DoD's $55.4M F414 Engine Support Contract Awarded to General Electric, Lacking Competition
Contract Overview
Contract Amount: $55,448,415 ($55.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-01-01
End Date: 2019-03-31
Contract Duration: 89 days
Daily Burn Rate: $623.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 FLEET SUPPORT PBL DO
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $55.4 million to GENERAL ELECTRIC COMPANY for work described as: F414 FLEET SUPPORT PBL DO Key points: 1. The contract is for fleet support of F414 engines, a critical component for naval aircraft. 2. General Electric is the sole provider for this specific support, indicating a lack of direct competition. 3. The absence of competition raises concerns about potential overpricing and limited negotiation leverage. 4. This falls under the Aircraft Engine and Engine Parts Manufacturing sector, a specialized and often consolidated industry.
Value Assessment
Rating: questionable
The contract value of $55.4M for an 89-day period is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar fleet support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of F414 engine support and General Electric's proprietary knowledge. This limited competition restricts price discovery and negotiation opportunities.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure on General Electric for this essential fleet support.
Public Impact
Ensures continued operational readiness of naval aircraft reliant on F414 engines. Supports a key defense contractor, potentially impacting jobs within the aerospace manufacturing sector. Highlights the reliance on single-source providers for specialized military equipment maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source dependency
Positive Signals
- Ensures critical fleet support
- Supports established manufacturer
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is highly specialized, often dominated by a few key players. Defense contracts in this area frequently face sole-source or limited competition challenges due to proprietary technology and maintenance requirements.
Small Business Impact
This contract was awarded to General Electric Company, a large corporation. There is no indication of small business participation in this specific award, which is common for highly specialized defense manufacturing and support contracts.
Oversight & Accountability
The 'NOT COMPETED' status suggests that standard competitive oversight processes were bypassed. Further review would be needed to confirm if justification for other than full and open competition was adequately documented and approved.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for price gouging
- Dependency on a single supplier
- Limited transparency in pricing
- Risk to operational readiness if supplier issues arise
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 $55.4 million to GENERAL ELECTRIC COMPANY. F414 FLEET SUPPORT PBL DO
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 $55.4 million.
What is the period of performance?
Start: 2019-01-01. End: 2019-03-31.
What is the justification for not competing this contract, and was it adequately documented?
The justification for not competing this contract likely stems from the specialized nature of F414 engine support and General Electric's proprietary knowledge. A thorough review of the contract file would be necessary to confirm if the 'sole-source' or 'limited competition' justification was properly documented, met regulatory requirements, and was approved by the appropriate authorities within the Department of Defense.
How does the pricing of this contract compare to historical F414 support contracts or similar engine support agreements?
Without competitive bids, assessing the pricing is challenging. A comparative analysis against previous F414 support contracts awarded to General Electric, or against similar engine support contracts for comparable aircraft platforms, would be necessary. Benchmarking against industry standards for engine maintenance and parts could also reveal potential price deviations.
What are the long-term implications of relying on a sole-source provider for critical aircraft engine support?
Long-term reliance on a sole-source provider like General Electric for F414 engine support can lead to escalating costs due to a lack of competitive pressure. It also creates a strategic vulnerability, as the Navy's operational readiness becomes dependent on a single entity's capabilities, pricing, and business decisions.
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: $55,448,415
Exercised Options: $55,448,415
Current Obligation: $55,448,415
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038318DP601
IDV Type: IDC
Timeline
Start Date: 2019-01-01
Current End Date: 2019-03-31
Potential End Date: 2020-08-30 00:00:00
Last Modified: 2020-08-26
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