DoD's $63M F414 Engine Parts Contract Awarded to GE, Lacking Competition
Contract Overview
Contract Amount: $62,984,482 ($63.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2020-09-30
Contract Duration: 91 days
Daily Burn Rate: $692.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 FS PBL DO FY20 Q4
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $63.0 million to GENERAL ELECTRIC COMPANY for work described as: F414 FS PBL DO FY20 Q4 Key points: 1. Significant spending on aircraft engine parts, totaling $63M. 2. Sole-source award to General Electric Company raises competition concerns. 3. Potential for inflated pricing due to lack of competitive bidding. 4. The contract falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The award of $62,984,481.9 for aircraft engine parts to General Electric Company appears high given the lack of competition. Benchmarking against similar sole-source contracts for specialized engine components would be necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying a premium for essential aircraft engine parts.
Public Impact
Impacts readiness of naval aircraft requiring F414 engines. Potential for increased maintenance costs for the fleet. Highlights reliance on a single supplier for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to established manufacturer
- Supports critical defense systems
Sector Analysis
This contract is within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized area often dominated by a few key players. Spending benchmarks for similar sole-source procurements of engine components are crucial for assessing value.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
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 sole-sourcing 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
- Lack of competition
- Potential for price gouging
- Limited visibility into pricing justification
- Dependency 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 $63.0 million to GENERAL ELECTRIC COMPANY. F414 FS PBL DO FY20 Q4
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 $63.0 million.
What is the period of performance?
Start: 2020-07-01. End: 2020-09-30.
What is the justification for awarding this contract on a sole-source basis to General Electric Company?
The justification for a sole-source award typically centers on the unique capabilities, proprietary technology, or essential nature of the product or service provided by a single vendor. For aircraft engine parts, this could be due to specific design requirements, existing integration with the platform, or limited manufacturing capabilities among other potential suppliers. A thorough review of the official justification documentation is needed to understand the specific rationale.
What are the potential long-term risks associated with relying on a sole-source supplier for critical aircraft engine parts?
Long-term reliance on a sole-source supplier for critical aircraft engine parts poses several risks. These include vulnerability to supply chain disruptions, potential for price escalation without competitive pressure, and a lack of incentive for the supplier to innovate or improve efficiency. It can also limit the government's flexibility in sourcing and potentially lead to obsolescence if the supplier decides to discontinue the product line.
How does the lack of competition in this award impact the overall cost-effectiveness for the Department of Defense?
The absence of competition in this sole-source award directly impacts cost-effectiveness by removing the downward price pressure that typically results from multiple bidders vying for a contract. Without competitive benchmarking, there is an increased risk that the government may pay a higher price than if the contract had been competed. This can lead to inefficient use of taxpayer funds and potentially divert resources from other critical needs.
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: $62,984,482
Exercised Options: $62,984,482
Current Obligation: $62,984,482
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: 2020-07-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2020-08-26
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