DoD Awards $59.7M for PBL Service Support to General Electric Company
Contract Overview
Contract Amount: $59,724,770 ($59.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-12-16
End Date: 2022-12-31
Contract Duration: 380 days
Daily Burn Rate: $157.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508753632!PBL SERVICE SUPPORT GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $59.7 million to GENERAL ELECTRIC COMPANY for work described as: 8508753632!PBL SERVICE SUPPORT GE Key points: 1. Contract awarded to General Electric Company for aircraft engine support. 2. Significant value of $59.7 million over a 380-day period. 3. No small business participation noted. 4. The contract falls under the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $59.7 million for 380 days of service support appears to be within a reasonable range for specialized aircraft engine maintenance. Benchmarking against similar Performance-Based Logistics (PBL) contracts for complex aerospace systems is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. The lack of competition may impact price discovery and potentially lead to higher costs for the government compared to a fully competitive scenario.
Taxpayer Impact: The absence of competition raises concerns about maximizing taxpayer value. Further justification for the limited competition is needed to ensure fair pricing.
Public Impact
Ensures continued operational readiness of critical aircraft engines. Supports the Department of Defense's aviation capabilities. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
Positive Signals
- Essential service support for critical assets
- Long-term relationship with a key supplier
Sector Analysis
This contract is within the Aircraft Engine and Engine Parts Manufacturing sector, which is critical for defense readiness. Spending in this sector often involves high-value, specialized components and services, with significant R&D investment.
Small Business Impact
The contract explicitly states no small business participation. This indicates a missed opportunity to support small businesses within the defense supply chain for this particular award.
Oversight & Accountability
The award was made as a delivery order under an existing contract. Oversight should focus on the performance metrics and cost controls within the Performance-Based Logistics framework to ensure accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of small business involvement.
- Potential for vendor lock-in due to specialized services.
- Reliance on a single supplier for critical engine support.
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 $59.7 million to GENERAL ELECTRIC COMPANY. 8508753632!PBL SERVICE SUPPORT GE
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 $59.7 million.
What is the period of performance?
Start: 2021-12-16. End: 2022-12-31.
What is the justification for awarding this contract on a limited competition basis, and how was the price determined to be fair and reasonable?
The justification for limited competition typically stems from factors such as unique capabilities of the contractor, urgency of need, or prior investments in specialized equipment. Price reasonableness is usually determined through market research, historical pricing, or comparison with similar contracts, though the absence of competition can make this assessment more challenging.
What are the specific performance metrics and associated incentives or penalties within this PBL contract to ensure effective service delivery?
Performance-Based Logistics contracts are designed around measurable outcomes rather than specific tasks. Key performance indicators (KPIs) might include engine availability, turnaround time for repairs, or parts delivery speed. The contract should detail these KPIs, along with incentive clauses for exceeding targets and potential penalties for failing to meet minimum performance standards.
How does the cost of this contract compare to potential costs if it were awarded through full and open competition, considering the specialized nature of aircraft engine support?
While full and open competition generally drives down prices, the highly specialized nature of aircraft engine support, often requiring unique technical expertise and proprietary data, can limit the pool of qualified bidders. The cost difference would depend on the number of capable competitors and the specific market dynamics for these services.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $59,724,770
Exercised Options: $59,724,770
Current Obligation: $59,724,770
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9002
IDV Type: IDC
Timeline
Start Date: 2021-12-16
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-12-13
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