DoD's $27.5M Aircraft Engine Parts Contract Awarded to General Electric Company
Contract Overview
Contract Amount: $27,531,971 ($27.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2022-12-22
End Date: 2023-12-31
Contract Duration: 374 days
Daily Burn Rate: $73.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509606961!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $27.5 million to GENERAL ELECTRIC COMPANY for work described as: 8509606961!PBL MATERIAL GE Key points: 1. Significant contract value for aircraft engine components. 2. General Electric Company is a major player in this sector. 3. Potential risk associated with sole-source or limited competition. 4. Spending aligns with the Defense Logistics Agency's mission.
Value Assessment
Rating: fair
The contract value of $27.5M for aircraft engine parts appears substantial. Benchmarking against similar contracts for specialized engine components is necessary to assess if this price is competitive, especially given the fixed-price nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Ensures continued availability of critical aircraft engine parts for military operations. Supports the operational readiness of the Department of Defense's aircraft fleet. Impacts the supply chain for specialized aerospace manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Reliance on a single supplier
Positive Signals
- Ensures critical part availability
- Supports defense readiness
Sector Analysis
This contract 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 and specialized manufacturing capabilities.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability rests with the Defense Logistics Agency to justify the lack of competition.
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 pricing
- Potential for price creep
- Supply chain dependency
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 $27.5 million to GENERAL ELECTRIC COMPANY. 8509606961!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 $27.5 million.
What is the period of performance?
Start: 2022-12-22. End: 2023-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price?
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 conducted a price analysis, potentially including cost breakdowns from the contractor and comparison to historical data or similar commercial items, to validate the reasonableness of the fixed price.
What is the long-term risk associated with relying on a single supplier for critical aircraft engine parts?
Long-term reliance on a single supplier can create significant risks, including supply chain disruptions due to unforeseen events affecting the sole provider, potential price escalations over time as competition is absent, and a lack of incentive for the supplier to innovate or improve efficiency. This dependency can impact operational readiness if parts become unavailable or prohibitively expensive.
How does this contract contribute to the overall effectiveness and readiness of the DoD's aircraft fleet?
This contract is crucial for maintaining the operational effectiveness and readiness of the DoD's aircraft fleet by ensuring the availability of essential engine parts. Consistent access to these components allows for timely maintenance, repair, and overhaul, minimizing aircraft downtime and supporting mission accomplishment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINE ACCESSORIES
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: $27,531,971
Exercised Options: $27,531,971
Current Obligation: $27,531,971
Actual Outlays: $11,535,294
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX21D9416
IDV Type: IDC
Timeline
Start Date: 2022-12-22
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-12-29
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