DoD Awards $31.1M for Aircraft Engine Parts to General Electric, No Competition
Contract Overview
Contract Amount: $31,153,622 ($31.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-12-13
End Date: 2026-03-31
Contract Duration: 473 days
Daily Burn Rate: $65.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511052426!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $31.2 million to GENERAL ELECTRIC COMPANY for work described as: 8511052426!PBL MATERIAL GE Key points: 1. Significant contract value for critical aircraft engine components. 2. Sole-source award to General Electric raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Manufacturing sector is vital for defense readiness.
Value Assessment
Rating: questionable
The contract value of $31.1M for aircraft engine parts is substantial. Without competitive data, it's difficult to assess if this price is optimal compared to similar contracts or market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential aircraft engine parts.
Public Impact
Ensures continued availability of critical aircraft engine parts for military operations. 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
- Long-term contract duration
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 essential for maintaining military aviation capabilities.
Small Business Impact
The data indicates no specific set-aside for small businesses. This sole-source award to a large corporation like General Electric likely bypasses opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that justification for bypassing competition is robust.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- 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 $31.2 million to GENERAL ELECTRIC COMPANY. 8511052426!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 $31.2 million.
What is the period of performance?
Start: 2024-12-13. End: 2026-03-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's impossible to confirm the exact reason, but it's crucial for ensuring fair pricing and avoiding unnecessary expenditure.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs because there is no competitive pressure to drive down prices. While the exact difference is unknown without a benchmark, it's reasonable to assume that a competitive bidding process could have yielded a lower price for the government and taxpayers.
How does this contract contribute to the overall effectiveness of military aviation readiness?
This contract directly supports the maintenance and operational readiness of military aircraft by ensuring the supply of essential engine parts. Consistent access to these components is vital for keeping aircraft mission-capable and fulfilling operational requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND 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: $31,153,622
Exercised Options: $31,153,622
Current Obligation: $31,153,622
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9002
IDV Type: IDC
Timeline
Start Date: 2024-12-13
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-09
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