DoD awards $97.9M for F110 engines to General Electric, highlighting sole-source procurement for critical aircraft parts
Contract Overview
Contract Amount: $97,939,711 ($97.9M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-03-21
End Date: 2027-07-13
Contract Duration: 844 days
Daily Burn Rate: $116.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROYAL JORDANIAN AIR FORCE (FOREIGN MILITARY SALES) F110 ENGINES
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $97.9 million to GENERAL ELECTRIC COMPANY for work described as: ROYAL JORDANIAN AIR FORCE (FOREIGN MILITARY SALES) F110 ENGINES Key points: 1. The contract's value of $97.9 million underscores the significant investment in maintaining advanced military aircraft capabilities. 2. Sole-source procurement suggests a lack of readily available alternatives or specialized manufacturing requirements for these specific engines. 3. The duration of the contract (through July 2027) indicates a long-term need for these components. 4. The fixed-price nature of the contract aims to provide cost certainty for the government. 5. This award is concentrated within the aircraft engine manufacturing sector, a specialized and high-barrier-to-entry industry.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the number and type of F110 engines procured. However, the total award of $97.9 million for aircraft engine parts suggests a substantial investment. Given the sole-source nature, a direct comparison to competitive bids is not possible, making a definitive value-for-money assessment difficult. The fixed-price contract type offers some predictability, but the absence of competitive pressure could lead to less favorable pricing than in an open market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific product or service is only available from a single source, or when there are compelling reasons for using a particular contractor, such as unique technical expertise or compatibility requirements. The lack of competition means that price discovery through market forces was not utilized, potentially impacting the final cost to the government.
Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.
Public Impact
The Royal Jordanian Air Force is the ultimate beneficiary, receiving critical engine components to maintain its operational readiness. The contract ensures the continued availability of F110 engines, vital for the performance of specific military aircraft. The geographic impact is primarily within Ohio, where General Electric Company is located, potentially supporting local jobs and the regional economy. The contract supports specialized roles within the aerospace manufacturing workforce, requiring skilled engineers and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competitive pressure, potentially leading to higher costs for taxpayers.
- Lack of transparency in the sole-source justification process can obscure potential cost savings.
- Dependence on a single supplier for critical components poses a supply chain risk.
Positive Signals
- Awarding to General Electric, a known entity in aircraft engine manufacturing, suggests a level of confidence in their capabilities.
- The fixed-price contract type provides cost certainty for the duration of the award.
- The contract supports a foreign military sale, indicating strong international partnerships.
Sector Analysis
The contract falls within the broader aerospace and defense sector, specifically focusing on aircraft engine manufacturing. This is a highly specialized industry characterized by significant research and development costs, stringent quality control, and long product lifecycles. General Electric is a major player in this market, known for its advanced engine technologies. Comparable spending benchmarks would involve other large sole-source or competitive awards for similar high-performance military aircraft engines.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large, established prime contractor for a specialized defense component.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and financial management oversight mechanisms. As a Foreign Military Sale, there may be additional oversight from relevant international cooperation bodies. Transparency is limited due to the sole-source nature, but contract award details are typically made public. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Foreign Military Sales Program
- Aircraft Engine Procurement
- Defense Logistics Agency (DLA) Support
- Air Force Sustainment Programs
Risk Flags
- Sole-source procurement
- Potential for higher costs due to lack of competition
- Supply chain dependency on a single manufacturer
Tags
defense, department-of-defense, royal-jordanian-air-force, foreign-military-sales, aircraft-engine-parts-manufacturing, general-electric-company, sole-source, firm-fixed-price, ohio, aircraft-engine-and-engine-parts-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.9 million to GENERAL ELECTRIC COMPANY. ROYAL JORDANIAN AIR FORCE (FOREIGN MILITARY SALES) F110 ENGINES
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 $97.9 million.
What is the period of performance?
Start: 2025-03-21. End: 2027-07-13.
What is the specific type and quantity of F110 engines being procured under this contract?
The provided data does not specify the exact model or quantity of F110 engines. The F110 engine family is used in various military aircraft, including the F-16 Fighting Falcon and F-15 Eagle. Without further details, it is difficult to ascertain the precise scope of work. The contract value of $97.9 million suggests a significant number of engines or a substantial overhaul/refurbishment package, but the specific breakdown remains undisclosed in the available information.
What is the justification for the sole-source award to General Electric Company?
The justification for a sole-source award typically stems from factors such as the proprietary nature of the technology, the need for compatibility with existing platforms, or the unique capabilities of the sole provider. For F110 engines, General Electric is the original equipment manufacturer and holds the intellectual property and specialized manufacturing processes. Awarding to a different vendor would likely require extensive re-engineering, testing, and certification, making it prohibitively expensive and time-consuming, especially for critical military assets where operational readiness is paramount.
How does the pricing of this contract compare to previous F110 engine procurements or similar engine types?
Direct price comparison is challenging without access to historical contract data for F110 engines and detailed unit costs. As this is a sole-source award, it bypasses the competitive bidding process that typically drives down prices. However, the fixed-price contract type aims to cap costs. To assess value, one would need to benchmark against other sole-source awards for similar high-performance military jet engines, considering factors like engine thrust, technological sophistication, and expected lifespan. The absence of competition means that the government relies on General Electric's pricing structure, which may include margins reflecting R&D investment and market position.
What are the potential risks associated with relying on a single supplier for these critical aircraft engines?
The primary risk of sole-source procurement is the lack of competitive pressure, which can lead to inflated prices and reduced incentives for innovation or efficiency. Furthermore, dependence on a single supplier creates a vulnerability in the supply chain; any disruption at General Electric, whether due to production issues, labor disputes, or geopolitical factors, could directly impact the operational readiness of the Royal Jordanian Air Force's aircraft. This also gives the supplier significant leverage in negotiations. The government's ability to influence delivery schedules or cost reductions is diminished.
What is the historical spending trend for F110 engines or similar aircraft engine parts by the Department of Defense?
Historical spending data for F110 engines and similar aircraft parts by the Department of Defense would reveal trends in demand, pricing, and procurement strategies. Analyzing past contracts, including both competitive and sole-source awards, would provide context for the current $97.9 million award. Significant historical spending on F110 engines would indicate their continued importance in the DoD's aviation fleet or for foreign military sales. Fluctuations in spending could be linked to aircraft modernization programs, end-of-life cycles for older platforms, or shifts in geopolitical alliances requiring specific military hardware.
What is the expected performance and lifespan of the F110 engines being procured?
The F110 engine is a high-performance turbofan engine known for its reliability and power, commonly used in advanced fighter jets. Its expected performance characteristics include high thrust-to-weight ratios, efficient fuel consumption for its class, and durability under demanding combat conditions. The lifespan of such engines is typically measured in flight hours and is subject to rigorous maintenance schedules and overhauls. While specific lifespan figures vary based on operational tempo and maintenance, these engines are designed for extended service lives, often exceeding thousands of flight hours before requiring major refurbishment or replacement.
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: $97,939,711
Exercised Options: $97,939,711
Current Obligation: $97,939,711
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862625DB003
IDV Type: IDC
Timeline
Start Date: 2025-03-21
Current End Date: 2027-07-13
Potential End Date: 2027-07-13 00:00:00
Last Modified: 2025-10-09
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