was the only vendor considered. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. The absence of competition means there was no opportunity for other qualified companies to bid, potentially limiting price negotiation and innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This lack of competition also limits the government's ability to explore alternative solutions or leverage a broader supplier base.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the continued operation and readiness of aircraft utilizing TF33 engines. The services delivered involve the limited rate initial production of aircraft engines and engine parts, crucial for maintaining aging fleets. The geographic impact is primarily within Florida, where Global Turbine Services, Inc. is located, potentially supporting local jobs and the regional economy. Workforce implications include the need for specialized skills in aircraft engine manufacturing and maintenance, supporting a skilled labor force within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
Reliance on a single vendor could pose supply chain risks.
Limited public data makes independent value assessment difficult.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Award to an established entity suggests potential for reliable delivery.
Contract supports critical defense readiness for TF33-powered aircraft.

Sector Analysis

The contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized segment of the aerospace and defense industry. This sector is characterized by high barriers to entry, significant R&D investment, and stringent quality control requirements. The market size for specialized engine components like those for the TF33 can be limited, often leading to fewer potential suppliers. Comparable spending benchmarks are difficult to establish without more specific data on the TF33 engine's production volume and the specific components being manufactured.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. The award to Global Turbine Services, Inc., without specific size information, suggests it may be a larger entity or that the nature of the requirement did not lend itself to a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses within this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance requirements and payment schedules. Transparency is limited due to the sole-source nature of the award and the lack of detailed public reporting on the justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TF33 Engine Support Programs
Aircraft Engine Maintenance, Repair, and Overhaul (MRO)
Defense Logistics Agency (DLA) Aviation Support
Air Force Sustainment Center Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited public data hinders independent value assessment.
Potential for increased costs due to lack of competition.
Supply chain risk associated with single-source dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to GLOBAL TURBINE SERVICES, INC.. TF33 LIMITED RATE INITIAL PRODUCTION (LRIP)

Who is the contractor on this award?

The obligated recipient is GLOBAL TURBINE SERVICES, INC..

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 $31.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2023-03-31.

What is the specific justification for awarding this contract on a sole-source basis to Global Turbine Services, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required goods or services. This could be due to proprietary technology, unique manufacturing capabilities, lack of competition, or urgent and compelling needs. A full justification document, often referred to as a Justification and Approval (J&A), would normally be required for such awards and would detail the rationale. Without this document, it is difficult to fully assess the necessity of the sole-source designation.

How does the $31.1 million contract value compare to historical spending on TF33 engine components?

The provided data does not contain historical spending information for TF33 engine components, making a direct comparison difficult. The value of $31.1 million is for a Limited Rate Initial Production (LRIP) phase, which typically precedes full-rate production and often involves higher per-unit costs due to smaller batch sizes and initial setup. To assess if this value is reasonable, one would need access to previous LRIP contracts for the TF33 or similar engine programs, or data on the number of units being produced under this contract and their associated costs. Benchmarking against other LRIP efforts in the aerospace sector could offer some context, but specific data is lacking.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. As a Limited Rate Initial Production (LRIP) contract for aircraft engine and engine parts, the deliverables likely include a specified quantity of engine components manufactured to precise specifications. Performance would be measured against adherence to quality standards, delivery schedules, and technical requirements. The firm fixed-price nature suggests that meeting these defined deliverables within the agreed price is paramount. Further details would typically be found in the contract's Statement of Work (SOW).

What is the track record of Global Turbine Services, Inc. in fulfilling defense contracts, particularly for aircraft engines?

The provided data identifies Global Turbine Services, Inc. as the contractor but does not offer details on their specific track record with defense contracts or aircraft engines. To assess their reliability, one would need to examine their past performance history, including on-time delivery rates, quality of work, and any past disputes or contract terminations. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS) would be necessary to evaluate their experience and capabilities in fulfilling similar requirements.

What is the potential risk associated with relying on a single supplier for TF33 engine components?

Relying on a single supplier, as is the case with this sole-source contract, introduces several risks. Supply chain disruption is a primary concern; any issue affecting Global Turbine Services, Inc. (e.g., financial instability, production problems, natural disasters) could halt the supply of critical engine components. This dependency also limits the government's leverage in price negotiations and potentially reduces incentives for the supplier to innovate or improve efficiency. Furthermore, the lack of competition means the government cannot easily switch suppliers if performance issues arise or if a better offer becomes available elsewhere.

How does this contract fit into the broader sustainment strategy for TF33-powered aircraft within the Air Force?

This contract for Limited Rate Initial Production (LRIP) of TF33 engine components is likely a crucial part of the sustainment strategy for aircraft that still utilize these engines. LRIP phases are often used to establish or re-establish production lines, validate manufacturing processes, and produce initial quantities before potentially scaling up for full-rate production or extended sustainment. The duration and value suggest a significant, albeit potentially initial, commitment to ensuring the availability of these parts. This supports the operational readiness of specific Air Force platforms that depend on the TF33 engine, addressing potential obsolescence or diminishing manufacturing sources.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9374 N W 102TH ST, MEDLEY, FL, 33178

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $31,074,955

Exercised Options: $31,074,955

Current Obligation: $31,074,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA812420D0008

IDV Type: IDC

Timeline