DoD Awards $15.5M for Rotor/Turbine Parts to General Electric, Limited Competition
Contract Overview
Contract Amount: $15,527,916 ($15.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-07-28
End Date: 2026-11-24
Contract Duration: 484 days
Daily Burn Rate: $32.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROTOR,TURBINE,AIRCR
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $15.5 million to GENERAL ELECTRIC COMPANY for work described as: ROTOR,TURBINE,AIRCR Key points: 1. Significant award to a major defense contractor, General Electric. 2. Focus on aircraft parts suggests a critical component for aviation readiness. 3. Limited competition raises questions about price discovery and potential cost efficiencies. 4. The sector is specialized, with high barriers to entry for new suppliers.
Value Assessment
Rating: fair
The award value of $15.5M for 484 days of delivery orders is substantial. Without specific unit costs or historical data for these exact parts, a direct pricing comparison is difficult. However, the 'NOT COMPETED' status suggests potential for higher pricing than if full and open competition were pursued.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This likely means only a select number of vendors were solicited, or potentially only one. This method can expedite procurement but may limit price discovery and potentially lead to higher costs compared to a full and open competition.
Taxpayer Impact: The limited competition may result in taxpayers paying a premium for these critical aircraft parts, as robust price competition was not leveraged.
Public Impact
Ensures continued availability of essential rotor and turbine components for naval aircraft. Supports a major defense contractor, potentially impacting jobs and the supply chain. Highlights the reliance on established suppliers for specialized aerospace parts. Raises concerns about the cost-effectiveness of non-competitive procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Potential for cost overruns
Positive Signals
- Ensures critical part availability
- Supports established defense contractor
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized area within aerospace. Spending in this sector is driven by defense needs and technological advancements, often involving high-value, low-volume production runs.
Small Business Impact
The data indicates this contract was awarded to General Electric Company and does not mention any small business participation. Given the specialized nature of rotor and turbine components, it is common for large prime contractors to handle such procurements, potentially limiting direct opportunities for small businesses.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny. Oversight should focus on the justification for limited competition and ensure that the pricing is reasonable despite the lack of a competitive bidding process. Tracking performance against the delivery schedule is also crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in the procurement process.
- Potential for vendor lock-in.
- Reliance on a single large contractor for critical parts.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to GENERAL ELECTRIC COMPANY. ROTOR,TURBINE,AIRCR
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 $15.5 million.
What is the period of performance?
Start: 2025-07-28. End: 2026-11-24.
What is the specific justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price?
The justification for not competing this contract is not provided in the data. Typically, reasons include proprietary technology, urgent and compelling needs, or sole-source capabilities. To ensure a fair and reasonable price, the Department of Defense would likely conduct a price analysis based on historical data, commercial pricing, or other available cost information, even without direct competition.
How does the unit cost of these rotor and turbine parts compare to similar components procured competitively by the DoD or other agencies?
Without specific unit cost data or a defined 'unit' for these parts, a direct comparison is challenging. However, given the 'NOT COMPETED' status, it is reasonable to assume that the price may be higher than if full and open competition had been utilized. A thorough price analysis by the contracting officer would be necessary to validate reasonableness.
What is the potential impact on naval aviation readiness if these parts are not delivered on time or meet quality standards?
The timely delivery and quality of these rotor and turbine parts are critical for maintaining the operational readiness of naval aircraft. Any delays or quality issues could lead to aircraft grounding, impacting training, deployment capabilities, and overall mission effectiveness. This underscores the importance of robust oversight and performance management for this contract.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $20,703,888
Exercised Options: $20,703,888
Current Obligation: $15,527,916
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GTF01
IDV Type: BOA
Timeline
Start Date: 2025-07-28
Current End Date: 2026-11-24
Potential End Date: 2026-11-24 00:00:00
Last Modified: 2025-11-24
More Contracts from General Electric Company
- 200607!387702!1700!n00019!naval AIR Systems Command !N0001906C0088 !A!N! !N! ! !20060424!20090131!001408509!001408509!001367960!n!general Electric Company !1000 Western AVE !lynn !ma!01905!37490!009!25!lynn !essex !mass !+000018238000!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !000 !NOT Discernable !336412!E! !3! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! !Y!1719!N00019!0001! ! — $2.4B (Department of Defense)
- Adaptive Engine Transition Program (aetp) — $2.1B (Department of Defense)
- 200608!001069!2100!w58rgz!usa Aviation and Missile Command!w58rgz06c0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!n!general Electric Company !1 Neumann WAY !cincinnati !oh!45215!15000!061!39!cincinnati !hamilton !ohio !+000177879422!n!n!000000000000!r706!logistics Support Services !a1b!aircraft Engines and Spares !000 !NOT Discernable !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1g!z!n!z! ! !Y!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! ! — $1.6B (Department of Defense)
- 200210!004379!1700!AA427 !naval AIR Systems Command !N0001901C0147 !A!N! !N!P00001 !20020508!20031130!001408509!001408509!001367960!n!general Electric Company Inc !1000 Western AVE !lynn !ma!01910!37490!009!25!lynn !essex !mass !+000060619860!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !2bjn!f414-Ge-400 !336412!E! !1! ! !C! ! !99990909!B! ! !A! !d!n!j!1!001!n!1a!a!w!f! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! ! ! ! !0001! — $1.5B (Department of Defense)
- F414-GE-400 Engines — $1.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)