DoD's $55.4M F414 Engine Parts Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $55,448,415 ($55.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2019-09-30
Contract Duration: 91 days
Daily Burn Rate: $609.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 FS PBL QUARTERLY 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 FS PBL QUARTERLY DO Key points: 1. Significant spending on aircraft engine parts, highlighting the importance of this component in defense operations. 2. Sole-source award to General Electric Company suggests a lack of competition, potentially impacting price. 3. The contract duration of 91 days indicates a short-term need for these parts. 4. This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector, crucial for military readiness.
Value Assessment
Rating: fair
The contract value of $55.4 million for a 91-day period appears substantial. Without comparable contract data for similar F414 engine parts, it's difficult to definitively assess pricing efficiency. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may lead to higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Ensures continued operational readiness of Navy aircraft relying on F414 engines. Supports the manufacturing sector for critical defense components. Potential for increased costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Ensures availability of critical aircraft engine parts.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is critical for maintaining military aviation capabilities. Benchmarks for similar sole-source contracts are often higher due to the lack of competitive pressure.
Small Business Impact
This contract was awarded to General Electric Company, a large business. There is no indication that small businesses were involved in this specific award, which could be an opportunity for future subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable. The Department of the Navy should have robust internal controls to validate the necessity and cost-effectiveness of such awards.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of competitive bidding
- Limited transparency in cost justification
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 FS PBL QUARTERLY 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: 2019-07-01. End: 2019-09-30.
What is the justification for the sole-source award, and has a thorough market research been conducted to ensure no other capable sources exist?
The justification for a sole-source award is typically based on factors like unique capabilities, urgent needs, or lack of viable alternatives. A thorough market research process should have been undertaken by the Department of the Navy to confirm that General Electric Company is the only source capable of meeting the requirement. Without this documentation, the sole-source decision is questionable.
How does the per-unit cost of these F414 engine parts compare to historical data or industry benchmarks, especially given the sole-source nature of the award?
Assessing the per-unit cost is crucial, particularly for sole-source contracts where competitive pressure is absent. A detailed analysis comparing this contract's pricing to previous F414 parts procurements, or to similar engine components from other manufacturers, is necessary. If benchmarks indicate a significant price premium, it suggests potential inefficiencies or a lack of effective price negotiation.
What measures are in place to ensure the effectiveness and timely delivery of these critical engine parts to maintain fleet readiness?
Given the critical nature of aircraft engine parts for maintaining operational readiness, the Department of the Navy must have stringent measures to ensure effectiveness and timely delivery. This includes quality assurance protocols, performance monitoring of the contractor, and robust logistics planning. Any delays or quality issues could significantly impact fleet availability and mission capability.
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: 2019-07-01
Current End Date: 2019-09-30
Potential End Date: 2020-08-30 00:00:00
Last Modified: 2020-08-26
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