DoD awards $114M for F414 DCS PBL Support to General Electric, raising concerns about competition
Contract Overview
Contract Amount: $114,425,061 ($114.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-08-12
End Date: 2025-12-31
Contract Duration: 141 days
Daily Burn Rate: $811.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 DCS PBL SUPPORT
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $114.4 million to GENERAL ELECTRIC COMPANY for work described as: F414 DCS PBL SUPPORT Key points: 1. Significant contract value of $114.4M for aircraft engine support. 2. Sole reliance on General Electric Company for this critical component. 3. Potential risk of inflated costs due to lack of competitive bidding. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $114.4M for F414 DCS PBL Support is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal. The firm fixed price structure offers some cost certainty, but the lack of competition is a primary concern.
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 as there is no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the F414 DCS PBL Support, as there was no opportunity for multiple vendors to bid and offer more competitive pricing.
Public Impact
Impacts readiness of Navy aircraft relying on F414 engines. Potential for higher maintenance costs affecting overall defense budget. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- No clear justification for sole-source provided.
- High contract value without competitive pressure.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Supports critical aircraft engine maintenance.
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this sector is often characterized by high R&D costs and specialized manufacturing capabilities, making competition challenging but essential for cost control.
Small Business Impact
The contract was awarded to General Electric Company, a large business. There is no indication that small businesses were involved in this specific sole-source award, which is common for highly specialized defense components.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable. The Department of the Navy should provide a strong justification for not pursuing a competitive process to ensure accountability.
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 transparency in pricing
- High contract value
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 $114.4 million to GENERAL ELECTRIC COMPANY. F414 DCS PBL SUPPORT
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 $114.4 million.
What is the period of performance?
Start: 2025-08-12. End: 2025-12-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. For critical components like the F414 engine support, the government might argue that only General Electric possesses the necessary expertise, tooling, or data rights. However, a thorough review and public justification are crucial to ensure this is not a missed opportunity for cost savings.
What are the potential long-term risks associated with relying on a sole-source provider for critical engine parts?
Long-term reliance on a sole-source provider can lead to vendor lock-in, reduced innovation, and potentially escalating costs over time as the vendor faces no competitive pressure. It also increases supply chain risk, as the program becomes entirely dependent on one company's production capacity and financial stability. This can impact program continuity and overall defense readiness.
How can the Department of the Navy ensure fair pricing and value for money in future sole-source contracts of this magnitude?
To ensure fair pricing, the Department of the Navy should conduct robust cost and price analyses, potentially using independent cost estimators. They should also explore options for partial competition or incentivize performance improvements. Furthermore, maintaining strong relationships with potential future competitors and encouraging technology maturation can help foster competition in subsequent contract actions.
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: $114,425,061
Exercised Options: $114,425,061
Current Obligation: $114,425,061
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: 2025-08-12
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-11-13
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