DoD's $55.4M F414 Engine Parts Contract Awarded to GE Amidst Limited Competition
Contract Overview
Contract Amount: $55,448,415 ($55.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2021-09-30
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 DO FOR 1 JULY 2021 - 30 SEPTEMBER 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 JULY 2021 - 30 SEPTEMBER 2021 Key points: 1. The contract focuses on aircraft engine parts, a critical component for naval aviation. 2. General Electric Company is the sole awardee, raising questions about competition. 3. The firm fixed-price contract type suggests a defined cost structure. 4. The short duration (91 days) may indicate a need for immediate supply or a bridge contract.
Value Assessment
Rating: fair
The award amount of $55.4M for a 91-day period for aircraft engine parts appears substantial. Benchmarking against similar sole-source contracts for specialized engine components would be necessary to definitively assess value.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for critical aircraft engine parts may result in taxpayers paying a premium compared to a fully competed scenario.
Public Impact
Ensures continued operational readiness for naval aircraft by providing essential engine parts. Supports a key defense contractor, General Electric Company, in a specialized manufacturing sector. Highlights potential vulnerabilities in the supply chain for critical defense components if competition is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Ensures critical part availability
- Firm fixed price contract
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a specialized area within defense manufacturing. Spending in this sector is crucial for maintaining military aviation capabilities, but often involves high barriers to entry and limited suppliers.
Small Business Impact
The awardee is General Electric Company, a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair and reasonable pricing. Further review of justification for other than full and open competition 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 higher costs due to lack of competition.
- Short contract duration may indicate urgency or a temporary solution.
- Reliance on a single supplier for critical components.
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 JULY 2021 - 30 SEPTEMBER 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: 2021-07-01. End: 2021-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or lack of viable alternatives. The government should have conducted a price analysis, potentially using historical data or market research, to validate the reasonableness of the firm fixed price offered by General Electric Company, especially given the absence of competitive bids.
What is the long-term strategy to foster competition for these critical aircraft engine parts to mitigate future sole-source awards?
The Department of Defense could explore strategies such as incentivizing new entrants, investing in research and development for alternative suppliers, or breaking down the contract into smaller components to encourage broader participation. Promoting open standards and interoperability could also reduce reliance on a single manufacturer.
How does the pricing of these engine parts compare to industry benchmarks for similar components, considering the sole-source nature of the award?
Without access to specific cost breakdowns or comparable contract data, a precise comparison is difficult. However, sole-source awards inherently carry a higher risk of inflated pricing due to the lack of competitive pressure. A thorough price analysis by the contracting officer is essential to ensure the price paid is fair and reasonable relative to market conditions and historical data.
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: 2021-07-01
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-05-19
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