DoD Awards $44.6M F-108 Engine Repair Contract to General Electric
Contract Overview
Contract Amount: $44,555,346 ($44.6M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2022-04-29
End Date: 2024-08-16
Contract Duration: 840 days
Daily Burn Rate: $53.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-108 ENGINE AUGMENTATION REPAIR CONTRACT
Plain-Language Summary
Department of Defense obligated $44.6 million to GENERAL ELECTRIC COMPANY for work described as: F-108 ENGINE AUGMENTATION REPAIR CONTRACT Key points: 1. Contract value of $44.6M for engine repair. 2. General Electric Company is the sole awardee. 3. Risk of limited competition due to specialized nature. 4. Spending falls within the Aircraft Engine Manufacturing sector.
Value Assessment
Rating: good
The contract value of $44.6M appears reasonable for specialized aircraft engine repair services. Benchmarking against similar sole-source or limited-competition contracts for complex aerospace components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the award itself is a delivery order, suggesting a broader contract vehicle. The specific award to General Electric Company implies they are the primary or sole provider for this specific augmentation repair, potentially limiting direct competition for this particular task order.
Taxpayer Impact: Taxpayer funds are utilized for essential defense maintenance. The competitive nature of the initial award vehicle is key to ensuring value, though the specific delivery order's competition needs further review.
Public Impact
Ensures operational readiness of critical F-108 engines for military aircraft. Supports the Department of Defense's aviation capabilities. Impacts the aerospace manufacturing and repair industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source reliance on General Electric for specific repairs.
- Limited transparency on the competitive process for this specific delivery order.
Positive Signals
- Contract supports critical defense infrastructure.
- Awarded under a firm fixed-price structure, providing cost certainty.
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized and capital-intensive industry. Spending benchmarks for similar engine repair contracts are difficult to ascertain without more specific details on the scope of work.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the specialized nature of aircraft engine repair, it is unlikely that small businesses would be primary contractors, though they may participate as subcontractors.
Oversight & Accountability
Oversight is provided by the Department of Defense, specifically the Defense Logistics Agency. The firm fixed-price contract type offers some cost control, but monitoring performance and ensuring adherence to specifications is crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential lack of competition for specific repair tasks.
- Reliance on a single large corporation for critical components.
- Need for detailed performance monitoring.
- Limited visibility into subcontractor involvement.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.6 million to GENERAL ELECTRIC COMPANY. F-108 ENGINE AUGMENTATION REPAIR CONTRACT
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 $44.6 million.
What is the period of performance?
Start: 2022-04-29. End: 2024-08-16.
What was the competitive landscape for the parent contract vehicle under which this delivery order was issued?
The provided data states 'FULL AND OPEN COMPETITION' for the contract type, indicating the initial solicitation was open to all qualified bidders. However, the specific award being a delivery order to General Electric Company suggests that for this particular augmentation repair, GE was selected, potentially due to specialized capabilities or existing agreements. Further details on the parent contract's award process are needed for a complete picture.
Are there any identified risks associated with General Electric's sole-source provision of this specific engine augmentation repair?
The primary risk is potential overpricing due to a lack of direct competition for this specific repair task. Dependence on a single provider can also lead to vulnerabilities in supply chain disruptions or extended lead times if GE faces internal production issues. Ensuring rigorous performance monitoring and exploring alternative repair solutions for future needs are key mitigation strategies.
How does the firm fixed-price structure impact the overall effectiveness and value for taxpayer money in this contract?
The firm fixed-price (FFP) structure is generally effective in controlling costs for the government, as the contractor assumes the risk of cost overruns. This provides budget certainty. For taxpayer value, the effectiveness hinges on the initial price negotiation and the thoroughness of the competition that led to the FFP. If the initial price was competitive and reflects fair market value, FFP enhances value; otherwise, it could lock in a suboptimal price.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
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: $44,555,346
Exercised Options: $44,555,346
Current Obligation: $44,555,346
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX20D9005
IDV Type: IDC
Timeline
Start Date: 2022-04-29
Current End Date: 2024-08-16
Potential End Date: 2024-08-16 00:00:00
Last Modified: 2024-08-02
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