DoD awards $22.7M for T700-GE-401C Engines, with no competition, impacting price discovery
Contract Overview
Contract Amount: $22,755,650 ($22.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-09-13
End Date: 2028-12-31
Contract Duration: 1,936 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENGINE / T700-GE-401C
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $22.8 million to GENERAL ELECTRIC COMPANY for work described as: ENGINE / T700-GE-401C Key points: 1. High contract value for specialized aircraft engines. 2. Sole-source award limits competitive pricing pressure. 3. Long-term contract (2023-2028) suggests critical need. 4. No small business participation noted.
Value Assessment
Rating: questionable
Pricing is not benchmarked due to lack of competitive data. The firm fixed price contract aims to control costs, but without competition, it's difficult to assess if the price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is sole-source, meaning only one vendor, General Electric Company, was considered. This significantly limits price discovery and competitive negotiation, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher prices than if multiple vendors were involved, impacting taxpayer funds.
Public Impact
Ensures continued availability of critical aircraft engine components for military operations. Potential for increased costs due to sole-source nature, affecting defense budget allocation. Lack of transparency in pricing due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Firm fixed price contract
- Long contract duration ensures supply
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this specialized area is often dominated by a few key manufacturers due to high barriers to entry and proprietary technology.
Small Business Impact
There is no indication of small business participation in this contract. The specialized nature of aircraft engines and the sole-source award likely exclude smaller businesses.
Oversight & Accountability
The Defense Contract Management Agency is responsible for oversight. The sole-source nature warrants close scrutiny to ensure fair pricing and performance, despite the lack of competition.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bidders.
- No small business involvement.
- Long-term commitment without competitive validation.
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 $22.8 million to GENERAL ELECTRIC COMPANY. ENGINE / T700-GE-401C
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2023-09-13. End: 2028-12-31.
What is the justification for the sole-source award, and has an alternatives analysis been performed?
The justification for a sole-source award is typically based on factors like unique capabilities, proprietary technology, or lack of viable alternatives. An alternatives analysis would assess if other sources could meet the requirement. Without this information, it's difficult to fully evaluate the necessity of a sole-source approach and its potential cost implications.
How does the firm fixed price compare to historical pricing for this engine model?
While a firm fixed price contract aims to stabilize costs, comparing it to historical data is crucial for assessing value. Without access to historical pricing or benchmarks for similar sole-source contracts, it's challenging to determine if the current price reflects fair market value or if it has escalated due to the lack of competitive pressure.
What is the long-term strategy for ensuring competitive sourcing for future engine needs?
Given the sole-source nature of this award, a forward-looking strategy is essential. The DoD should explore options for fostering competition in the future, such as encouraging new entrants, investing in alternative technologies, or breaking down requirements into smaller, more accessible contracts for a wider range of suppliers.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042120R0132
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: $22,755,650
Exercised Options: $22,755,650
Current Obligation: $22,755,650
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042120D0115
IDV Type: IDC
Timeline
Start Date: 2023-09-13
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-08-18
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)