DoD Awards $76.8M for Aircraft Engine Parts to General Electric, Sole Source
Contract Overview
Contract Amount: $76,866,915 ($76.9M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2022-12-21
End Date: 2023-12-31
Contract Duration: 375 days
Daily Burn Rate: $205.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509604168!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $76.9 million to GENERAL ELECTRIC COMPANY for work described as: 8509604168!PBL MATERIAL GE Key points: 1. Significant award to a single large business vendor. 2. Sole-source procurement raises questions about price discovery. 3. Focus on aircraft engine parts indicates critical defense supply chain component. 4. Potential for higher costs due to lack of competition.
Value Assessment
Rating: questionable
The award of $76.8M for aircraft engine parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or alternative suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method 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 aircraft engine parts.
Public Impact
Ensures continued availability of critical aircraft engine components for the Department of Defense. Supports a major defense contractor, General Electric. Highlights reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures supply of critical parts
- Supports established vendor
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often characterized by high technical requirements and limited vendor pools.
Small Business Impact
This award went to a large business (General Electric Company) and there is no indication of small business participation. The sole-source nature of the award further limits opportunities for small businesses to compete.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that the pricing is justified. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- No small business participation noted
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 $76.9 million to GENERAL ELECTRIC COMPANY. 8509604168!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 $76.9 million.
What is the period of performance?
Start: 2022-12-21. End: 2023-12-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the unavailability of other sources. Without specific details on the justification, it's difficult to fully assess the necessity of this procurement approach and whether it truly served the government's best interest in terms of cost and availability.
How does the pricing compare to industry benchmarks for similar aircraft engine parts?
Benchmarking the pricing for this $76.8M sole-source contract against industry standards is challenging without access to detailed cost breakdowns and comparable contract data. Given the lack of competition, there's a heightened risk that the price may exceed what would be achieved in a competitive environment, potentially impacting overall program costs.
What is the long-term strategy for ensuring competitive sourcing of these critical aircraft engine parts?
The long-term strategy should focus on fostering competition within the aircraft engine parts manufacturing sector. This could involve encouraging new entrants, supporting research and development for alternative components, or breaking down existing sole-source requirements into smaller, more competitive packages where feasible to ensure sustained value and innovation.
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: $76,866,915
Exercised Options: $76,866,915
Current Obligation: $76,866,915
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $6,456,591
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9445
IDV Type: IDC
Timeline
Start Date: 2022-12-21
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-11-29
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