DoD awards $57.2M for F414 engine parts, a sole-source contract with limited competition
Contract Overview
Contract Amount: $57,212,069 ($57.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-03-21
End Date: 2019-06-30
Contract Duration: 101 days
Daily Burn Rate: $566.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER AUTHORIZING THE PERIOD OF PERFORMANCE (POP) FOR 1 APRIL THROUGH 30 JUNE 2019 FOR THE F414 ENGINES PBL.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $57.2 million to GENERAL ELECTRIC COMPANY for work described as: DELIVERY ORDER AUTHORIZING THE PERIOD OF PERFORMANCE (POP) FOR 1 APRIL THROUGH 30 JUNE 2019 FOR THE F414 ENGINES PBL. Key points: 1. The contract is for F414 engine parts, a critical component for military aircraft. 2. General Electric Company is the sole provider, indicating a lack of competition. 3. The firm fixed price contract aims to control costs, but the sole-source nature raises concerns. 4. This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The $57.2 million award for a 3-month period appears high given the duration. Benchmarking against similar engine parts contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning General Electric was the only source considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for critical engine parts may result in higher expenditures than if multiple vendors were involved.
Public Impact
Ensures continued availability of essential F414 engine parts for naval aviation. Potential for increased costs due to sole-source procurement. Impacts the readiness of aircraft relying on F414 engines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Limited competition
- High award value for short period
Positive Signals
- Firm fixed price contract type
- Ensures critical part availability
Sector Analysis
This award is within the Aircraft Engine and Engine Parts Manufacturing sector, which is vital for defense readiness. Spending benchmarks for sole-source engine parts contracts are difficult to establish due to proprietary information and limited market visibility.
Small Business Impact
This contract was awarded to General Electric Company, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Navy awarded this delivery order. Oversight should focus on ensuring fair pricing and exploring future competitive opportunities for engine parts.
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 and price negotiation.
- High value for a 3-month performance period.
- Lack of transparency in cost breakdown.
- Potential for price escalation in future sole-source awards.
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 $57.2 million to GENERAL ELECTRIC COMPANY. DELIVERY ORDER AUTHORIZING THE PERIOD OF PERFORMANCE (POP) FOR 1 APRIL THROUGH 30 JUNE 2019 FOR THE F414 ENGINES 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 $57.2 million.
What is the period of performance?
Start: 2019-03-21. End: 2019-06-30.
What is the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. For this F414 engine parts contract, the Department of the Navy would need to document why General Electric was the only viable source. Exploring alternatives, even if ultimately unsuccessful, is crucial for demonstrating due diligence and ensuring taxpayer value.
How does the unit cost of these F414 engine parts compare to historical data or industry benchmarks?
Without specific unit cost data and detailed breakdowns, a direct comparison is challenging. However, given the sole-source nature and the significant award amount for a short period, a thorough review of historical pricing trends for similar F414 components and industry benchmarks for engine parts manufacturing is warranted to identify potential cost efficiencies or overruns.
What is the long-term strategy for ensuring competitive sourcing of F414 engine parts to mitigate future sole-source risks?
The long-term strategy should involve proactive market research to identify potential new entrants or alternative suppliers for F414 engine parts. This could include fostering competition through phased procurements, encouraging technology maturation for non-proprietary components, or exploring partnerships that could lead to a more competitive landscape over time, thereby reducing reliance on a single source.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $57,212,069
Exercised Options: $57,212,069
Current Obligation: $57,212,069
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: 2019-03-21
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2019-04-10
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