DoD awards $34.7M for Aircraft Engine Parts, Sole-Source to General Electric
Contract Overview
Contract Amount: $34,703,651 ($34.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2019-12-26
End Date: 2023-03-31
Contract Duration: 1,191 days
Daily Burn Rate: $29.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER SPRRA1-20-F-0070, NSN 2840-01-513-3538, PART NUMBER 3048T90G01, QTY 240 EACH
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $34.7 million to GENERAL ELECTRIC COMPANY for work described as: DELIVERY ORDER SPRRA1-20-F-0070, NSN 2840-01-513-3538, PART NUMBER 3048T90G01, QTY 240 EACH Key points: 1. Significant award for critical aircraft engine components. 2. Sole-source award raises questions about price competition. 3. Long contract duration (1191 days) may impact price. 4. No small business participation noted.
Value Assessment
Rating: questionable
The total award of $34.7M for 240 units suggests a high per-unit cost. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized aircraft engine parts.
Cost Per Unit: $144,598.54
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these critical aircraft engine parts.
Public Impact
Ensures continued availability of essential aircraft engine parts for military operations. Potential for higher costs due to lack of competitive bidding. Impacts readiness if parts are critical and pricing is not optimized. General Electric maintains a sole supplier position for this component.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High per-unit cost
- Long contract duration
- No small business participation
Positive Signals
- Ensures supply of critical parts
- Firm fixed price contract
Sector Analysis
This award falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector is critical for defense readiness, but often involves specialized, high-cost components where competition can be limited.
Small Business Impact
The data indicates no small business participation in this contract. This is common for highly specialized defense manufacturing, but it represents a missed opportunity to support small businesses within the defense supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable, and that future opportunities for competition are explored.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High per-unit cost requires justification.
- Long contract duration may not reflect current market prices.
- Lack of small business involvement.
- Potential for price creep over the contract period.
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 $34.7 million to GENERAL ELECTRIC COMPANY. DELIVERY ORDER SPRRA1-20-F-0070, NSN 2840-01-513-3538, PART NUMBER 3048T90G01, QTY 240 EACH
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 $34.7 million.
What is the period of performance?
Start: 2019-12-26. End: 2023-03-31.
What is the justification for the sole-source award, and has a market research report been conducted to confirm the lack of viable alternatives?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. A thorough market research report is crucial to validate these claims and ensure no other vendors could meet the requirement, thereby safeguarding taxpayer funds from unnecessary inflation due to restricted competition.
How does the per-unit cost of $144,598.54 compare to industry benchmarks for similar aircraft engine parts, considering the sole-source nature of the contract?
Benchmarking this per-unit cost is challenging without competitive data. However, given it's a sole-source award to General Electric for a specific part (3048T90G01), the price is likely higher than if it were competed. Independent cost analysis or comparison with similar, albeit not identical, parts from other manufacturers would be necessary to assess its reasonableness.
What measures are in place to ensure the long-term effectiveness and reliability of these parts, given the extended delivery period and sole-source provider?
Effectiveness is typically ensured through stringent quality control, testing, and adherence to specifications outlined in the contract. The long duration (1191 days) suggests a sustained need, and oversight should focus on performance metrics, defect rates, and timely delivery. The sole-source aspect means the government relies heavily on GE's quality assurance processes.
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,703,651
Exercised Options: $34,703,651
Current Obligation: $34,703,651
Actual Outlays: $15,405,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX12D9400
IDV Type: IDC
Timeline
Start Date: 2019-12-26
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 12:03:00
Last Modified: 2022-06-09
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