Navy aviation contract for aircraft engines awarded to General Electric Company for $25.3M
Contract Overview
Contract Amount: $25,321,000 ($25.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2007-12-05
End Date: 2008-10-31
Contract Duration: 331 days
Daily Burn Rate: $76.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVY AVIATION
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $25.3 million to GENERAL ELECTRIC COMPANY for work described as: NAVY AVIATION Key points: 1. Contract awarded via sole-source procurement, raising questions about price competitiveness. 2. Limited competition may have led to higher costs for taxpayers. 3. Contract duration of 331 days suggests a focused, short-term requirement. 4. The contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. 5. Oversight is likely managed by the Department of the Navy, a component of the DoD. 6. The firm fixed-price contract type shifts cost risk to the contractor.
Value Assessment
Rating: questionable
The contract value of $25.3 million is for a single delivery order. Without comparable sole-source awards or detailed cost breakdowns, it is difficult to definitively assess value for money. The lack of competition inherently limits the ability to benchmark pricing against market rates or other potential suppliers. The firm fixed-price structure is generally favorable for cost control, but the absence of competitive pressure is a significant concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided, but it typically arises when only one vendor can meet the requirement. The lack of multiple bidders means there was no opportunity for price discovery through a competitive bidding process, potentially leading to a higher price than if multiple firms had vied for the contract.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price, potentially resulting in taxpayer funds being used less efficiently.
Public Impact
The primary beneficiaries are the U.S. Navy aviation units relying on these aircraft engines. The service delivered is the provision of aircraft engines and related parts. The geographic impact is likely concentrated around Navy bases and operational areas. Workforce implications may include specialized technicians for engine maintenance and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing.
- Sole-source procurement limits transparency in pricing and value assessment.
- Short contract duration might indicate a reactive or urgent need rather than strategic planning.
Positive Signals
- Firm fixed-price contract type provides cost certainty for the government.
- Award to a known entity, General Electric, suggests a reliance on established capabilities.
- The contract is for a specific, defined product (aircraft engines).
Sector Analysis
This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft engine production and maintenance. The market for military aircraft engines is highly concentrated, often dominated by a few major players like General Electric. Spending in this area is critical for national defense capabilities. Comparable benchmarks would involve analyzing other sole-source or competed contracts for similar engine types or maintenance services within the DoD.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans for small businesses. The award to a large prime contractor like General Electric suggests that opportunities for small businesses would likely be through subcontracts, the extent of which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which holds the contractor responsible for cost overruns. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Navy Aircraft Procurement
- Defense Logistics Agency (DLA) Aviation
- Aircraft Engine Maintenance and Repair Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to lack of competition.
- Limited transparency in the procurement process.
Tags
defense, department-of-defense, department-of-the-navy, aircraft-engine-manufacturing, not-competed, sole-source, firm-fixed-price, delivery-order, ohio, general-electric-company
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.3 million to GENERAL ELECTRIC COMPANY. NAVY AVIATION
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 Navy).
What is the total obligated amount?
The obligated amount is $25.3 million.
What is the period of performance?
Start: 2007-12-05. End: 2008-10-31.
What is the specific type of aircraft engine or part being procured under this contract?
The provided data indicates the contract is for 'Aircraft Engine and Engine Parts Manufacturing' (NAICS code 336412) and was awarded to General Electric Company. However, the specific model or type of engine, or the exact nature of the parts, is not detailed in the summary data. Further investigation into the contract's statement of work or line item details would be necessary to identify the precise components or engine systems involved.
What was the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), signifying a sole-source award. The specific justification, such as a unique capability, urgent need, or lack of alternatives, is not provided in the summary. Government contracts awarded sole-source typically require a formal justification document (e.g., a Justification and Approval - J&A) that outlines why full and open competition is not feasible. Accessing this document would reveal the rationale behind the non-competitive award.
How does the awarded amount of $25.3 million compare to historical spending on similar aircraft engines by the Navy?
Comparing the $25.3 million award requires context on the specific engine type and quantity. Without that detail, a direct comparison is challenging. However, given this is a single delivery order with a 331-day duration, it represents a specific procurement event. Historical spending data for similar sole-source engine procurements or major overhauls by the Navy could serve as a benchmark. Analyzing trends in engine acquisition costs and the frequency of such awards to General Electric would provide further insight into whether this amount is typical, high, or low for the services rendered.
What is General Electric Company's track record with the Department of Defense, particularly for aircraft engines?
General Electric (GE) is a major, long-standing defense contractor with a significant history of supplying aircraft engines and related services to the Department of Defense (DoD) and various military branches, including the Navy. They are known for producing a wide range of jet engines for fighter jets, bombers, transport aircraft, and helicopters. Their track record includes numerous large-scale contracts, often awarded competitively, but also sole-source awards for specialized or follow-on requirements. GE's performance history with the DoD is generally extensive, though like any large contractor, specific contract performance can vary.
What are the potential risks associated with a sole-source contract for critical aircraft components?
The primary risk of a sole-source contract for critical aircraft components is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Other risks include reduced innovation, as the sole provider may have less incentive to improve products or services, and potential supply chain vulnerabilities if the single source faces production issues. Furthermore, it can limit the government's flexibility in adapting to changing technological requirements or seeking alternative solutions if the incumbent's offering becomes obsolete or inadequate.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,321,000
Exercised Options: $25,321,000
Current Obligation: $25,321,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810405G0003
IDV Type: IDC
Timeline
Start Date: 2007-12-05
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2019-09-02
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