DoD Awards $143M for F414 Engine Support, Sole-Sourced to GE
Contract Overview
Contract Amount: $143,110,385 ($143.1M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2025-08-31
Contract Duration: 242 days
Daily Burn Rate: $591.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 DEPOT COMPONENT SUPPORT PERFORMANCE BASED LOGISITICS
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $143.1 million to GENERAL ELECTRIC COMPANY for work described as: F414 DEPOT COMPONENT SUPPORT PERFORMANCE BASED LOGISITICS Key points: 1. Significant contract value for critical aircraft engine component support. 2. Sole-source award to General Electric Company raises competition concerns. 3. Potential risk associated with single supplier dependency for essential parts. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $143M for 242 days of service appears high, especially given the sole-source nature. Benchmarking against similar performance-based logistics contracts for complex aerospace components is difficult without more data, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers for essential aircraft engine support.
Public Impact
Ensures continued operational readiness for F414 engines, critical for naval aviation. Supports jobs within the aerospace manufacturing and maintenance sectors. Potential for increased costs due to lack of competition impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value for a short duration
- Lack of transparency in pricing justification
Positive Signals
- Ensures critical component support
- Performance-based logistics can improve efficiency
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for sole-source, performance-based logistics contracts of this nature are difficult to establish due to limited comparable data.
Small Business Impact
The awardee, General Electric Company, is a large corporation. There is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. Accountability mechanisms should be in place to track the effectiveness of the performance-based logistics approach.
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 and price discovery.
- High contract value for a relatively short period.
- Potential for vendor lock-in and future price increases.
- Lack of transparency regarding specific performance metrics and cost breakdowns.
- Dependency on a single supplier for critical aviation components.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $143.1 million to GENERAL ELECTRIC COMPANY. F414 DEPOT COMPONENT SUPPORT PERFORMANCE BASED LOGISITICS
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 $143.1 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-08-31.
What is the justification for the sole-source award to General Electric Company for F414 depot component support?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent requirements where only one source can meet the need. For the F414 engine, GE is the original equipment manufacturer, suggesting potential reliance on their specialized knowledge and parts. However, a thorough review should confirm if alternative sources or competitive approaches were truly infeasible.
How does the $143M contract value compare to historical spending on similar F414 support contracts, and what is the expected return on investment?
Without historical data or specific performance metrics, it's challenging to assess the value. The $143M for an 8-month period is substantial. A performance-based contract implies payment tied to outcomes, so the ROI depends on achieved readiness rates, reduced downtime, and cost savings compared to traditional support models. A detailed cost-benefit analysis is needed.
What are the risks associated with relying solely on General Electric for critical F414 engine component support, and are there mitigation strategies?
The primary risk is dependency, potentially leading to price escalation, supply chain disruptions, and reduced innovation if GE faces internal issues. Mitigation strategies could include establishing clear performance metrics, requiring transparency in cost breakdowns, exploring potential second-sourcing options for non-proprietary components in the future, and maintaining strong contract management.
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: $143,110,385
Exercised Options: $143,110,385
Current Obligation: $143,110,385
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $6,623,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038321DZN01
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-11-04
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