DoD Awards $5.78M for Aircraft Parts to General Electric, No Competition
Contract Overview
Contract Amount: $5,783,904 ($5.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-12-17
End Date: 2026-12-16
Contract Duration: 364 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLADE,COMPRESSOR,AI
Place of Performance
Location: ERLANGER, KENTON County, KENTUCKY, 41018
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $5.8 million to GENERAL ELECTRIC COMPANY for work described as: BLADE,COMPRESSOR,AI Key points: 1. Significant award for critical aircraft components. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense/Aerospace manufacturing.
Value Assessment
Rating: questionable
The award of $5.78M for aircraft parts lacks a clear benchmark due to the absence of competitive bidding. Without comparable contract data, assessing if this price is reasonable against similar procurements is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts.
Public Impact
Ensures continued availability of critical aircraft components for the Department of Defense. Supports a major defense contractor, General Electric. Potential for increased defense spending without competitive justification.
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 contractor
Sector Analysis
This award falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often high due to specialized requirements and long product lifecycles.
Small Business Impact
The data indicates this award was not set aside for small businesses and was awarded to a large corporation, General Electric. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, despite the absence of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- No small business set-aside identified
Tags
aircraft-manufacturing, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to GENERAL ELECTRIC COMPANY. BLADE,COMPRESSOR,AI
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 $5.8 million.
What is the period of performance?
Start: 2025-12-17. End: 2026-12-16.
What is the justification for the sole-source award of these aircraft parts?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of alternative sources. Without further details on the specific parts and the procurement process, it's difficult to ascertain the precise reason. However, agencies are required to document and justify sole-source procurements to ensure they are necessary and in the government's best interest.
What is the potential risk to the government if the pricing is not competitive?
The primary risk to the government is financial waste. If the price is not competitive, taxpayers may be overpaying for the parts, diverting funds that could be used for other critical needs or programs. This also sets a precedent for future sole-source awards, potentially eroding competitive pricing across similar procurements.
How does this award impact the overall effectiveness of defense spending?
This award's impact on effectiveness is mixed. It ensures the supply of necessary components, contributing to operational readiness. However, the lack of competition raises concerns about the efficient use of funds. If funds are not optimally utilized due to non-competitive pricing, it could indirectly affect the overall effectiveness of defense spending by reducing the quantity or quality of goods and services acquired within budget.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
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: $5,783,904
Exercised Options: $5,783,904
Current Obligation: $5,783,904
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: SPE4A122G0010
IDV Type: BOA
Timeline
Start Date: 2025-12-17
Current End Date: 2026-12-16
Potential End Date: 2026-12-16 00:00:00
Last Modified: 2025-12-18
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