DoD's SOCOM Awards $26.1M for YT-706 Engine Repair to General Electric
Contract Overview
Contract Amount: $26,141,242 ($26.1M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2026-12-31
Contract Duration: 377 days
Daily Burn Rate: $69.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS ORDER IS FOR YT-706 ENGINE REPAIR AND SERVICE.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $26.1 million to GENERAL ELECTRIC COMPANY for work described as: THIS ORDER IS FOR YT-706 ENGINE REPAIR AND SERVICE. Key points: 1. Significant contract value for specialized engine maintenance. 2. Sole-source award to incumbent provider raises competition concerns. 3. Potential for cost overruns due to lack of competitive pricing. 4. Focus on critical Special Operations Command (SOCOM) assets.
Value Assessment
Rating: questionable
The $26.1 million award for engine repair is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized engine maintenance contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to General Electric. This method bypasses competitive bidding, potentially leading to higher prices and limiting opportunities for other qualified vendors to offer their services.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engine repair services.
Public Impact
Ensures readiness of critical Special Operations Command (SOCOM) aircraft engines. Supports advanced military capabilities through specialized maintenance. Potential impact on budget allocation due to non-competitive pricing. Highlights reliance on a single contractor for vital equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
Positive Signals
- Ensures critical asset maintenance
- Experienced contractor
Sector Analysis
This contract falls under the industrial machinery repair and maintenance sector, specifically for complex aerospace engines. Spending in this area is often driven by defense needs and can be subject to sole-source awards due to specialized requirements.
Small Business Impact
The award was made directly to General Electric, a large corporation, and there is no indication of subcontracting opportunities for small businesses in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is justified and that future requirements are competed to promote fairness and cost-effectiveness.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency on justification
- Reliance on a single vendor
Tags
commercial-and-industrial-machinery-and-, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to GENERAL ELECTRIC COMPANY. THIS ORDER IS FOR YT-706 ENGINE REPAIR AND SERVICE.
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 $26.1 million.
What is the period of performance?
Start: 2025-12-19. End: 2026-12-31.
What is the justification for the sole-source award, and has a market research been conducted to confirm no other vendors can perform this service?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Agencies are generally required to conduct market research to validate these claims and explore potential competition before proceeding with a sole-source contract. Without this information, it's difficult to assess the validity of the award.
What is the historical cost performance for YT-706 engine repairs by General Electric, and how does it compare to industry benchmarks?
Analyzing historical cost data for YT-706 engine repairs by General Electric is crucial for assessing value. Comparing this data against industry benchmarks for similar engine types and repair complexities would reveal potential cost efficiencies or overruns. A lack of transparency in this data makes it challenging to determine if the current award represents a fair price for taxpayers.
What are the risks associated with relying on a sole-source provider for critical engine maintenance, particularly for SOCOM assets?
Relying on a sole-source provider for critical engine maintenance, especially for SOCOM assets, carries risks such as price escalation, reduced innovation, and potential supply chain vulnerabilities if the sole provider faces operational issues. It also limits the government's leverage in negotiations and can hinder the development of a competitive market for essential services, impacting long-term readiness and cost-effectiveness.
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
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: $26,141,242
Exercised Options: $26,141,242
Current Obligation: $26,141,242
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224121D0002
IDV Type: IDC
Timeline
Start Date: 2025-12-19
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-19
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