DoD Awards $58.6M for Aircraft Engine Parts to General Electric Company
Contract Overview
Contract Amount: $58,593,225 ($58.6M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-09-28
End Date: 2025-04-30
Contract Duration: 214 days
Daily Burn Rate: $273.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DELIVERY ORDER 5
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $58.6 million to GENERAL ELECTRIC COMPANY for work described as: DELIVERY ORDER 5 Key points: 1. Significant award for aircraft engine components. 2. General Electric Company is a major player in this sector. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Focus on the Defense sector, specifically Air Force needs.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar contracts for aircraft engine parts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not incentivize the lowest possible price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical defense components. The contract's cost-plus nature warrants close monitoring to ensure value for money.
Public Impact
Ensures continued availability of essential aircraft engine parts for the Air Force. Supports a major defense contractor and its supply chain. Potential impact on aircraft readiness and operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Limited visibility into detailed cost components.
- Potential for scope creep or cost overruns.
Positive Signals
- Awarded under full and open competition.
- Addresses critical defense needs.
- Supports established industry leader.
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the broader aerospace and defense industry. Spending in this area is often driven by defense appropriations and the need for specialized, high-performance components.
Small Business Impact
While the primary awardee is a large corporation, the manufacturing of aircraft engine parts often involves a complex supply chain that may include small businesses. Further analysis would be needed to determine the extent of small business participation in this specific contract.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee contract type necessitates robust financial oversight and performance monitoring to ensure costs are reasonable and deliverables are met.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract.
- Potential for cost overruns.
- Limited transparency into detailed cost build-up.
- Reliance on a single large contractor.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.6 million to GENERAL ELECTRIC COMPANY. DELIVERY ORDER 5
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 $58.6 million.
What is the period of performance?
Start: 2024-09-28. End: 2025-04-30.
What is the projected total cost for this delivery order, considering the Cost Plus Fixed Fee structure?
The current award amount is $58.6 million. However, as a Cost Plus Fixed Fee contract, the final cost could exceed this amount depending on the actual costs incurred by General Electric Company and the agreed-upon fixed fee. Detailed financial reporting and oversight will be crucial to track the final expenditure.
What are the specific risks associated with the Cost Plus Fixed Fee contract type for this procurement?
The primary risk is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can reduce the incentive for cost efficiency. Additionally, defining 'allowable costs' and ensuring proper justification requires diligent oversight to prevent contractor overspending and ensure fair pricing for the government.
How does this award contribute to the overall effectiveness of Air Force aircraft operations?
This award is critical for maintaining the operational readiness of Air Force aircraft by ensuring the supply of necessary engine parts. The timely delivery and quality of these components directly impact aircraft availability, mission capability, and overall fleet effectiveness. Consistent performance from General Electric Company is vital for sustained Air Force operations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA862624RB007
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,593,225
Exercised Options: $58,593,225
Current Obligation: $58,593,225
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862622D0010
IDV Type: IDC
Timeline
Start Date: 2024-09-28
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2026-01-22
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