DoD Awards $12.4M for T-64 Engines to General Electric, Lacking Competition
Contract Overview
Contract Amount: $12,393,830 ($12.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-11-16
End Date: 2025-11-26
Contract Duration: 1,836 days
Daily Burn Rate: $6.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-64 ENGINE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $12.4 million to GENERAL ELECTRIC COMPANY for work described as: T-64 ENGINE Key points: 1. Significant award value for aircraft engine components. 2. Sole-source award to General Electric raises competition concerns. 3. Long contract duration (5 years) warrants close monitoring. 4. Focus on a critical defense sector (Aircraft Engine Manufacturing).
Value Assessment
Rating: questionable
The award value of $12.4 million for T-64 engines is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar engine contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these T-64 engines.
Public Impact
Impacts readiness of naval aircraft relying on T-64 engines. Potential for higher defense spending due to non-competitive award. Highlights reliance on a single manufacturer for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Award to established manufacturer
- Clear contract end date
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs and specialized manufacturing capabilities.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is General Electric Company, a large business. This award does not appear to directly benefit small businesses.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure fair pricing and performance. Transparency in the justification for the sole-source award is crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Long contract duration increases risk exposure.
- No small business participation noted.
- 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 $12.4 million to GENERAL ELECTRIC COMPANY. T-64 ENGINE
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 $12.4 million.
What is the period of performance?
Start: 2020-11-16. End: 2025-11-26.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document these reasons thoroughly. Alternative competitive strategies, such as market research to identify potential sources or phased approaches, should be explored before resorting to sole-source procurement to ensure the best value for the government.
What are the potential risks associated with a long-term, sole-source contract for critical aircraft engines?
Long-term, sole-source contracts for critical components like aircraft engines carry risks of price escalation without competitive pressure, potential for complacency from the sole provider, and vulnerability if the supplier faces production issues or financial instability. It also limits the government's ability to leverage technological advancements from other potential suppliers.
How will the Department of the Navy ensure cost-effectiveness and performance throughout the duration of this contract?
The Department of the Navy can ensure cost-effectiveness through rigorous contract administration, including regular performance reviews, audits, and benchmarking against available market data. Performance can be monitored via key performance indicators (KPIs) tied to delivery schedules, quality standards, and technical specifications. Exercising options judiciously and maintaining open communication with the contractor are also vital.
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: $12,393,830
Exercised Options: $12,393,830
Current Obligation: $12,393,830
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038319DUK01
IDV Type: IDC
Timeline
Start Date: 2020-11-16
Current End Date: 2025-11-26
Potential End Date: 2025-11-26 00:00:00
Last Modified: 2025-11-26
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