DoD Awards $9.8M for GE Aircraft Engine Parts, Lacking Competition
Contract Overview
Contract Amount: $9,791,616 ($9.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511817177!PBL MATERIAL GE - RESERVED FO
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $9.8 million to GENERAL ELECTRIC COMPANY for work described as: 8511817177!PBL MATERIAL GE - RESERVED FO Key points: 1. Significant contract awarded to General Electric for critical aircraft engine components. 2. Lack of competition raises concerns about potential overpricing and reduced value. 3. The contract duration is one year, with a firm fixed price. 4. This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract's firm fixed price suggests an attempt at cost control. However, without competitive bidding, it's difficult to ascertain if the $9.8 million price represents fair market value compared to potential alternatives.
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 may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these essential aircraft engine parts.
Public Impact
Taxpayers may be overpaying for critical defense components due to a lack of competitive bidding. The reliance on a single supplier for essential parts could pose a long-term supply chain risk. Transparency in defense procurement is reduced when contracts are not openly competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Firm fixed price contract
- Specific end-date for delivery
Sector Analysis
This contract is within the Aircraft Engine and Engine Parts Manufacturing sector, a critical area for defense readiness. Benchmarks for similar sole-source contracts are often higher due to the lack of competitive pressure.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source procurement directly with General Electric.
Oversight & Accountability
The lack of competition suggests potential weaknesses in oversight regarding procurement strategies. Further review is needed to ensure fair and effective use of taxpayer funds.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of transparency in price discovery
- Supply chain dependency risk
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 $9.8 million to GENERAL ELECTRIC COMPANY. 8511817177!PBL MATERIAL GE - RESERVED FO
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation from the Department of Defense, it's impossible to confirm the exact reason. However, such awards warrant scrutiny to ensure they are truly necessary and not simply a matter of convenience or established relationships.
How does the $9.8 million price compare to historical pricing for similar GE engine parts procured competitively?
Direct comparison is challenging without access to historical competitive bid data for identical or highly similar parts. However, sole-source contracts are generally expected to be higher than competitively awarded ones. A detailed cost analysis by the Defense Contract Audit Agency (DCAA) would be necessary to benchmark this price against industry standards and previous competitive awards, if available.
What are the potential risks associated with relying on a single supplier for these critical aircraft engine parts?
Sole-source reliance creates significant risks, including supply chain vulnerability to disruptions (e.g., manufacturing issues, geopolitical events), potential for price escalation over time, and reduced incentive for the supplier to innovate or improve quality. It also limits the government's leverage in negotiations and could impact long-term readiness if the supplier faces financial or operational difficulties.
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
Solicitation ID: SPE4AX21R0001
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: $9,791,616
Exercised Options: $9,791,616
Current Obligation: $9,791,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX21D9416
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-23
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