DoD's Army awards $81.7M for Engineering Services to General Electric, a non-competed contract
Contract Overview
Contract Amount: $81,727,164 ($81.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-01-01
End Date: 2021-03-31
Contract Duration: 455 days
Daily Burn Rate: $179.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TECHNICAL ENGINEERING LOGISTICAL SERVICES&SUPPORT
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $81.7 million to GENERAL ELECTRIC COMPANY for work described as: TECHNICAL ENGINEERING LOGISTICAL SERVICES&SUPPORT Key points: 1. Significant award to a single large contractor, General Electric. 2. Lack of competition raises questions about price discovery and value. 3. Contract duration of 455 days suggests a substantial, ongoing need. 4. The engineering services sector is critical for defense readiness.
Value Assessment
Rating: questionable
The $81.7M award for engineering services lacks a clear benchmark due to the absence of competitive bidding. Without comparison to similar contracts or market rates, assessing the value for money is difficult.
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 approach bypasses the potential for price reduction and innovation that competition typically drives.
Taxpayer Impact: The absence of competition may lead to taxpayers paying a premium for these engineering services, as there was no market pressure to achieve the lowest possible price.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Army received specialized engineering services, potentially critical for its operations. General Electric secured a substantial contract without facing market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Award to established contractor
- Addresses specific Army needs
Sector Analysis
This award falls within the Engineering Services sector, which is vital for government infrastructure and defense projects. Spending in this area can vary significantly based on project scope and agency needs.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the award went to a large corporation, General Electric. This suggests limited direct opportunity for small businesses on this particular contract.
Oversight & Accountability
The non-competed nature of this award warrants scrutiny. Further investigation into the justification for sole-sourcing and the oversight mechanisms in place would be beneficial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for inflated costs
- Limited transparency in procurement
Tags
engineering-services, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.7 million to GENERAL ELECTRIC COMPANY. TECHNICAL ENGINEERING LOGISTICAL SERVICES&SUPPORT
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $81.7 million.
What is the period of performance?
Start: 2020-01-01. End: 2021-03-31.
What was the justification for not competing this significant engineering services contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without further information, it's impossible to determine the specific rationale, but it raises concerns about potential missed opportunities for better pricing and innovation through competition.
What are the potential risks associated with awarding such a large contract without competition?
The primary risk is the potential for overpayment, as the government may not have secured the best possible price without competitive pressure. Other risks include reduced innovation, a lack of transparency in the procurement process, and the potential for contractor complacency. This can ultimately impact the efficient use of taxpayer funds and the overall value received by the agency.
How can the effectiveness of these engineering services be assessed without competitive benchmarks?
Assessing effectiveness without competitive benchmarks is challenging. The Army would need to rely on internal performance metrics, contractor deliverables, and user feedback to gauge success. However, the absence of comparative data makes it difficult to determine if the services provided were truly optimal or if alternative solutions could have been more effective or cost-efficient.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $81,727,164
Exercised Options: $81,727,164
Current Obligation: $81,727,164
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ18D0023
IDV Type: IDC
Timeline
Start Date: 2020-01-01
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2025-04-24
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