Air Force awards $13.2M for F Series Component Improvement, focusing on R&D for physical and engineering sciences
Contract Overview
Contract Amount: $13,205,897 ($13.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-11-01
End Date: 2026-04-30
Contract Duration: 545 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: FY25 F SERIES COMPONENT IMPROVEMENT PROGRAM
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $13.2 million to GENERAL ELECTRIC COMPANY for work described as: FY25 F SERIES COMPONENT IMPROVEMENT PROGRAM Key points: 1. Contract awarded to General Electric Company for R&D services. 2. The contract duration is 545 days, ending April 30, 2026. 3. This is a Cost Plus Fixed Fee contract type. 4. The contract is not competed, raising questions about price discovery. 5. The NAICS code 541715 indicates research and development in physical, engineering, and life sciences. 6. The contract is a delivery order under a larger contract vehicle. 7. The base contract value is $2.42M, with this order adding $13.2M.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and comparison to similar R&D efforts. The fixed fee component provides some cost control, but the cost-plus nature inherently carries risk. The significant increase from the base contract value warrants scrutiny to ensure the added funds are justified by evolving research needs and market conditions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without a competitive bidding process, it is difficult to assess if the government received the best possible pricing and value. The lack of competition may limit opportunities for other qualified contractors and could potentially lead to higher costs than if multiple bids were solicited.
Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure to drive down prices.
Public Impact
The Department of the Air Force benefits from advanced research and development for its F Series components. This contract supports the improvement and sustainment of critical aerospace technology. The research conducted will likely enhance the performance and reliability of Air Force aircraft. Workforce implications include specialized engineering and research roles at General Electric.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Cost-plus contract type can incentivize spending.
- Limited transparency on specific R&D deliverables and milestones.
Positive Signals
- Award to established contractor with likely relevant expertise.
- Focus on critical component improvement for defense systems.
- Clear contract end date provides a defined project scope.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The aerospace and defense industry heavily relies on continuous R&D to maintain technological superiority. Spending in this area is crucial for innovation in areas like engine components, materials science, and advanced manufacturing. Comparable spending benchmarks would typically involve other R&D contracts for aerospace systems and components, often awarded to large defense contractors.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of advanced R&D in aerospace components, it is likely that the prime contractor, General Electric, will subcontract to specialized firms. The extent to which small businesses will be involved as subcontractors is not detailed in the provided data, but opportunities may exist for niche technology providers.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress towards the fixed fee. Transparency may be limited due to the proprietary nature of R&D, but contract performance reviews and milestone achievements should be documented.
Related Government Programs
- Aerospace Component Research
- Defense R&D Contracts
- Air Force Sustainment Programs
- General Electric Defense Contracts
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Tags
research-and-development, department-of-defense, department-of-the-air-force, general-electric-company, cost-plus-fixed-fee, delivery-order, not-competed, aerospace, components, ohio, fy25
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.2 million to GENERAL ELECTRIC COMPANY. FY25 F SERIES COMPONENT IMPROVEMENT PROGRAM
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 $13.2 million.
What is the period of performance?
Start: 2024-11-01. End: 2026-04-30.
What is the historical spending pattern for the F Series Component Improvement Program with General Electric?
Historical spending data for the F Series Component Improvement Program with General Electric is not provided in the current data. However, the base contract value of $2.42 million suggests a prior relationship or a smaller scope of work. This new delivery order significantly increases the total obligated amount, indicating either an expansion of the program's scope, an increase in research complexity, or a change in funding strategy. Further analysis would require access to historical contract awards and modifications for this specific program and contractor to identify trends in spending, contract types, and performance.
How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts in the aerospace sector?
The Cost Plus Fixed Fee (CPFF) contract type is common in research and development, particularly when the scope of work is not fully defined at the outset or involves significant uncertainty. In the aerospace sector, CPFF contracts are often used for exploratory research, advanced technology development, and complex system integration where precise cost estimation is difficult. While it offers flexibility, it also carries higher risk for the government compared to fixed-price contracts, as costs can exceed initial estimates. Benchmarking requires comparing the fixed fee percentage and the total cost incurred against similar R&D efforts by other agencies or contractors, considering the project's complexity and risk profile.
What are the specific performance metrics and deliverables expected under this contract?
The provided data does not specify the exact performance metrics or deliverables for this $13.2 million F Series Component Improvement Program contract. Typically, for R&D contracts of this nature, deliverables would include research reports, technical data packages, prototypes, test results, and recommendations for component improvements. Performance metrics would likely focus on achieving specific technical objectives, meeting research milestones within defined timelines, and demonstrating the efficacy of proposed improvements. The fixed fee component suggests that achieving these defined objectives is crucial for the contractor to earn their full fee.
What is the risk associated with General Electric's track record on similar government R&D contracts?
General Electric is a large, established defense contractor with extensive experience in aerospace R&D. While specific risk indicators for this particular contract are not detailed, their track record on similar government R&D contracts would generally be considered robust. However, potential risks could include cost overruns inherent in CPFF contracts, delays in research progress, or challenges in meeting highly technical specifications. A thorough risk assessment would involve reviewing past performance evaluations, any past performance issues, and the contractor's demonstrated ability to manage complex R&D projects within budget and schedule constraints.
How does the $13.2M award compare to the overall Air Force spending on R&D for aircraft components?
The $13.2 million award for the F Series Component Improvement Program represents a specific investment within the broader R&D budget of the Air Force for aircraft components. The total Air Force R&D spending on aircraft components can run into billions of dollars annually, encompassing a wide array of projects from basic research to advanced system development. This particular contract, while substantial for a single effort, is likely a component of a larger strategic initiative. To contextualize its significance, it would need to be compared against the total allocated budget for similar R&D categories and the number of other concurrent contracts for component improvement across the Air Force fleet.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,409,664
Exercised Options: $13,409,664
Current Obligation: $13,205,897
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862620D0002
IDV Type: IDC
Timeline
Start Date: 2024-11-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-30
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