Air Force awards $11.85M for F110-GE-129 engine test cell upgrades to ATEC Inc
Contract Overview
Contract Amount: $11,850,749 ($11.9M)
Contractor: Atec Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-02
End Date: 2027-09-01
Contract Duration: 729 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF TEST CELL EQUIPMENT FOR UPGRADING EXISTING TEST CELLS TO SUPPORT F110-GE-129 ENGINES.
Place of Performance
Location: STAFFORD, FORT BEND County, TEXAS, 77477
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to ATEC INC for work described as: PROCUREMENT OF TEST CELL EQUIPMENT FOR UPGRADING EXISTING TEST CELLS TO SUPPORT F110-GE-129 ENGINES. Key points: 1. This contract focuses on upgrading existing test cells for F110-GE-129 engines, a critical component for Air Force aircraft. 2. The sole awardee, ATEC Inc., suggests a lack of competition for this specific upgrade. 3. The contract value of $11.85 million is significant for specialized test equipment. 4. The sector is dominated by a few key players due to the specialized nature of engine testing equipment.
Value Assessment
Rating: fair
Pricing for specialized test cell equipment can vary widely. Without comparable contract data, it's difficult to definitively assess if $11.85 million is competitive. The firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are used for essential military hardware upgrades. The lack of competition may result in a higher overall cost to taxpayers.
Public Impact
Ensures continued operational readiness of F110-GE-129 engines, vital for Air Force missions. Supports the longevity and efficiency of critical aircraft engine testing infrastructure. Investment in specialized manufacturing capabilities within the aerospace supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited transparency on pricing benchmarks
Positive Signals
- Supports critical defense infrastructure
- Firm Fixed Price contract type
Sector Analysis
This procurement falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is driven by defense needs and technological advancements in aviation. Benchmarks are difficult to establish due to the highly specialized nature of test cell equipment.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the specialized nature of test cell equipment, it is likely that larger, established firms dominate this market segment.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms for defense procurements should apply, focusing on delivery schedules and equipment specifications.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing due to sole-source award
- Limited public data for cost validation
- Dependence on a single contractor for critical infrastructure
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to ATEC INC. PROCUREMENT OF TEST CELL EQUIPMENT FOR UPGRADING EXISTING TEST CELLS TO SUPPORT F110-GE-129 ENGINES.
Who is the contractor on this award?
The obligated recipient is ATEC 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 $11.9 million.
What is the period of performance?
Start: 2025-09-02. End: 2027-09-01.
What is the justification for limiting competition on this critical test cell equipment upgrade?
The justification for limited competition needs to be thoroughly documented by the agency. Typically, this involves demonstrating that only one source possesses the necessary technical expertise, proprietary technology, or existing infrastructure to perform the work effectively and within the required timeframe. Without this justification, the lack of competition raises concerns about potential overpricing and missed opportunities for cost savings.
How does the $11.85 million cost compare to similar test cell upgrade projects, if any exist?
Benchmarking this $11.85 million cost is challenging without access to proprietary data or similar public contracts. The specialized nature of F110-GE-129 engine test cells means that direct comparisons are rare. A thorough review of historical data for similar, albeit not identical, upgrades or new builds would be necessary to establish a reasonable cost range and identify potential deviations.
What is the long-term impact of upgrading these specific test cells on the Air Force's overall engine maintenance and readiness capabilities?
Upgrading test cells for the F110-GE-129 engines directly enhances the Air Force's capability to maintain and certify these critical powerplants. This ensures engines meet performance standards, contributing to overall aircraft readiness and mission effectiveness. Modernized test cells can also reduce turnaround times for engine maintenance and potentially identify issues earlier, leading to cost savings in the long run.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Atec, Inc.
Address: 12600 EXECUTIVE DR, STAFFORD, TX, 77477
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,850,749
Exercised Options: $11,850,749
Current Obligation: $11,850,749
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-09-02
Current End Date: 2027-09-01
Potential End Date: 2027-09-01 00:00:00
Last Modified: 2026-01-20
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