DoD Awards $22.7M for Aircraft Engine Parts to General Electric, Sole Source
Contract Overview
Contract Amount: $22,705,396 ($22.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-12-08
End Date: 2027-07-31
Contract Duration: 1,331 days
Daily Burn Rate: $17.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES, NSN: 2840-01-515-3538
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $22.7 million to GENERAL ELECTRIC COMPANY for work described as: SPARES, NSN: 2840-01-515-3538 Key points: 1. Significant contract value for specialized aircraft engine components. 2. Sole-source award to General Electric raises competition concerns. 3. Long-term contract (2023-2027) indicates ongoing need. 4. Focus on aircraft engine parts manufacturing falls within a critical defense sector.
Value Assessment
Rating: fair
The contract value of $22.7 million is substantial for specialized parts. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous awards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these critical aircraft engine parts.
Public Impact
Ensures continued availability of critical aircraft engine components for military readiness. Supports a major defense contractor, potentially impacting supply chain stability. Raises questions about the government's ability to secure best value for taxpayer dollars on sole-source procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Ensures supply of critical parts
- Long-term contract provides stability
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a vital component of the aerospace and defense industry. Spending in this area is often characterized by high R&D costs, specialized manufacturing, and significant reliance on established prime contractors.
Small Business Impact
The contract was awarded to General Electric Company, a large business. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government explored all avenues for competition and achieved a fair price.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Lack of small business participation.
- Long-term contract duration may not reflect evolving market conditions.
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 $22.7 million to GENERAL ELECTRIC COMPANY. SPARES, NSN: 2840-01-515-3538
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 $22.7 million.
What is the period of performance?
Start: 2023-12-08. End: 2027-07-31.
What justification was provided for the sole-source award, and were alternative sources thoroughly investigated?
The provided data indicates a sole-source award ('NOT COMPETED'). A detailed justification would typically be required by federal acquisition regulations, outlining why competition was not feasible or practicable. This could include factors like unique capabilities, proprietary technology, or urgent needs. Without access to the full contract file, it's impossible to confirm the specific justification or the extent of alternative source investigation.
How does the awarded price compare to industry benchmarks for similar aircraft engine parts, considering the sole-source nature?
Benchmarking is challenging for sole-source awards as direct comparisons are difficult. While the contract value is $22.7 million, the lack of competition means we cannot definitively say if it's a fair price. A thorough analysis would require comparing the specific NSN and part specifications against publicly available pricing data for similar components, if any exist, and considering the potential cost savings that competitive bidding might have yielded.
What is the long-term strategic impact of relying on a sole-source provider for these critical engine parts?
Sole-source reliance can create long-term risks, including vendor lock-in, potential price escalation over time, and reduced innovation due to lack of competitive pressure. While it ensures a consistent supply, it diminishes the government's leverage and flexibility. Strategies to mitigate this might include developing alternative sources or in-house capabilities over the contract's duration.
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: $22,705,396
Exercised Options: $22,705,396
Current Obligation: $22,705,396
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: SPRRA121D0029
IDV Type: IDC
Timeline
Start Date: 2023-12-08
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 12:07:00
Last Modified: 2025-04-11
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