DoD's $55.4M F414 Engine Parts Contract Awarded to GE Company
Contract Overview
Contract Amount: $55,448,415 ($55.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-04-01
End Date: 2021-06-30
Contract Duration: 90 days
Daily Burn Rate: $616.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 FS PBL DO FOR 1 APRIL 2021 - 30 JUNE 2021
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 DO FOR 1 APRIL 2021 - 30 JUNE 2021 Key points: 1. The contract focuses on aircraft engine parts, a critical component for naval aviation. 2. General Electric Company is the sole provider, raising questions about competition. 3. The award value is substantial, necessitating careful oversight for taxpayer value. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a specialized industry.
Value Assessment
Rating: fair
The award value of $55.4M for a 3-month period appears high. Benchmarking against similar sole-source contracts for engine parts is crucial to determine 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 limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition for critical aircraft engine parts may result in taxpayers paying a premium for these components.
Public Impact
Ensures continued availability of critical aircraft engine parts for naval operations. Potential for increased costs due to sole-source nature of the award. Highlights reliance on a single manufacturer for essential defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Short contract duration may indicate urgent need or fragmented procurement.
- Lack of small business participation noted.
Positive Signals
- Ensures supply of critical engine parts.
- Award to established manufacturer with proven capabilities.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is vital for defense readiness, but often dominated by a few key suppliers.
Small Business Impact
There is no indication of small business participation in this sole-source award. Opportunities for small businesses in specialized manufacturing sectors like this are often limited.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable, and to explore future competitive opportunities.
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 inflation
- Limited small business involvement
- High contract value for short duration
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 DO FOR 1 APRIL 2021 - 30 JUNE 2021
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: 2021-04-01. End: 2021-06-30.
What is the justification for the sole-source award, and what steps are being taken to foster future competition?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. The Department of Defense should actively seek opportunities to break down requirements or develop alternative sources to introduce competition in future procurements, thereby improving cost-effectiveness and reducing reliance on a single supplier.
How does the per-unit cost of these engine parts compare to industry benchmarks or previous contracts?
Without specific per-unit cost data and access to detailed pricing breakdowns, a direct comparison is challenging. However, given the sole-source nature, it is imperative for the agency to conduct thorough price analysis against historical data and available market intelligence to ensure the pricing is fair and reasonable for the taxpayer.
What is the long-term strategy for ensuring a competitive and cost-effective supply chain for these critical engine parts?
A long-term strategy should involve market research to identify potential new entrants, investment in developing alternative technologies or manufacturing processes, and potentially breaking down the requirement into smaller, more digestible contracts to encourage broader participation. Proactive planning is key to mitigating risks associated with sole-source dependencies.
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: 2021-04-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2021-08-13
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