DoD awards $16.7M Engineering Services contract to General Electric Company, a sole-source procurement
Contract Overview
Contract Amount: $16,786,944 ($16.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2005-10-01
End Date: 2012-09-11
Contract Duration: 2,537 days
Daily Burn Rate: $6.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to GENERAL ELECTRIC COMPANY for work described as: Key points: 1. Significant contract value of $16.7 million awarded. 2. Sole-source procurement raises questions about competition and potential price inflation. 3. Long contract duration of 2537 days suggests a substantial, ongoing need. 4. Engineering services sector is critical for defense operations.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $16.7 million represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher spending than necessary, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inefficient practices. Lack of transparency in sole-source awards can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Awarded to a major established contractor
- Contract supports critical defense needs
Sector Analysis
Engineering services are vital for the Department of Defense's operational readiness and technological advancement. Spending in this sector is often substantial, but competitive bidding is crucial for cost efficiency.
Small Business Impact
The contract was awarded to General Electric Company, a large business. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and that costs are reasonable, despite the lack of competition.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Long contract duration increases risk exposure
Tags
engineering-services, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to GENERAL ELECTRIC COMPANY. See the official description on USAspending.
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 $16.8 million.
What is the period of performance?
Start: 2005-10-01. End: 2012-09-11.
What specific engineering services were procured, and why was a sole-source award deemed necessary?
The specific engineering services procured are not detailed in the provided data. However, sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A thorough review of the justification for this sole-source award is necessary to understand the rationale and ensure it was appropriate.
How was the $16.7 million price determined without competitive bidding?
Without competitive bidding, the price is likely based on the contractor's proposed costs, historical pricing, or government estimates. The cost-plus incentive fee structure means the final price could fluctuate based on performance and cost targets. Verifying the reasonableness of the initial estimate and the incentive structure is critical for taxpayer value.
What mechanisms are in place to ensure the effectiveness and efficiency of the engineering services provided over the contract's long duration?
The effectiveness and efficiency are managed through the cost-plus incentive fee structure, which aims to incentivize both cost control and performance. Regular government oversight, performance reviews, and milestone tracking are essential to ensure the contractor meets objectives and delivers value throughout the contract's life cycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ENGINE ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-10-01
Current End Date: 2012-09-11
Potential End Date: 2012-09-11 00:00:00
Last Modified: 2022-10-13
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