DoD's $68.5M PBL Service Support Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $68,482,614 ($68.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-12-13
End Date: 2022-12-31
Contract Duration: 383 days
Daily Burn Rate: $178.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508742945!PBL SERVICE SUPPORT
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $68.5 million to GENERAL ELECTRIC COMPANY for work described as: 8508742945!PBL SERVICE SUPPORT Key points: 1. Contract awarded to a single, large incumbent provider. 2. Limited competition due to specialized nature of support. 3. Potential risk of cost escalation without competitive pressure. 4. Sector: Defense Logistics Agency supporting aircraft parts manufacturing.
Value Assessment
Rating: fair
The contract value of $68.5M for one year of support appears high. Benchmarking against similar PBL contracts for specialized aircraft components is needed to assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential support services.
Public Impact
Ensures continued operational readiness for critical aircraft components. Supports a major defense contractor, potentially impacting the broader defense industrial base. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost creep
Positive Signals
- Ensures critical support for defense assets
- Award to established provider with known capabilities
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft parts manufacturing. Spending benchmarks for Performance-Based Logistics (PBL) contracts in this sub-sector are crucial for evaluating cost-effectiveness.
Small Business Impact
The contract was awarded to General Electric Company and does not indicate any subcontracting to small businesses. This represents a missed opportunity for small business participation.
Oversight & Accountability
Oversight is crucial to ensure the sole-source award remains justified and that pricing is reasonable throughout the contract period. The Defense Contract Management Agency (DCMA) likely provides oversight.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost escalation without competitive pressure.
- Lack of small business participation.
- Long-term reliance on a single provider may stifle innovation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.5 million to GENERAL ELECTRIC COMPANY. 8508742945!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 $68.5 million.
What is the period of performance?
Start: 2021-12-13. End: 2022-12-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. The Defense Contract Management Agency (DCMA) or the contracting officer should be performing price analysis, potentially using historical data or independent cost estimates, to ensure the government is not overpaying for the PBL services.
What are the risks associated with relying on a single provider for critical aircraft parts support?
The primary risks include potential price gouging due to lack of competition, supply chain disruptions if the sole provider faces issues, and a lack of incentive for innovation or improved service delivery. This dependence can also limit the government's flexibility in seeking alternative solutions or technologies in the future.
How does this contract contribute to the overall readiness and effectiveness of the supported aircraft systems?
Performance-Based Logistics (PBL) contracts are designed to improve weapon system readiness and reduce costs by focusing on outcomes rather than specific tasks. This contract likely ensures the availability of critical parts and support services, directly contributing to the operational effectiveness and readiness of the aircraft platforms it supports.
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: $68,482,614
Exercised Options: $68,482,614
Current Obligation: $68,482,614
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $10,662,669
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX15D9412
IDV Type: IDC
Timeline
Start Date: 2021-12-13
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-12-15
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