DoD Awards $1.01B to GE for F-15EX Propulsion Systems, Ensuring Fleet Readiness
Contract Overview
Contract Amount: $1,014,477,106 ($1.0B)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-10-29
End Date: 2029-07-02
Contract Duration: 2,803 days
Daily Burn Rate: $361.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-15EX LOTS 2+ PROPULSION SYSTEM PROCUREMENT
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $1.01 billion to GENERAL ELECTRIC COMPANY for work described as: F-15EX LOTS 2+ PROPULSION SYSTEM PROCUREMENT Key points: 1. The contract covers the procurement of propulsion systems for the F-15EX aircraft, a critical component for air superiority. 2. General Electric Company is the sole awardee, indicating a specialized capability or a competitive process that favored them. 3. The firm-fixed-price contract type aims to control costs, but the long duration presents potential for cost escalation. 4. This procurement falls within the Defense sector, specifically aircraft manufacturing and parts, a significant area of federal spending.
Value Assessment
Rating: good
The contract value of $1.01 billion for F-15EX propulsion systems appears reasonable given the complexity and criticality of jet engines. Benchmarking against similar advanced aircraft engine procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process to ensure fair pricing and access to the best available technology. The specific awardee, General Electric, implies they were the most competitive bidder.
Taxpayer Impact: The competitive award aims to secure the best value for taxpayers by leveraging market forces for this essential defense system.
Public Impact
Ensures continued operational capability of the F-15EX fighter fleet. Supports advanced aerospace manufacturing jobs within the United States. Contributes to national defense readiness and technological superiority. Potential for follow-on contracts for sustainment and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2803 days) increases risk of cost overruns.
- Sole awardee may limit future competition and innovation.
- Dependence on a single supplier for critical components.
Positive Signals
- Firm-fixed-price contract type helps control costs.
- Full and open competition ensures a competitive award.
- Procurement supports a key strategic aircraft platform.
Sector Analysis
This procurement is within the Defense sector, specifically focusing on aircraft engine manufacturing. Federal spending in this area is substantial, driven by the need to maintain and modernize military aviation fleets. Benchmarks for similar engine procurements are highly specialized.
Small Business Impact
While the prime contractor is General Electric, a large corporation, the contract may indirectly benefit small businesses through subcontracts for parts, materials, or specialized services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The firm-fixed-price contract structure provides a degree of cost certainty. However, the long duration necessitates ongoing oversight to monitor performance, manage risks, and ensure adherence to contract terms and taxpayer value.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long-term contract duration increases risk of cost escalation.
- Potential for sole-source dependency on General Electric.
- Technological obsolescence over the contract's lifespan.
- Supply chain disruptions impacting production.
- Performance degradation over extended operational use.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.01 billion to GENERAL ELECTRIC COMPANY. F-15EX LOTS 2+ PROPULSION SYSTEM PROCUREMENT
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 $1.01 billion.
What is the period of performance?
Start: 2021-10-29. End: 2029-07-02.
What is the projected lifecycle cost of the F-15EX propulsion system under this contract, including potential sustainment and upgrade costs?
The current contract focuses on the initial procurement of propulsion systems for Lots 2+. Lifecycle costs will depend on factors like operational tempo, maintenance schedules, and future upgrade requirements. Detailed projections for sustainment and upgrades are typically developed separately and may involve future contract actions. The firm-fixed-price nature of this award aims to establish a clear baseline cost for the initial systems.
How does the per-unit cost of these F-15EX engines compare to similar advanced military jet engines procured by other nations or services?
Direct per-unit cost comparisons are challenging due to variations in engine specifications, technology levels, procurement volumes, and contract terms (e.g., fixed-price vs. cost-plus). The F-15EX engines are highly advanced, designed for specific performance requirements. A detailed cost analysis would require access to proprietary data and specific benchmarking studies conducted by the DoD.
What measures are in place to ensure the long-term reliability and performance of these engines, given the extended contract duration?
The contract likely includes performance specifications, warranty clauses, and potentially requirements for reliability and maintainability data. The Air Force's program management office will oversee adherence to these technical requirements. Regular reviews and inspections throughout the contract period will be crucial for monitoring engine health and ensuring sustained operational effectiveness.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA862621R0002
Offers Received: 2
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: $1,789,940,182
Exercised Options: $1,014,477,106
Current Obligation: $1,014,477,106
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-10-29
Current End Date: 2029-07-02
Potential End Date: 2029-07-02 00:00:00
Last Modified: 2025-12-30
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