DoD awards $27.1M for GE LM2500 PBT Hot Section Hardware, raising competition concerns
Contract Overview
Contract Amount: $27,121,433 ($27.1M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2017-09-25
End Date: 2018-11-23
Contract Duration: 424 days
Daily Burn Rate: $64.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GE LM2500 PBT HOT SECTION HARDWARE
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to GENERAL ELECTRIC COMPANY for work described as: GE LM2500 PBT HOT SECTION HARDWARE Key points: 1. Contract awarded to General Electric Company for critical engine components. 2. Significant spending on specialized aircraft parts highlights defense sector needs. 3. Lack of competition raises questions about price discovery and potential overspending. 4. The contract's value is substantial for a single delivery order.
Value Assessment
Rating: questionable
The contract value of $27.1M for engine hardware is significant. Without available benchmarks or competitive pricing, it's difficult to assess if this price is optimal. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive environment.
Taxpayer Impact: The lack of competition for this substantial award means taxpayers may not be receiving the best possible price for this critical hardware.
Public Impact
Ensures operational readiness of naval vessels relying on GE LM2500 engines. Supports advanced manufacturing and maintenance within the aerospace and defense industry. Potential for increased costs due to limited competition impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Sole-source award
Positive Signals
- Firm fixed-price contract
- Supports critical defense systems
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft engine components. Spending in this area is often driven by specialized requirements and long-term sustainment needs for military platforms.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses within this contract. The prime contractor is a large corporation, suggesting limited direct opportunities for small businesses on this particular award.
Oversight & Accountability
Oversight is crucial for sole-source or limited-competition contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's contracting activity requires diligent review of justifications for non-competitive awards.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to lack of competition.
- Limited transparency on cost justification.
- Reliance on a single supplier for critical components.
- No indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to GENERAL ELECTRIC COMPANY. GE LM2500 PBT HOT SECTION HARDWARE
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 $27.1 million.
What is the period of performance?
Start: 2017-09-25. End: 2018-11-23.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for limited competition is not provided in the data. Typically, such justifications might include proprietary technology, urgent need, or lack of qualified sources. Without this information, it's impossible to assess the fairness of the pricing or the necessity of the limited competition approach. Further investigation into the contract file is required.
How does the cost of this hot section hardware compare to previous procurements or similar components from other manufacturers, if available?
Direct cost comparison is challenging without access to historical data or alternative manufacturer pricing for equivalent components. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of readily available benchmarks. A thorough cost analysis by the agency would be necessary to validate the reasonableness of the $27.1M award against industry standards or internal historical data.
What is the expected impact of this hardware on the operational effectiveness and maintenance schedule of the naval platforms it serves?
The LM2500 PBT hot section is a critical component for the operational readiness of naval gas turbine engines, which power numerous vessels. Ensuring a timely and adequate supply of this hardware is essential for maintaining fleet availability and minimizing downtime. Failure to procure these parts could lead to significant operational disruptions and increased maintenance costs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,121,433
Exercised Options: $27,121,433
Current Obligation: $27,121,433
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4A117G0008
IDV Type: BOA
Timeline
Start Date: 2017-09-25
Current End Date: 2018-11-23
Potential End Date: 2018-11-23 00:00:00
Last Modified: 2017-10-03
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