DoD awards $32.5M for aircraft engine parts to General Electric, a sole-source contract
Contract Overview
Contract Amount: $32,488,856 ($32.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2022-12-15
End Date: 2023-12-31
Contract Duration: 381 days
Daily Burn Rate: $85.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509587869!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $32.5 million to GENERAL ELECTRIC COMPANY for work described as: 8509587869!PBL MATERIAL GE Key points: 1. Contract awarded to General Electric for aircraft engine parts. 2. Significant value of $32.5 million. 3. Sole-source award raises questions about competition. 4. Sector is Defense Logistics Agency, specifically aircraft engine manufacturing.
Value Assessment
Rating: fair
The contract value of $32.5 million for aircraft engine parts appears reasonable given the specialized nature of the components. However, without competitive bids, it's difficult to definitively assess if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric, was solicited. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these critical aircraft engine parts.
Public Impact
Military readiness may be impacted if parts are not procured at the best possible value. Taxpayers are potentially overpaying due to the absence of competitive bidding. The defense sector relies on specialized parts, making sole-source awards a recurring concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential for aircraft maintenance
- Awarded to a known manufacturer
Sector Analysis
This contract falls within the Defense sector, specifically supporting the manufacturing of aircraft engines and parts. Spending in this area is critical for military operations but often involves specialized, high-cost components.
Small Business Impact
This contract was awarded directly to General Electric and does not indicate any subcontracting opportunities for small businesses. The sole-source nature further limits the potential for small business involvement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable, and that future procurements explore competitive options where feasible.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Limited opportunity for small business participation.
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 $32.5 million to GENERAL ELECTRIC COMPANY. 8509587869!PBL MATERIAL 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 $32.5 million.
What is the period of performance?
Start: 2022-12-15. End: 2023-12-31.
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 that only one vendor can meet. Agencies must document these reasons thoroughly. For this contract, it's crucial to understand if alternatives like competitive prototyping or phased procurements were explored before resorting to a sole-source decision to ensure taxpayer value.
How does the unit cost compare to historical data or industry benchmarks for similar aircraft engine parts?
Without specific part numbers and detailed specifications, a precise unit cost comparison is challenging. However, given the sole-source nature, it is imperative for the Department of Defense to conduct internal benchmarking against previous similar awards or available industry data. Any significant deviation from historical pricing should trigger a deeper review to ensure the price paid is fair and reasonable.
What is the long-term strategy for ensuring competitive pricing for these critical aircraft engine parts?
The long-term strategy should focus on breaking down complex procurements into smaller, more competitive lots, fostering new entrants into the market, and investing in technology that reduces reliance on single suppliers. For General Electric's parts, exploring options for second-sourcing, encouraging innovation in alternative materials, or developing standardized components could mitigate future sole-source risks and ensure better pricing.
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: $32,488,856
Exercised Options: $32,488,856
Current Obligation: $32,488,856
Actual Outlays: $21,789,925
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $29,380,141
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX19D9400
IDV Type: IDC
Timeline
Start Date: 2022-12-15
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-08-24
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