DoD Awards $109.7M for Aircraft Engine Parts to General Electric, Lacking Competition
Contract Overview
Contract Amount: $109,666,044 ($109.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-12-20
End Date: 2026-01-31
Contract Duration: 407 days
Daily Burn Rate: $269.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511065262!PBL MATERIAL GE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $109.7 million to GENERAL ELECTRIC COMPANY for work described as: 8511065262!PBL MATERIAL GE Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing. 3. High-risk award due to sole-source nature and long duration. 4. Sector is critical for defense readiness, impacting aircraft availability.
Value Assessment
Rating: questionable
The contract value of $109.7M over 407 days appears high given the lack of competitive bidding. Benchmarking against similar sole-source awards for aircraft engine parts is difficult but suggests potential for inflated pricing without market pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The absence of competition likely results in higher costs for taxpayers, as the government may be paying a premium for these critical aircraft engine parts.
Public Impact
Taxpayers may be overpaying for essential defense components. Potential impact on military readiness if parts are not procured efficiently. Lack of transparency in pricing due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- No small business participation indicated
Positive Signals
- Critical defense component
- Awarded to established manufacturer
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, crucial for maintaining the operational readiness of military aircraft. Spending benchmarks in this specialized area are often influenced by proprietary technology and high barriers to entry.
Small Business Impact
There is no indication of small business participation in this contract. The award to a large, established company like General Electric suggests that opportunities for small businesses in this specific procurement were either non-existent or not pursued.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability mechanisms should focus on validating the necessity of the sole-source justification and the reasonableness of the final price.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- No small business participation.
- Long contract duration increases risk.
- Lack of transparency in cost justification.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.7 million to GENERAL ELECTRIC COMPANY. 8511065262!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 $109.7 million.
What is the period of performance?
Start: 2024-12-20. End: 2026-01-31.
What is the justification for this sole-source award, and has it been thoroughly vetted?
The justification for this sole-source award is not provided in the data. A thorough vetting process by the Department of Defense is crucial to ensure that competition was genuinely not feasible and that this approach is in the best interest of the government and taxpayers. Without this information, it's difficult to assess the validity of the procurement strategy.
How does the awarded price compare to historical pricing for similar components or alternative solutions?
Direct comparison is challenging due to the sole-source nature and lack of detailed cost breakdowns. However, the absence of competition suggests the price may be higher than if multiple vendors had bid. A review of internal cost estimates and historical data for comparable parts, even from different platforms, would be necessary to assess price reasonableness.
What is the potential impact on aircraft maintenance schedules and operational readiness if these parts are not delivered on time?
The timely delivery of these critical aircraft engine parts is paramount for maintaining operational readiness. Any delays could significantly disrupt maintenance schedules, leading to reduced aircraft availability and potentially impacting mission capabilities. The long duration of the contract (407 days) underscores the importance of robust delivery tracking and performance management.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
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: $109,666,044
Exercised Options: $109,666,044
Current Obligation: $109,666,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9445
IDV Type: IDC
Timeline
Start Date: 2024-12-20
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-30
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