DoD awards $24.5M R&D contract to General Electric for F110 engine tasks
Contract Overview
Contract Amount: $24,459,177 ($24.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-01-01
End Date: 2021-12-31
Contract Duration: 1,095 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CIP GE F110 CY19 TASK ORDER
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to GENERAL ELECTRIC COMPANY for work described as: CIP GE F110 CY19 TASK ORDER Key points: 1. Contract awarded to a single, large incumbent supplier. 2. Focus on research and development in physical sciences. 3. Potential for limited competition due to specialized nature. 4. Significant taxpayer investment in advanced engine technology.
Value Assessment
Rating: fair
The contract value of $24.59M for a 3-year period appears reasonable for specialized R&D. Benchmarking against similar complex engine development contracts is difficult without more data, but the fixed fee structure suggests some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, likely due to the specialized nature of the work and the incumbent's expertise with the F110 engine. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Advancement of critical aerospace engine technology. Potential for improved military aircraft performance and efficiency. Supports high-tech manufacturing and engineering jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency on R&D outcomes
Positive Signals
- Supports critical defense technology
- Incumbent expertise ensures continuity
- Potential for innovation
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.
Small Business Impact
This contract was awarded to a large business and did not include specific provisions for small business participation. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would focus on ensuring the R&D objectives are met within the fixed fee and that the contractor is performing diligently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost-plus contract type shifts cost risk to the government.
- Potential for scope creep in R&D projects.
- Dependence on a single supplier for critical technology.
Tags
research-and-development-in-the-physical, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to GENERAL ELECTRIC COMPANY. CIP GE F110 CY19 TASK ORDER
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 $24.5 million.
What is the period of performance?
Start: 2019-01-01. End: 2021-12-31.
What specific R&D advancements are expected from this contract, and how will their success be measured?
The contract aims to advance the F110 engine's capabilities, likely focusing on areas such as efficiency, thrust, or durability. Success metrics would typically involve technical performance reviews, prototype testing, and achievement of specific engineering milestones outlined in the contract's Statement of Work.
Given the limited competition, what measures are in place to mitigate the risk of cost overruns or suboptimal pricing?
The Cost Plus Fixed Fee (CPFF) structure provides some control by capping the contractor's fee. However, the government bears the risk of actual costs. Mitigation relies on robust government oversight, detailed cost tracking, and potentially performance incentives tied to achieving specific R&D goals within budget.
How does this investment align with broader Air Force modernization goals and ensure long-term technological advantage?
This investment likely supports the Air Force's strategic goals for next-generation fighter and bomber platforms that rely on advanced engine technology. By leveraging GE's expertise, the Air Force aims to maintain its technological edge, ensuring future operational effectiveness and deterrence capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $416,203,522
Exercised Options: $26,299,567
Current Obligation: $24,459,177
Actual Outlays: $1,522,072
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862615D0016
IDV Type: IDC
Timeline
Start Date: 2019-01-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-08-19
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