DoD's $130M PBL Service Support Contract Awarded to General Electric Company Faces Scrutiny
Contract Overview
Contract Amount: $129,587,506 ($129.6M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2018-02-20
End Date: 2018-11-30
Contract Duration: 283 days
Daily Burn Rate: $457.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8505215248!PBL SERVICE SUPPORT
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $129.6 million to GENERAL ELECTRIC COMPANY for work described as: 8505215248!PBL SERVICE SUPPORT Key points: 1. The contract, valued at over $129 million, supports PBL Service requirements. 2. General Electric Company is the sole awardee, raising questions about competition. 3. The 'NOT COMPETED' award type indicates a lack of competitive bidding. 4. The contract duration is 283 days, with a significant base value. 5. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract's value of $129.5 million for 283 days is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar service support contracts in the aerospace industry.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning it was awarded directly to General Electric Company without soliciting bids from other potential suppliers. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these PBL services, as there was no market pressure to drive down costs.
Public Impact
Potential for increased costs to taxpayers due to sole-source award. Impact on readiness if essential support services are not procured at the best possible price. Missed opportunity to foster competition and innovation among other aerospace manufacturers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense logistics
- Awarded to a known industry leader
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining military aviation readiness. Spending benchmarks in this specialized area are hard to establish without competitive data.
Small Business Impact
The award to General Electric Company, a large corporation, does not appear to involve small business participation based on the provided data. This contract missed an opportunity to support small businesses in the aerospace supply chain.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source procurement was valid and that the pricing is reasonable, despite the absence of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Missed opportunity for small business engagement.
- Limited market research evident.
- High contract value warrants scrutiny.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.6 million to GENERAL ELECTRIC COMPANY. 8505215248!PBL SERVICE SUPPORT
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 $129.6 million.
What is the period of performance?
Start: 2018-02-20. End: 2018-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if other qualified vendors were assessed or if specific circumstances necessitated bypassing the competitive process. This lack of transparency raises concerns about potential inefficiencies and missed cost-saving opportunities for the Department of Defense.
How does the per-unit cost or overall pricing of this contract compare to industry benchmarks for similar PBL service support, given the lack of competitive bids?
Direct comparison to industry benchmarks is challenging due to the sole-source nature of this award. Without competitive bids, there's no market-driven price discovery. An independent cost analysis or review of historical pricing for comparable services, adjusted for scope and duration, would be necessary to assess the reasonableness of the $129.5 million price tag.
What are the potential long-term implications for defense readiness and budget if critical support services are consistently procured through non-competitive means?
Consistent sole-source procurement can lead to inflated costs, reduced innovation, and a lack of vendor accountability over time. This can strain defense budgets and potentially compromise readiness if essential services are not procured efficiently or if key suppliers become complacent. It also limits opportunities for emerging companies to enter the defense market.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $129,587,506
Exercised Options: $129,587,506
Current Obligation: $129,587,506
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX15D9412
IDV Type: IDC
Timeline
Start Date: 2018-02-20
Current End Date: 2018-11-30
Potential End Date: 2018-11-30 00:00:00
Last Modified: 2018-10-01
More Contracts from General Electric Company
- 200607!387702!1700!n00019!naval AIR Systems Command !N0001906C0088 !A!N! !N! ! !20060424!20090131!001408509!001408509!001367960!n!general Electric Company !1000 Western AVE !lynn !ma!01905!37490!009!25!lynn !essex !mass !+000018238000!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !000 !NOT Discernable !336412!E! !3! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! !Y!1719!N00019!0001! ! — $2.4B (Department of Defense)
- Adaptive Engine Transition Program (aetp) — $2.1B (Department of Defense)
- 200608!001069!2100!w58rgz!usa Aviation and Missile Command!w58rgz06c0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!n!general Electric Company !1 Neumann WAY !cincinnati !oh!45215!15000!061!39!cincinnati !hamilton !ohio !+000177879422!n!n!000000000000!r706!logistics Support Services !a1b!aircraft Engines and Spares !000 !NOT Discernable !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1g!z!n!z! ! !Y!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! ! — $1.6B (Department of Defense)
- 200210!004379!1700!AA427 !naval AIR Systems Command !N0001901C0147 !A!N! !N!P00001 !20020508!20031130!001408509!001408509!001367960!n!general Electric Company Inc !1000 Western AVE !lynn !ma!01910!37490!009!25!lynn !essex !mass !+000060619860!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !2bjn!f414-Ge-400 !336412!E! !1! ! !C! ! !99990909!B! ! !A! !d!n!j!1!001!n!1a!a!w!f! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! ! ! ! !0001! — $1.5B (Department of Defense)
- F414-GE-400 Engines — $1.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)