DoD's $7M contract for aircraft parts awarded to General Electric Company, with a 955-day duration
Contract Overview
Contract Amount: $6,984,980 ($7.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2028-07-31
Contract Duration: 955 days
Daily Burn Rate: $7.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SEAL,METALLIC,AIRCR (F118)
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $7.0 million to GENERAL ELECTRIC COMPANY for work described as: SEAL,METALLIC,AIRCR (F118) Key points: 1. Value for money assessed against market benchmarks for similar aircraft components. 2. Competition dynamics indicate a sole-source award, potentially impacting price. 3. Risk indicators include contract duration and sole-source nature. 4. Performance context relies on General Electric's established track record. 5. Sector positioning within aerospace manufacturing and defense logistics. 6. Limited competition may lead to higher costs for taxpayers.
Value Assessment
Rating: fair
The contract value of $6,984,980.33 for aircraft parts requires benchmarking against similar components and market rates. Without specific details on the parts and their quantities, a precise value-for-money assessment is challenging. However, given the sole-source nature, there is a risk of paying a premium compared to a competitively bid contract. The duration of nearly three years suggests a significant need, but the pricing strategy (firm fixed price) offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates careful negotiation and oversight to ensure fair pricing.
Public Impact
Benefits the Department of Defense by ensuring the availability of critical aircraft parts. Services delivered include the supply of metallic aircraft parts, specifically identified as F118 components. Geographic impact is centered in Ohio, where the contractor is located. Workforce implications are likely within General Electric's manufacturing and supply chain operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long contract duration (955 days) may not reflect current market price fluctuations.
- Lack of detailed part specifications makes independent cost verification difficult.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Award to established contractor General Electric suggests reliability.
- Contract supports critical defense logistics operations.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often characterized by high barriers to entry due to technical expertise, proprietary technology, and stringent quality requirements. General Electric is a major player in this sector, known for its engine and component manufacturing. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar high-value, specialized aircraft parts within the defense industry.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. The award to a large prime contractor like General Electric suggests that small business participation would likely be through lower-tier subcontracts, if at all, and is not a primary focus of this specific award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which awarded the contract. Accountability measures are inherent in the firm fixed price structure, requiring delivery of specified parts. Transparency is facilitated by contract databases, though detailed justifications for sole-source awards may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Engine Parts
- Defense Logistics Agency Contracts
- General Electric Defense Contracts
- Sole Source Defense Procurements
- Firm Fixed Price Defense Contracts
Risk Flags
- Sole-source award
- Long contract duration
- Lack of competition
Tags
defense, department-of-defense, general-electric-company, sole-source, firm-fixed-price, aircraft-parts, metallic-seals, f118-engine, defense-logistics-agency, ohio, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.0 million to GENERAL ELECTRIC COMPANY. SEAL,METALLIC,AIRCR (F118)
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 $7.0 million.
What is the period of performance?
Start: 2025-12-19. End: 2028-07-31.
What is the specific nature and criticality of the 'SEAL,METALLIC,AIRCR (F118)' parts being procured?
The data indicates the parts are 'SEAL,METALLIC,AIRCR (F118)', suggesting metallic seals for F118 aircraft engines. The F118 engine is used in various military aircraft, including the B-2 Spirit stealth bomber and the U-2 reconnaissance aircraft. Therefore, these seals are likely critical components for the operational readiness and performance of these high-value, strategic assets. Their criticality implies a need for high reliability and adherence to strict specifications, which could contribute to the sole-source nature of the award if only General Electric can provide certified replacements.
What is General Electric's historical performance and track record with the Department of Defense for similar components?
General Electric Company has a long and extensive history of supplying components and engines to the Department of Defense. They are a primary contractor for numerous aircraft platforms and have consistently delivered complex systems and parts. Their track record with the DoD is generally strong, characterized by significant contributions to aviation readiness. For specific components like seals, their performance would be evaluated based on quality, delivery timeliness, and adherence to specifications. Given their established position, the DoD likely relies on their expertise and existing manufacturing capabilities for critical parts like these F118 engine seals.
How does the firm fixed price (FFP) structure impact the risk and value proposition for this contract?
A Firm Fixed Price (FFP) contract shifts the majority of the cost risk to the contractor, General Electric. This means the price is set and generally not subject to adjustment based on the contractor's actual costs. For the government, this provides cost certainty and predictability, making budgeting easier. The value proposition is that the DoD knows the exact cost upfront. However, for the contractor to accept this risk, they typically build in a contingency, which could lead to a higher initial price compared to cost-reimbursement contracts. The FFP structure incentivizes the contractor to control costs efficiently to maximize profit.
What are the potential implications of a 955-day contract duration on pricing and market responsiveness?
A contract duration of 955 days (approximately 2.6 years) is substantial for the procurement of specific parts. This extended period means the price is locked in for a significant timeframe. If market prices for raw materials or manufacturing capacity were to decrease during this period, the government would not benefit from those reductions. Conversely, if costs were to increase, the government is protected by the FFP. The long duration also suggests a sustained need for these parts, potentially indicating a strategic sourcing decision rather than an immediate, short-term requirement. It may also reflect the lead times and production schedules involved in manufacturing specialized aerospace components.
Are there any alternative suppliers or potential for future competition for these F118 engine seals?
Given this is a sole-source award, it implies that currently, General Electric is the only approved or capable supplier for these specific F118 engine seals. This could be due to proprietary technology, unique manufacturing processes, or specific certifications required by the engine manufacturer and the DoD. However, the government may have options for future procurements. They could explore if other companies could be qualified to produce these seals, potentially through a competitive bidding process in subsequent contract actions. This would involve rigorous testing and certification to ensure interchangeability and performance equivalence, which can be a lengthy and costly process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRTA124R0056
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: $6,984,980
Exercised Options: $6,984,980
Current Obligation: $6,984,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SPE4A124G0014
IDV Type: BOA
Timeline
Start Date: 2025-12-19
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-12-19
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