DoD Awards $34.3M for Aircraft Engine Parts to General Electric, Sole Source
Contract Overview
Contract Amount: $34,285,221 ($34.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-12-19
End Date: 2024-12-31
Contract Duration: 378 days
Daily Burn Rate: $90.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510334969!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $34.3 million to GENERAL ELECTRIC COMPANY for work described as: 8510334969!PBL MATERIAL GE Key points: 1. Significant award to a single, established contractor. 2. Focus on critical aircraft engine components suggests high demand. 3. Sole-source nature raises questions about price competitiveness. 4. Defense Logistics Agency is a key buyer in this sector.
Value Assessment
Rating: fair
The award of $34.3 million for aircraft engine parts is substantial. Without competitive bids, it's difficult to assess if this price represents fair value compared to market alternatives or previous contracts for similar components.
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 Company, was considered. This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher spending than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Ensures continued availability of critical aircraft engine parts for military operations. Supports a major defense contractor, potentially impacting jobs and supply chains. Highlights the reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to no competitive bidding.
- Potential for overpayment without market comparison.
Positive Signals
- Ensures supply of critical defense components.
- Supports established contractor with proven capabilities.
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is often characterized by high R&D costs, long production cycles, and significant reliance on a few key manufacturers.
Small Business Impact
This contract was awarded directly to General Electric Company, a large corporation. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is justified and that future opportunities for competition are explored where feasible.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in cost justification
- No small business participation indicated
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 $34.3 million to GENERAL ELECTRIC COMPANY. 8510334969!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 $34.3 million.
What is the period of performance?
Start: 2023-12-19. End: 2024-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Defense Logistics Agency should have documentation supporting this decision. Fair pricing in sole-source contracts is often assessed through cost analysis, comparison to similar historical contracts, or by negotiating profit margins. Oversight is crucial to ensure these processes are robust.
What is the potential risk to the DoD if General Electric were unable to fulfill this contract, given the sole-source nature?
The risk to the DoD is significant due to the sole-source nature. If General Electric cannot fulfill the contract, the agency would face substantial delays in acquiring critical aircraft engine parts. Finding an alternative source would be difficult and time-consuming, potentially requiring extensive validation and certification processes, leading to operational readiness issues and increased costs.
How does this sole-source award impact the long-term strategy for ensuring competitive sourcing of aircraft engine parts?
Sole-source awards, while sometimes necessary, can disincentivize competition in the long run if they become a pattern. The DoD should actively seek opportunities to foster competition for aircraft engine parts, perhaps by encouraging new entrants, supporting dual-sourcing strategies, or investing in technologies that reduce reliance on single suppliers. This ensures greater resilience and cost-effectiveness over time.
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: $34,285,221
Exercised Options: $34,285,221
Current Obligation: $34,285,221
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9002
IDV Type: IDC
Timeline
Start Date: 2023-12-19
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-06-04
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