DoD Awards $28.3M for Aircraft Frames to General Electric, Lacking Competition
Contract Overview
Contract Amount: $28,296,947 ($28.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2027-05-31
Contract Duration: 1,339 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FRAME,FRONT,AIRCRAF
Place of Performance
Location: WEST CHESTER, BUTLER County, OHIO, 45069
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $28.3 million to GENERAL ELECTRIC COMPANY for work described as: FRAME,FRONT,AIRCRAF Key points: 1. Significant award to a single, large defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration (over 3 years) warrants close monitoring. 4. Hardware manufacturing sector, critical for defense readiness.
Value Assessment
Rating: questionable
The award value of $28.3M for aircraft frames is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for comparable components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly reduces price discovery opportunities and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests potential overpayment, directly impacting taxpayer funds allocated for defense procurement.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Reliance on a single supplier for critical aircraft components could pose supply chain risks. The long-term nature of the contract requires ongoing scrutiny to ensure continued value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Award to established contractor
- Critical defense component
Sector Analysis
This award falls within the hardware manufacturing sector, specifically for aircraft components. Spending in this area is crucial for maintaining military readiness, but competitive sourcing is vital to control costs.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status necessitates robust oversight from the Department of Defense and the Defense Logistics Agency to ensure the contractor meets all performance requirements and pricing remains justifiable throughout the contract's life.
Related Government Programs
- Hardware Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for price inflation
- Long-term dependency on one supplier
- Limited transparency in price determination
Tags
hardware-manufacturing, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to GENERAL ELECTRIC COMPANY. FRAME,FRONT,AIRCRAF
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 $28.3 million.
What is the period of performance?
Start: 2023-09-30. End: 2027-05-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should have documented reasons for this decision. To ensure fair pricing, mechanisms like cost analysis, price negotiation, and potentially post-award audits are crucial. Regular performance reviews and market research should also be conducted to validate the ongoing necessity and cost-effectiveness of the sole-source arrangement.
What are the potential risks associated with relying on a single supplier for these critical aircraft frames over a 3+ year period?
The primary risks include supply chain disruptions if the sole supplier faces production issues, quality control problems, or financial instability. Price escalation is also a concern, as the government lacks competitive leverage. Furthermore, dependence on one vendor can stifle innovation and prevent the adoption of potentially superior or more cost-effective alternatives that might emerge in the market.
How will the effectiveness of this contract be measured, particularly given the lack of initial competition?
Effectiveness will be measured by adherence to delivery schedules, quality standards (e.g., defect rates, compliance with specifications), and performance metrics outlined in the contract. While initial competition was absent, ongoing performance reviews, cost audits, and comparisons with industry benchmarks (where available) can help assess value. Feedback from end-users regarding the performance of the aircraft frames will also be a key indicator.
Industry Classification
NAICS: Manufacturing › Hardware Manufacturing › Hardware 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: $28,296,947
Exercised Options: $28,296,947
Current Obligation: $28,296,947
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX21D9413
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2023-12-15
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