Navy Awards $74.3M for F414 Fan Modules, Funding Production Lot 47 Engines
Contract Overview
Contract Amount: $74,318,944 ($74.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2025-07-31
Contract Duration: 1,400 days
Daily Burn Rate: $53.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 1-PROCURE TWO USN F414 FAN MODULES ON CONTRACT LINE ITEM NUMBER (CLIN)0211. UNITS UNDER CLIN0211 WILL BE FUNDED THROUGH THE NAVY RECLAMATION AND CONSIDERATION PROGRAM ADD FUNDING ON CLIN0210, USN F414 PRODUCTION LOT 47 ENGINES, A QUANTITY OF 16.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $74.3 million to GENERAL ELECTRIC COMPANY for work described as: 1-PROCURE TWO USN F414 FAN MODULES ON CONTRACT LINE ITEM NUMBER (CLIN)0211. UNITS UNDER CLIN0211 WILL BE FUNDED THROUGH THE NAVY RECLAMATION AND CONSIDERATION PROGRAM ADD FUNDING ON CLIN0210, USN F414 PRODUCTION LOT 47 ENGINES, A QUANTITY OF 16. Key points: 1. Contract awarded to General Electric Company for critical F414 engine components. 2. Funding is tied to the Navy's Reclamation and Consideration Program. 3. High value contract for a specialized defense manufacturing sector. 4. Potential risk associated with sole-source or limited competition for specialized parts.
Value Assessment
Rating: good
The contract value of $74.3 million for two F414 fan modules appears reasonable given the specialized nature of military aircraft engine components. Benchmarking against similar sole-source or limited-competition procurements for advanced aerospace parts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting a limited competition approach. This method may be necessary for highly specialized components like F414 fan modules, but it can limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in a higher cost to taxpayers compared to a fully competed contract, though specialized defense needs may justify this approach.
Public Impact
Ensures continued readiness and operational capability for Navy aircraft utilizing F414 engines. Supports a key defense industrial base supplier, General Electric Company. Impacts the supply chain for advanced aircraft engine components. Contributes to the overall defense budget allocation for aircraft maintenance and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to sole-source nature
Positive Signals
- Ensures critical component availability
- Supports established defense contractor
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The contract was awarded to General Electric Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for highly specialized, large-value defense procurements.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Given the firm fixed-price nature, oversight will likely focus on delivery schedules, quality control, and adherence to contract terms to ensure taxpayer value.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for price creep over contract duration
- Dependency on a single supplier for critical components
- Limited transparency into cost drivers without competitive bids
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.3 million to GENERAL ELECTRIC COMPANY. 1-PROCURE TWO USN F414 FAN MODULES ON CONTRACT LINE ITEM NUMBER (CLIN)0211. UNITS UNDER CLIN0211 WILL BE FUNDED THROUGH THE NAVY RECLAMATION AND CONSIDERATION PROGRAM ADD FUNDING ON CLIN0210, USN F414 PRODUCTION LOT 47 ENGINES, A QUANTITY OF 16.
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 $74.3 million.
What is the period of performance?
Start: 2021-09-30. End: 2025-07-31.
What is the justification for not competing this procurement, and how does it align with FAR requirements for limited competition?
The justification for not competing likely stems from the specialized nature of the F414 fan modules and the need to maintain compatibility with existing engine systems. Agencies must demonstrate that only one source can meet the requirement, or that exceptional circumstances exist, to justify limited competition under the Federal Acquisition Regulation (FAR).
What are the long-term cost implications of relying on a single supplier for these critical engine components?
Long-term reliance on a single supplier can lead to price escalation without competitive pressure. It also creates a dependency that could be exploited. The Navy should explore strategies for future competition or cost reduction, such as advanced procurement planning or incentivizing alternative suppliers.
How does the funding through the Navy Reclamation and Consideration Program impact the overall cost-effectiveness of this procurement?
Funding through this program suggests that the components are either replacements for existing parts or part of a broader sustainment strategy. The cost-effectiveness depends on whether this program offers better pricing or faster delivery than traditional procurement methods, and if it leverages existing assets or capabilities.
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
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: $75,755,116
Exercised Options: $75,755,116
Current Obligation: $74,318,944
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921D0003
IDV Type: IDC
Timeline
Start Date: 2021-09-30
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-04-07
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