Navy Awards $27.9M for Aircraft Engine Parts to General Electric, No Competition
Contract Overview
Contract Amount: $27,910,557 ($27.9M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2027-12-31
Contract Duration: 1,094 days
Daily Burn Rate: $25.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: T408 - CIP, USN, RDT&E
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01901
Plain-Language Summary
Department of Defense obligated $27.9 million to GENERAL ELECTRIC COMPANY for work described as: T408 - CIP, USN, RDT&E Key points: 1. Significant contract value for specialized aircraft engine components. 2. Sole-source award to General Electric raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on RDT&E suggests advanced technology development.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Without competitive benchmarks, assessing the pricing reasonableness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft engine parts.
Public Impact
Impacts readiness of naval aviation assets requiring these specific engine parts. General Electric maintains a strong position in the defense aerospace market. Taxpayers may bear increased costs due to the non-competitive nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Sole-source award
Positive Signals
- Essential for naval aviation
- Long-term contract duration
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often characterized by high R&D costs and limited supplier options.
Small Business Impact
The awardee is General Electric Company, a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the delivered parts meet all specifications. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns (CPFF)
- Sole-source dependency
- Limited transparency on pricing justification
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 $27.9 million to GENERAL ELECTRIC COMPANY. T408 - CIP, USN, RDT&E
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 $27.9 million.
What is the period of performance?
Start: 2025-01-01. End: 2027-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of the Navy would need to provide documentation detailing why competition was not feasible or advantageous in this instance, and what steps were taken to explore competitive options before resorting to a sole-source procurement.
How will the Department of the Navy ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Effective oversight is paramount. The Navy must implement rigorous monitoring of General Electric's costs, performance, and adherence to the fixed fee. This includes detailed audits, regular progress reviews, and ensuring that the 'cost' portion of the contract is managed efficiently to prevent unnecessary expenditures and achieve the best possible value despite the lack of competitive pressure.
What is the long-term strategic implication of awarding critical aircraft engine parts on a sole-source basis?
Sole-source awards, especially for critical components, can reduce market competition over time, potentially leading to increased prices and reduced innovation. It may also create dependency on a single supplier, posing a risk to supply chain resilience. The Navy should consider strategies to foster competition or develop alternative sources for future procurements to mitigate these long-term risks.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $39,567,484
Exercised Options: $39,567,484
Current Obligation: $27,910,557
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042123G0004
IDV Type: BOA
Timeline
Start Date: 2025-01-01
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-19
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