DoD awards $29.8M for 38 T700 engines for combat helicopters, sourced from General Electric
Contract Overview
Contract Amount: $29,800,398 ($29.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-01-27
End Date: 2023-04-30
Contract Duration: 823 days
Daily Burn Rate: $36.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T700 ENGINE REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 38 701D INSTALL ENGINES IN SUPPORT OF COMBAT HELICOPTER PROGRAM, FOR CY YEARS 2022 AND 2023 DELIVERIES.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $29.8 million to GENERAL ELECTRIC COMPANY for work described as: T700 ENGINE REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 38 701D INSTALL ENGINES IN SUPPORT OF COMBAT HELICOPTER PROGRAM, FOR CY YEARS 2022 AND 2023 DELIVERIES. Key points: 1. Procurement of 38 T701D engines for combat helicopters. 2. Contract awarded to General Electric Company. 3. Delivery spans CY 2022 and 2023. 4. Firm Fixed Price contract type. 5. Significant investment in aviation readiness.
Value Assessment
Rating: good
The $29.8 million award for 38 engines suggests a per-unit cost of approximately $784,220. This price needs to be benchmarked against similar military engine procurements to assess value.
Cost Per Unit: $784,220
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric. Lack of competition may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these critical helicopter engines.
Public Impact
Ensures continued operational readiness for combat helicopter fleets. Supports the critical mission capabilities of the U.S. Army. Maintains a key component supply chain for national defense. Impacts the aerospace manufacturing sector and its workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Ensures critical equipment availability
- Supports established defense contractor
Sector Analysis
This procurement falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar engine procurements are essential for value assessment.
Small Business Impact
This contract was awarded directly to General Electric Company, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The award is a Delivery Order under an existing contract, suggesting some level of prior oversight. However, the lack of competition warrants scrutiny to ensure fair pricing and responsible stewardship of funds.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on justification for sole-sourcing
- Need for robust performance monitoring
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 $29.8 million to GENERAL ELECTRIC COMPANY. T700 ENGINE REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 38 701D INSTALL ENGINES IN SUPPORT OF COMBAT HELICOPTER PROGRAM, FOR CY YEARS 2022 AND 2023 DELIVERIES.
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 $29.8 million.
What is the period of performance?
Start: 2021-01-27. End: 2023-04-30.
What is the historical pricing trend for T700 engines and how does this award compare?
Analyzing historical pricing data for T700 engines is crucial. If this $784,220 per-unit cost is significantly higher than previous awards or market benchmarks for comparable engines, it raises concerns about value for money. Without historical context, it's difficult to definitively assess if the price reflects fair market value or if the sole-source nature has inflated it.
What are the specific justifications for awarding this contract sole-source?
Understanding the justification for a sole-source award is paramount. Reasons could include unique technical requirements, proprietary technology, or lack of viable alternatives. However, agencies must demonstrate that full and open competition was not feasible or advantageous. A thorough review of the justification is needed to ensure it is robust and not a circumvention of competitive processes.
How will the performance and reliability of these engines be monitored post-delivery?
Effective post-delivery monitoring is key to ensuring the value and reliability of these critical T700 engines. The Department of Defense should have established performance metrics and reporting mechanisms to track engine health, maintenance needs, and operational effectiveness. This oversight helps identify any potential issues early and ensures the long-term return on investment for taxpayer funds.
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,800,398
Exercised Options: $29,800,398
Current Obligation: $29,800,398
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ15D0048
IDV Type: IDC
Timeline
Start Date: 2021-01-27
Current End Date: 2023-04-30
Potential End Date: 2023-04-30 12:04:00
Last Modified: 2021-05-20
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