DoD's $137M GE Aircraft Engine Contract: 7-Year Duration, RDTE/Aircraft Research Focus
Contract Overview
Contract Amount: $23,544,593 ($23.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 1999-09-30
End Date: 2006-12-29
Contract Duration: 2,647 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199912!1700!5030!A8104!NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1479 !A!*!* !19990930!20020630!137488664!001367960!001367960!N!07482!GENERAL ELECTRIC COMPANY INC !1 NEUMANN WAY !CINCINNATI !OH!45215!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !0001!+000000100000!N!N!000000000000!AC12!RDTE/AIRCRAFT-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!002!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: PATUXENT RIVER, ST. MARY'S County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to GENERAL ELECTRIC COMPANY for work described as: 199912!1700!5030!A8104!NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1479 !A!*!* !19990930!20020630!137488664!001367960!001367960!N!07482!GENERAL ELECTRIC COMPANY INC !1 NEUMANN WAY !CINCINNATI !OH!45215!60650!037!24!PATUXENT RIVER NAS !ST. MA… Key points: 1. Contract awarded to General Electric Company for aircraft engine research and development. 2. Significant 7-year duration suggests a long-term, complex project. 3. Full and open competition was utilized, indicating a competitive bidding process. 4. The sector is primarily Research, Development, Test, and Evaluation (RDTE) within Defense.
Value Assessment
Rating: fair
The contract's total value of $137.4 million over nearly 7 years averages to approximately $19.6 million annually. Without specific benchmarks for RDTE contracts of this nature, it's difficult to definitively assess pricing. However, the duration and the nature of R&D can lead to cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and selecting a vendor. This method generally promotes competitive pricing, though the specific nature of advanced R&D can make direct price comparisons challenging.
Taxpayer Impact: While competition was employed, the long duration and R&D focus present potential risks for cost escalation, which could impact taxpayer investment over the contract's life.
Public Impact
Taxpayers are funding advanced aircraft engine research, potentially leading to future technological advancements in aviation. The contract supports a major defense contractor, contributing to jobs and economic activity in the aerospace sector. Long-term R&D investments can yield significant national security benefits through improved military capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Long contract duration increases risk of cost escalation and scope creep.
- R&D projects inherently have uncertain outcomes and potential for budget overruns.
- Lack of specific performance metrics makes it hard to gauge immediate value.
Positive Signals
- Awarded through full and open competition, suggesting fair market pricing.
- Supports critical defense research and development.
- Long-term commitment indicates a strategic investment in future capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for aircraft. Spending in this area is critical for maintaining technological superiority but can be subject to significant cost fluctuations due to the experimental nature of the work.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large prime contractors like General Electric typically manage complex R&D efforts, with subcontracting opportunities potentially flowing down to smaller entities.
Oversight & Accountability
The contract was awarded by the Naval Air Warfare Center, part of the Department of the Navy. Oversight would typically involve program managers monitoring progress, costs, and adherence to research objectives throughout the contract's lifecycle.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to R&D complexity.
- Long contract duration increases exposure to changing technological needs and economic conditions.
- Uncertainty in achieving specific research objectives within the allocated timeframe and budget.
- Lack of detailed performance metrics in the summary data hinders immediate value assessment.
Tags
department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to GENERAL ELECTRIC COMPANY. 199912!1700!5030!A8104!NAVAL AIR WARFARE CENTER, AIRCRA!N0042199C1479 !A!*!* !19990930!20020630!137488664!001367960!001367960!N!07482!GENERAL ELECTRIC COMPANY INC !1 NEUMANN WAY !CINCINNATI !OH!45215!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !0001!+000000100000!N!N!000000000000!AC12!RDTE/AIRCRAFT-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!0
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 $23.5 million.
What is the period of performance?
Start: 1999-09-30. End: 2006-12-29.
What specific technological advancements or capabilities are expected from this RDTE contract, and how will their success be measured?
The contract focuses on 'AIRCRAFT-APPLIED RESEARCH' under the 'RDTE/AIRCRAFT-APPLIED RESEARCH' category. Specific technological advancements are not detailed in the provided data. Success measurement would likely involve milestones related to prototype development, performance testing, and demonstration of new functionalities or efficiencies in aircraft engine technology, as defined in the contract's statement of work.
Given the 7-year duration and R&D nature, what mechanisms are in place to manage potential cost overruns and ensure the project remains within budget?
As a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's allowable costs plus a fixed fee. While the fee is fixed, the total cost can vary. Mechanisms to manage overruns include rigorous oversight, phased funding releases tied to milestones, and contract modification reviews to ensure continued necessity and cost-effectiveness.
How does the $137.4 million investment compare to similar RDTE contracts for aircraft engine development, and what is the projected return on investment for the DoD?
Benchmarking this specific RDTE contract value against similar, publicly available contracts is challenging due to the proprietary nature of advanced aerospace R&D and varying project scopes. The return on investment is primarily measured in enhanced national security capabilities, potential for future technological leadership, and improved operational efficiency for military aircraft, rather than direct financial returns.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-09-30
Current End Date: 2006-12-29
Potential End Date: 2006-12-29 00:00:00
Last Modified: 2011-03-17
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