DoD's $26.5M Aircraft Engine Parts Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $26,518,930 ($26.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2018-09-26
End Date: 2021-03-31
Contract Duration: 917 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF A-18 KITS
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to GENERAL ELECTRIC COMPANY for work described as: IGF::OT::IGF A-18 KITS Key points: 1. Significant contract value for aircraft engine parts. 2. Sole awardee, General Electric Company, suggests potential lack of competition. 3. Risk of overpayment due to limited competition. 4. Sector is Aircraft Engine and Engine Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $26.5M for aircraft engine parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates or other potential suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order, indicating no competition was sought. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the best possible price for these critical aircraft engine parts.
Public Impact
Ensures continued supply of essential aircraft engine parts for the Navy. Potential for higher costs impacts overall defense budget allocation. Highlights reliance on a single supplier for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Long contract duration
Positive Signals
- Ensures critical part availability
- Established supplier relationship
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is highly specialized and often dominated by a few key players. Contracts in this area are critical for national defense readiness.
Small Business Impact
This contract was awarded to General Electric Company, a large business. There is no indication that small businesses were involved in the subcontracting or bidding process.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste, fraud, or abuse. Further review of the justification for sole-sourcing 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
- Lack of competitive bidding
- Potential for price gouging
- Limited transparency in pricing
- No small business participation noted
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to GENERAL ELECTRIC COMPANY. IGF::OT::IGF A-18 KITS
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 $26.5 million.
What is the period of performance?
Start: 2018-09-26. End: 2021-03-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without specific documentation, it's impossible to confirm the exact reason, but it's a critical piece of information for assessing value.
What is the risk associated with a sole-source contract for critical aircraft parts?
The primary risk is paying a premium due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, over-reliance on a single supplier can create vulnerabilities in the supply chain, especially during times of high demand or geopolitical instability.
How does this contract contribute to the effectiveness of naval aviation operations?
This contract ensures the availability of essential engine parts, which is crucial for maintaining the operational readiness of naval aircraft. Consistent access to these parts directly supports flight schedules, training, and mission execution, thereby underpinning the effectiveness of naval aviation capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,518,930
Exercised Options: $26,518,930
Current Obligation: $26,518,930
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA812214G0001
IDV Type: BOA
Timeline
Start Date: 2018-09-26
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2019-01-02
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