General Electric Company awarded $11.1M contract for machinery repair, highlighting potential for sole-source procurement in specialized sectors
Contract Overview
Contract Amount: $11,139,422 ($11.1M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-01-24
End Date: 2025-12-31
Contract Duration: 341 days
Daily Burn Rate: $32.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACTOR ACQUIRED PARTS
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $11.1 million to GENERAL ELECTRIC COMPANY for work described as: CONTRACTOR ACQUIRED PARTS Key points: 1. Contract value of $11.1M for machinery repair and maintenance. 2. Procurement method was 'NOT COMPETED', indicating potential lack of competitive bidding. 3. Contract duration is 341 days, ending December 31, 2025. 4. The contract falls under NAICS code 811310 for Commercial and Industrial Machinery Repair. 5. Awarded by the Department of Defense (U.S. Special Operations Command). 6. Contract type is Firm Fixed Price, providing cost certainty. 7. No small business set-aside was utilized.
Value Assessment
Rating: fair
The contract value of $11.1M for machinery repair and maintenance appears substantial. Without comparative data on similar specialized machinery repair contracts or detailed cost breakdowns, it is difficult to definitively assess value for money. The 'NOT COMPETED' designation raises questions about whether a competitive process could have yielded better pricing. Benchmarking against industry standards for similar services would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a 'NOT COMPETED' procedure, which typically implies that only one source was considered or available. This could be due to specialized knowledge, proprietary technology, or urgent requirements. The lack of competition means that price discovery through bidding was not utilized, potentially leading to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: For taxpayers, a sole-source award means the government did not leverage competitive market forces to secure the best possible price. This can result in a less efficient use of public funds if alternative, more cost-effective providers were available but not considered.
Public Impact
The U.S. Special Operations Command benefits from the maintenance and repair of critical machinery. Ensures operational readiness and capability for specialized military functions. The contract supports the maintenance of industrial and commercial machinery essential for defense operations. Potential workforce implications for skilled technicians involved in machinery repair.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Potential for vendor lock-in due to specialized nature of services.
- Limited transparency in cost justification due to sole-source award.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Award to a large, established contractor like General Electric suggests potential for reliable service delivery.
- Contract supports critical national defense functions.
Sector Analysis
The Commercial and Industrial Machinery and Equipment Repair and Maintenance sector (NAICS 811310) is crucial for supporting a wide range of industries, including defense. This contract, valued at $11.1M, represents a significant investment within this niche. While specific market size data for defense-related machinery repair is not readily available, the overall industrial machinery repair market is substantial. This contract fits within the broader landscape of government procurement for specialized maintenance services, where sole-source awards can occur for unique or critical equipment.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to General Electric Company, a large corporation, suggests that the primary focus was on the contractor's capability rather than promoting small business participation. This contract does not appear to directly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The U.S. Special Operations Command is responsible for ensuring contract performance and compliance. As a Firm Fixed Price contract, financial oversight focuses on adherence to the agreed-upon price. Transparency may be limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal review and potentially Inspector General oversight if issues arise.
Related Government Programs
- Defense Maintenance and Repair Contracts
- Special Operations Command Procurement
- Industrial Machinery Maintenance Services
- Sole-Source Defense Contracts
Risk Flags
- Sole-source award raises concerns about price competition.
- Lack of small business participation.
- Potential for limited transparency in cost justification.
Tags
defense, department-of-defense, u.s.-special-operations-command, machinery-repair, maintenance, not-competed, sole-source, firm-fixed-price, general-electric-company, commercial-and-industrial-machinery, federal-contract, dod
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to GENERAL ELECTRIC COMPANY. CONTRACTOR ACQUIRED PARTS
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2025-01-24. End: 2025-12-31.
What is the historical spending pattern for General Electric Company with the U.S. Special Operations Command for similar machinery repair services?
Analyzing historical spending data for General Electric Company with the U.S. Special Operations Command (USSOCOM) for similar machinery repair services is crucial for understanding the context of this $11.1M award. Without access to specific historical contract databases, a precise analysis is challenging. However, large defense contractors like GE often have long-standing relationships with various military branches, including SOCOM, for a range of equipment maintenance and support. If previous contracts for similar services were also sole-sourced or competed at a low level, it might indicate a pattern of reliance on GE for specialized needs. Conversely, if past procurements were competitively bid and resulted in lower prices, this current sole-source award warrants closer scrutiny regarding its justification and value. A review of past contract awards, including their values, competition levels, and performance periods, would provide a clearer picture of GE's historical role and pricing trends within USSOCOM for this service category.
How does the $11.1M contract value compare to industry benchmarks for similar machinery repair and maintenance services?
Benchmarking the $11.1M contract value against industry standards for similar machinery repair and maintenance services is essential for assessing value for money. However, precise comparisons are difficult without knowing the specific types of machinery involved, the complexity of the repairs, the required response times, and the geographic locations of service. General Electric Company is a major industrial conglomerate, and its pricing may reflect its overhead, specialized expertise, and brand reputation. For standard industrial machinery repair, $11.1M over approximately one year could be considered substantial. If the machinery is highly specialized, proprietary, or critical to unique operational requirements of the U.S. Special Operations Command, the cost could be justified. A thorough benchmark would involve comparing this contract's unit costs (if discernible), labor rates, and overhead factors against publicly available data for similar government or commercial contracts, or consulting industry cost-estimating resources. The 'NOT COMPETED' status further complicates direct benchmarking, as competitive bids often drive prices down.
What are the specific risks associated with a 'NOT COMPETED' contract of this magnitude?
A 'NOT COMPETED' contract, especially one valued at $11.1M, carries several inherent risks. The primary risk is the potential for inflated pricing, as the government does not benefit from the price discovery mechanism of competitive bidding. This can lead to a less efficient use of taxpayer funds. Another risk is the possibility of reduced innovation and service quality, as the contractor may face less pressure to improve offerings when competition is absent. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult or costly. Furthermore, the justification for not competing the contract must be robust; if the rationale is weak or improperly documented, it raises concerns about fairness and potential impropriety. Finally, a lack of competition can limit opportunities for other capable businesses, including small businesses, to secure government contracts.
What performance metrics or oversight mechanisms are in place to ensure the effectiveness of this contract?
While the provided data does not detail specific performance metrics or oversight mechanisms, standard government contracting practices would typically include several layers of oversight for a contract of this nature. The U.S. Special Operations Command (USSOCOM) contracting officer and contract specialists are responsible for monitoring performance against the contract requirements. For a Firm Fixed Price contract, the focus is on ensuring the delivery of specified services within the agreed-upon price and timeframe. Performance standards might be outlined in the contract's statement of work, potentially including metrics related to response time, quality of repairs, and adherence to maintenance schedules. Periodic reviews, progress reports from the contractor, and site inspections could also be part of the oversight process. If the contract involves critical systems, specific technical performance measures would likely be established. The Inspector General's office within the Department of Defense also provides an independent oversight function, investigating fraud, waste, and abuse.
What is the justification for awarding this contract on a sole-source basis to General Electric Company?
The justification for awarding this $11.1M contract on a sole-source basis (indicated by 'NOT COMPETED') to General Electric Company would stem from specific circumstances outlined in federal acquisition regulations (FAR). Common justifications include: 1) Only one responsible source is available or possesses unique capabilities necessary for the requirement. This could apply if GE holds patents, proprietary technology, or unique expertise essential for maintaining specific, specialized machinery used by USSOCOM. 2) An urgent and compelling need exists, and competition cannot be obtained in time. 3) The contract is a follow-on to a previously competed contract where only one source could provide the necessary services due to compatibility or standardization requirements. 4) Public exigency or national defense requires the award without competition. The specific FAR citation justifying the sole-source award would need to be documented by the contracting agency (USSOCOM) and is often publicly available through contract award notices, though detailed justifications may be redacted for proprietary or security reasons.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224119R0005
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1000 WESTERN AVE, LYNN, MA, 01905
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: $11,139,422
Exercised Options: $11,139,422
Current Obligation: $11,139,422
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224121D0002
IDV Type: IDC
Timeline
Start Date: 2025-01-24
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-09-10
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