DoD Navy awards $28.8M for F404 engine parts, raising concerns over limited competition and taxpayer impact
Contract Overview
Contract Amount: $28,791,104 ($28.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2020-12-31
Contract Duration: 183 days
Daily Burn Rate: $157.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F404 PBL DO 1 JULY - 31 DEC 2020
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $28.8 million to GENERAL ELECTRIC COMPANY for work described as: F404 PBL DO 1 JULY - 31 DEC 2020 Key points: 1. Spending on aircraft engine parts reached $28.8 million. 2. General Electric Company is the sole provider, limiting competition. 3. The contract's lack of competition poses a risk to price discovery. 4. This falls under the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The award of $28.8 million for engine parts appears high given the lack of competition. Benchmarking against similar sole-source contracts or historical data would be necessary to confirm fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric Company. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying for critical aircraft engine components due to a lack of competitive bidding. The Department of the Navy relies on a single supplier for these essential parts, creating a potential vulnerability. Transparency in pricing for sole-source defense contracts is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Essential for aircraft maintenance
- Firm fixed price contract
Sector Analysis
This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector, which is critical for defense readiness. Benchmarks for similar sole-source contracts are difficult to establish without competitive data.
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 sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Further review of the justification for not competing the award 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 limits competition.
- Potential for inflated pricing.
- Lack of transparency in price discovery.
- Dependency on a single supplier.
- No small business participation noted.
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 $28.8 million to GENERAL ELECTRIC COMPANY. F404 PBL DO 1 JULY - 31 DEC 2020
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 $28.8 million.
What is the period of performance?
Start: 2020-07-01. End: 2020-12-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further documentation, it's difficult to assess the validity of this justification. However, the absence of competition inherently raises concerns about potential price inflation and reduced value for taxpayer dollars.
How does the pricing compare to previous sole-source awards for similar engine parts?
Comparing this $28.8 million award to previous sole-source contracts for similar F404 engine parts is essential for assessing value. If prices have increased significantly without clear justification, it indicates a potential risk of overpayment. A detailed analysis of historical pricing trends and the specific components procured is needed.
What measures are in place to ensure the effectiveness and quality of the engine parts provided under this sole-source contract?
Given the sole-source nature, robust quality assurance and performance monitoring are critical. The Department of the Navy should have stringent inspection and testing protocols to ensure the parts meet all specifications. Regular performance reviews with General Electric Company are necessary to confirm ongoing effectiveness and identify any potential issues proactively.
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: $28,791,104
Exercised Options: $28,791,104
Current Obligation: $28,791,104
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038319DUS01
IDV Type: IDC
Timeline
Start Date: 2020-07-01
Current End Date: 2020-12-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2025-04-24
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