DoD awards $47.9M for aircraft engines, with General Electric Company as the sole provider
Contract Overview
Contract Amount: $47,900,977 ($47.9M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-04-28
End Date: 2025-09-18
Contract Duration: 1,969 days
Daily Burn Rate: $24.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F110 BULGARIA ENGINE COVID-19 DIB
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $47.9 million to GENERAL ELECTRIC COMPANY for work described as: F110 BULGARIA ENGINE COVID-19 DIB Key points: 1. This contract represents a significant investment in maintaining critical aircraft engine capabilities for the Air Force. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and limited market responsiveness. 3. A long contract duration of nearly 2000 days suggests a need for sustained engine support and maintenance. 4. The fixed-price contract type offers some cost certainty, but the absence of competition limits upside for the government. 5. The specific engine model and its role in Air Force operations are key to understanding the necessity of this sole-source award. 6. Benchmarking against similar engine support contracts is crucial to assess value for money in this high-stakes procurement.
Value Assessment
Rating: fair
The contract value of $47.9 million for aircraft engines and parts appears substantial. Without specific details on the number of engines or parts procured, a direct per-unit cost comparison is difficult. However, given the sole-source nature, there is a risk that the pricing may not reflect the most competitive market rates. Further analysis would require benchmarking against historical sole-source awards for similar engine types or comparing pricing with publicly available market data for aircraft engine components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one bidder, General Electric Company, was considered capable of fulfilling the requirement. This approach is typically used when a unique capability or proprietary technology is involved, or in situations where only one source can meet the urgent needs of the government. The lack of competition means the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors.
Taxpayer Impact: The absence of competition for this significant contract means taxpayers may have paid a premium, as there was no pressure on the contractor to offer the lowest possible price. This also limits opportunities for exploring potentially more cost-effective alternatives from other manufacturers.
Public Impact
The U.S. Air Force benefits from the continued availability and maintenance of critical aircraft engines, ensuring operational readiness. This contract supports the sustainment and operational capability of specific Air Force aircraft platforms. The geographic impact is primarily within the operational theaters and maintenance facilities of the U.S. Air Force. The contract supports specialized jobs within General Electric Company related to aircraft engine manufacturing, maintenance, and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Long contract duration may obscure potential for price increases over time.
- Lack of transparency in the specific engine components or services procured hinders detailed value assessment.
Positive Signals
- Fixed-price contract type provides some cost predictability for the government.
- Award to a known, established manufacturer like General Electric suggests a focus on reliability and proven technology.
- Contract supports critical national defense assets, ensuring operational readiness.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Aircraft engine manufacturing is a highly specialized segment within this sector, dominated by a few major global players. This contract falls within the 'Aircraft Engine and Engine Parts Manufacturing' industry code (NAICS 336412). Spending in this area is critical for maintaining the operational readiness of military aviation fleets. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition contracts for similar engine support and sustainment services across different military branches.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, General Electric Company, is a large aerospace manufacturer. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a direct set-aside means that small businesses are unlikely to be the primary recipients of this funding, though they may benefit indirectly through the supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Department of the Air Force. The contract is a delivery order under a larger contract vehicle, suggesting that the parent contract likely has established oversight mechanisms. Transparency regarding the specific use of funds and performance metrics would be subject to standard government reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- F110 Engine Support Contracts
- Air Force Aircraft Maintenance and Sustainment Programs
- Defense Logistics Agency (DLA) Aviation Support
- Propulsion Systems Procurement (DoD)
Risk Flags
- Sole-source award
- Long contract duration
- Lack of detailed performance metrics in award data
Tags
defense, department-of-defense, department-of-the-air-force, aircraft-engine-manufacturing, general-electric-company, sole-source, fixed-price, delivery-order, major-contract, ohio, f110-engine
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.9 million to GENERAL ELECTRIC COMPANY. F110 BULGARIA ENGINE COVID-19 DIB
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 $47.9 million.
What is the period of performance?
Start: 2020-04-28. End: 2025-09-18.
What is the specific aircraft platform and mission profile associated with the F110 engines covered by this contract?
The F110 engine is a turbofan engine manufactured by General Electric. It is primarily used in several key U.S. Air Force and Navy aircraft, including the F-16 Fighting Falcon, F-15 Eagle, and F-14 Tomcat (though the F-14 is largely retired). The specific mission profiles for these aircraft vary widely, from air superiority and ground attack to reconnaissance. Understanding the exact platform and its operational tempo is crucial for assessing the necessity and scale of the engine support required under this contract. For instance, high operational tempo for F-16s in active combat zones would necessitate more extensive and frequent engine maintenance and part replacement compared to aircraft used for training or strategic deterrence.
How does the pricing of this sole-source contract compare to previous sole-source F110 engine support contracts awarded to General Electric?
Comparing the pricing of this $47.9 million sole-source contract to previous sole-source F110 engine support contracts awarded to General Electric requires access to historical contract data. Without that specific data, a direct comparison is not possible. However, general trends in sole-source procurements suggest that prices can be higher than competitively bid contracts due to the lack of market pressure. If previous sole-source awards for similar scope and duration show significantly different price points, it could indicate changes in market conditions, inflation, or the specific services/parts included. A detailed analysis would involve identifying comparable historical contracts, adjusting for inflation, and examining the scope of work to determine if the current pricing is reasonable within the context of sole-source arrangements.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure performance and value?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature, typical KPIs would likely focus on engine availability rates, turnaround times for maintenance and repairs, adherence to technical specifications, and the quality of parts and services provided. SLAs would establish acceptable performance thresholds for these metrics, potentially including penalties for non-compliance or incentives for exceeding targets. The fixed-price nature of the contract suggests that the government is seeking predictable costs, while the Air Force would be monitoring performance closely to ensure mission readiness is maintained and that the contractor is meeting its obligations effectively.
What is the historical spending trend for F110 engine support and maintenance by the Department of Defense over the last five years?
Analyzing the historical spending trend for F110 engine support and maintenance by the Department of Defense over the last five years would require aggregating data from multiple contract awards. This specific contract award of $47.9 million represents a single data point. To establish a trend, one would need to identify all contracts related to F110 engine sustainment, including spare parts, depot maintenance, field support, and overhauls, awarded by the DoD (and specifically the Air Force and Navy, as they are major users) over the past five fiscal years. This would involve searching contract databases for relevant keywords, contract types, and the F110 engine designation. Such an analysis would reveal whether spending in this category is increasing, decreasing, or remaining stable, and could highlight periods of significant investment or shifts in procurement strategy.
What is the potential risk associated with the long contract duration (1969 days) in terms of technological obsolescence or evolving maintenance requirements?
A contract duration of 1969 days (approximately 5.4 years) for aircraft engine support carries inherent risks related to technological obsolescence and evolving maintenance requirements. While aircraft engines are designed for longevity, the pace of technological advancement in aviation and materials science can lead to newer, more efficient, or more reliable engine technologies emerging during the contract period. Furthermore, operational experience and unforeseen issues can lead to changes in recommended maintenance procedures or the need for updated parts. To mitigate these risks, the contract likely includes provisions for technical refresh, change orders, or periodic reviews to ensure that the support provided remains relevant and effective. The government would need to actively manage the contract to adapt to any significant technological shifts or updated maintenance protocols.
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,900,977
Exercised Options: $47,900,977
Current Obligation: $47,900,977
Subaward Activity
Number of Subawards: 64
Total Subaward Amount: $13,434,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862618D0029
IDV Type: IDC
Timeline
Start Date: 2020-04-28
Current End Date: 2025-09-18
Potential End Date: 2025-09-18 00:00:00
Last Modified: 2025-08-07
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