DoD's $77.8M Contract for PBL Material GE with General Electric Company Raises Questions on Competition
Contract Overview
Contract Amount: $77,783,805 ($77.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-12-15
End Date: 2024-12-31
Contract Duration: 382 days
Daily Burn Rate: $203.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510334562!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $77.8 million to GENERAL ELECTRIC COMPANY for work described as: 8510334562!PBL MATERIAL GE Key points: 1. Significant contract value of $77.8 million awarded to General Electric Company. 2. Lack of competition noted, with the contract type listed as 'NOT COMPETED'. 3. Potential risk associated with sole-source or limited competition procurement. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $77.8 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft engine parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited or potentially sole-source award. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition could lead to inflated prices, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be overpaying for critical aircraft engine parts due to lack of competition. The Department of Defense relies on a single source for essential materials, potentially creating supply chain vulnerabilities. Transparency in defense procurement is reduced when contracts are not openly competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Sole-Source Risk
Positive Signals
- Essential Defense Procurement
- Established Contractor
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for this sector are often high due to specialized manufacturing and R&D.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award. The awardee is a large corporation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition is sound and that fair pricing was achieved through alternative means.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award process
- Dependency on a single contractor
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 $77.8 million to GENERAL ELECTRIC COMPANY. 8510334562!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 $77.8 million.
What is the period of performance?
Start: 2023-12-15. End: 2024-12-31.
What is the justification for not competing this $77.8 million contract for aircraft engine parts?
The justification for not competing this significant contract is crucial for understanding the procurement strategy. Without a competitive process, it's imperative to verify that the selected vendor, General Electric Company, was the only viable option or that specific circumstances (e.g., urgent need, unique capability) necessitated a sole-source or limited-source award to ensure national security requirements were met effectively and efficiently.
What are the potential risks associated with awarding a large contract without competition?
Awarding large contracts without competition carries several risks. It can lead to higher prices than would be achieved through a competitive bidding process, potentially resulting in inefficient use of taxpayer funds. Furthermore, it can stifle innovation by reducing the incentive for contractors to offer better solutions or lower costs. Over-reliance on a single source can also create supply chain vulnerabilities if that source faces disruptions.
How does this contract contribute to the overall effectiveness of the Department of Defense's aircraft readiness?
This contract is for PBL Material GE, likely referring to Performance-Based Logistics for General Electric aircraft engines. Ensuring a steady supply of necessary materials through this contract is vital for maintaining the operational readiness and availability of critical aircraft. Effective execution by General Electric is essential for minimizing downtime and ensuring that military aviation assets are mission-capable when needed.
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: $77,783,805
Exercised Options: $77,783,805
Current Obligation: $77,783,805
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $12,651,403
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9445
IDV Type: IDC
Timeline
Start Date: 2023-12-15
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-10-31
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