DoD's $55M F414 Engine Parts Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $55,059,293 ($55.1M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2018-06-21
End Date: 2018-09-30
Contract Duration: 101 days
Daily Burn Rate: $545.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 DCS PBL
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $55.1 million to GENERAL ELECTRIC COMPANY for work described as: F414 DCS PBL Key points: 1. Significant spending on critical aircraft engine components. 2. Sole-source award to General Electric Company raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on manufacturing of aircraft engines and parts.
Value Assessment
Rating: questionable
The contract value of $55.1M for 101 days of performance is substantial. Without competitive data, it's difficult to assess if this price is reasonable compared to similar engine part procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric Company. This limits price discovery and potentially leads to less favorable pricing for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential aircraft engine parts.
Public Impact
Ensures continued availability of critical engine parts for naval aircraft. Supports a major defense contractor and its supply chain. Highlights reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential for aircraft readiness
- Supports critical defense capabilities
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is crucial for maintaining military aviation readiness, but often involves high-value, specialized components where competition can be limited.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. This procurement did not provide opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Reliance on a single supplier.
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 $55.1 million to GENERAL ELECTRIC COMPANY. F414 DCS PBL
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 $55.1 million.
What is the period of performance?
Start: 2018-06-21. End: 2018-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of adequate competition within the required timeframe. Understanding the specific reasons behind this decision is crucial for assessing whether alternative solutions were explored and if the government received the best possible value under the circumstances.
What is the long-term strategy for ensuring competitive pricing for F414 engine parts?
The long-term strategy should focus on fostering competition where feasible, potentially through encouraging new entrants, developing alternative part sources, or negotiating longer-term agreements with built-in price reduction mechanisms. Proactive market research and engagement with potential suppliers are key to mitigating the risks associated with sole-source procurements.
How does this contract's pricing compare to industry benchmarks for similar engine components?
Without access to specific cost breakdowns or comparable contract data, a precise benchmark comparison is challenging. However, sole-source awards inherently carry a higher risk of non-competitive pricing. The Department of Defense should conduct thorough price analyses, potentially using historical data or independent cost estimates, to validate the reasonableness of the awarded price.
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,059,293
Exercised Options: $55,059,293
Current Obligation: $55,059,293
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038317DBG01
IDV Type: IDC
Timeline
Start Date: 2018-06-21
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-11-20
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