DoD's $57.2M Aircraft Engine Parts Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $57,212,069 ($57.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-06-26
End Date: 2019-09-30
Contract Duration: 96 days
Daily Burn Rate: $596.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PERFORMANCE PBL FOR PERIOD: 01 JULY 2019 THROUGH 30 SEPTEMBER 2019
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: PERFORMANCE PBL FOR PERIOD: 01 JULY 2019 THROUGH 30 SEPTEMBER 2019 Key points: 1. General Electric Company secured a significant contract for aircraft engine parts. 2. The contract was not competed, raising questions about potential price discovery. 3. The period of performance was short (3 months), suggesting a specific need. 4. The sector is critical for defense readiness and maintenance operations.
Value Assessment
Rating: fair
The award amount of $57.2M for a 3-month period appears high. Benchmarking against similar contracts for aircraft engine parts is difficult without more detailed specifications, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical aircraft engine parts.
Public Impact
Ensures continued operational readiness for Navy aircraft. Supports the maintenance and repair of essential defense assets. Highlights reliance on a single large contractor for specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potentially high cost due to sole-source award
- Short performance period may indicate urgency or limited scope
Positive Signals
- Ensures availability of critical parts
- Supports ongoing defense operations
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is directly tied to military readiness and aircraft sustainment. Benchmarks are difficult without specific part details, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was awarded to General Electric Company, a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The 'NOT COMPETED' status suggests this award may have bypassed standard competitive procedures. Further review of the justification for this sole-source award and its approval process is recommended to ensure accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on pricing justification
- Short performance period may indicate reactive procurement
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. PERFORMANCE PBL FOR PERIOD: 01 JULY 2019 THROUGH 30 SEPTEMBER 2019
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: 2019-06-26. End: 2019-09-30.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without access to the contract file, it's impossible to know the specific reason. However, agencies are required to conduct market research and negotiate pricing to ensure it's fair and reasonable, even in sole-source situations. This often involves comparing prices to historical data or similar commercial items.
How does the per-unit cost of these aircraft engine parts compare to industry benchmarks or previous contracts for similar items?
Without specific part numbers and detailed specifications, a direct per-unit cost comparison is not feasible. The award amount of $57.2 million over three months for 'Aircraft Engine and Engine Parts' is substantial. A thorough analysis would require breaking down the award into specific line items and comparing those against established government or commercial price lists and historical contract data for identical or substitutable parts.
What is the long-term strategy for ensuring competitive sourcing of these critical aircraft engine parts to mitigate future sole-source risks?
The long-term strategy should involve proactive market research to identify potential sources and encourage competition. This could include breaking down large requirements into smaller, more accessible contracts, developing standardized specifications, or fostering new entrants into the market. For critical components, the government might also explore options like public-private partnerships or investing in domestic manufacturing capabilities to reduce reliance on single suppliers.
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: 2019-06-26
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2019-11-27
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