Navy Awards $6.19M for F404 Engine Parts, Sole-Source to General Electric
Contract Overview
Contract Amount: $6,189,815 ($6.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2026-06-30
Contract Duration: 545 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F404 - CIP, COMMON, USN RDT&E
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $6.2 million to GENERAL ELECTRIC COMPANY for work described as: F404 - CIP, COMMON, USN RDT&E Key points: 1. Significant contract awarded to a single, established supplier. 2. Focus on RDT&E for critical aircraft engine components. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Limited competition raises questions about price discovery.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs compared to fixed-price contracts. Benchmarking against similar RDT&E contracts for specialized engine parts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning competition was not sought. This limits the government's ability to leverage market competition to achieve the best possible price and value.
Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers if effective price negotiation and market analysis are not rigorously applied.
Public Impact
Ensures continued readiness and operational capability for naval aircraft. Supports advanced research and development for critical engine technology. Impacts the aerospace manufacturing sector, specifically engine parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Lack of detailed cost breakdown for benchmarking.
Positive Signals
- Award to established, experienced contractor.
- Supports critical RDT&E for defense.
- Ensures operational readiness of naval assets.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is critical for defense readiness, but often involves high R&D costs and specialized manufacturing capabilities, leading to concentrated supplier bases.
Small Business Impact
The contract was not awarded to a small business. The nature of specialized aircraft engine RDT&E often favors large, established manufacturers with extensive technical expertise and infrastructure.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the RDT&E objectives are met efficiently. The sole-source nature requires careful justification and monitoring.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract.
- Potential for cost overruns.
- Limited transparency in price discovery.
- High reliance on contractor performance.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.2 million to GENERAL ELECTRIC COMPANY. F404 - CIP, COMMON, 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 $6.2 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-06-30.
What is the justification for the sole-source award, and how was the fixed fee determined?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. The fixed fee in a Cost Plus Fixed Fee contract is negotiated based on factors like the complexity of the work, the contractor's experience, and the estimated cost. Robust negotiation and cost analysis are essential to ensure the fee is fair and reasonable.
What are the specific risks associated with the Cost Plus Fixed Fee contract type for this RDT&E effort?
The primary risk of a Cost Plus Fixed Fee contract is that the government bears the cost risk. If actual costs exceed estimates, the government pays more. The fixed fee provides the contractor with an incentive to control costs, but the overall profit potential can still be high. For RDT&E, where outcomes are uncertain, this structure can lead to cost overruns if not closely managed.
How will the effectiveness of the RDT&E be measured and ensured given the sole-source nature of the award?
Effectiveness will be measured through clearly defined technical performance metrics and milestones outlined in the contract. Regular progress reviews, technical interchange meetings, and independent government testing will be employed. The sole-source award necessitates stringent oversight to ensure the contractor is meeting all contractual obligations and delivering the intended technological advancements.
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: $6,288,636
Exercised Options: $6,288,636
Current Obligation: $6,189,815
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042123G0004
IDV Type: BOA
Timeline
Start Date: 2025-01-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-06
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