DoD Awards $39.3M for 50 UH-60M Helicopter Engine Kits to General Electric
Contract Overview
Contract Amount: $39,252,985 ($39.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2021-03-22
End Date: 2023-02-23
Contract Duration: 703 days
Daily Burn Rate: $55.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T700 REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER W58RGZ-21- F-0264 IS TO PROCURE FIFTY (50) EACH 701D UH-60M INSTALL WITH EDECU, CHMU, AND DAS IN SUPPORT OF UHPO PROGRAM, FOR CY 2022 DELIVERIES
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $39.3 million to GENERAL ELECTRIC COMPANY for work described as: T700 REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER W58RGZ-21- F-0264 IS TO PROCURE FIFTY (50) EACH 701D UH-60M INSTALL WITH EDECU, CHMU, AND DAS IN SUPPORT OF UHPO PROGRAM, FOR CY 2022 DELIVERIES Key points: 1. Procurement of 50 engine kits for UH-60M helicopters supports the UHPO program. 2. General Electric Company is the sole awardee for this delivery order. 3. The contract is a Firm Fixed Price type, valued at $39.3 million. 4. This acquisition falls under the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The total award is $39.3 million for 50 units, resulting in a per-unit cost of approximately $785,059. Benchmarking against similar complex aircraft engine components requires detailed specification comparison, but this price appears within a reasonable range for specialized military hardware.
Cost Per Unit: $785,059
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, indicating a sole-source award. Without competition, the government may not have achieved the lowest possible price or explored innovative solutions from other potential vendors.
Taxpayer Impact: The lack of competition raises concerns about potential overpayment, impacting taxpayer value for this critical helicopter component.
Public Impact
Ensures continued operational readiness for UH-60M Black Hawk helicopters. Supports the U.S. Army's aviation modernization efforts. Funds critical manufacturing and supply chain activities within the aerospace sector. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Potential for cost overruns without competitive bidding.
- Long contract duration (703 days) increases risk exposure.
Positive Signals
- Addresses a specific, stated requirement for helicopter upgrades.
- Award to established manufacturer (General Electric) suggests reliability.
- Firm Fixed Price contract provides cost certainty if scope is managed.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is often characterized by high R&D costs, specialized manufacturing, and long product lifecycles, with significant government reliance on a few key suppliers.
Small Business Impact
The awardee, General Electric Company, is a large business. There is no indication that small businesses were involved as subcontractors in this specific delivery order, which is common for highly specialized defense procurements.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of the Army's contracting activity should provide justification for the lack of competition and monitor contract performance closely.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Lack of transparency regarding justification for sole-source.
- High per-unit cost requires validation against market benchmarks.
- Long contract duration increases exposure to market fluctuations or performance issues.
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 $39.3 million to GENERAL ELECTRIC COMPANY. T700 REQUIREMENT: THE PURPOSE OF THIS DELIVERY ORDER W58RGZ-21- F-0264 IS TO PROCURE FIFTY (50) EACH 701D UH-60M INSTALL WITH EDECU, CHMU, AND DAS IN SUPPORT OF UHPO PROGRAM, FOR CY 2022 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 $39.3 million.
What is the period of performance?
Start: 2021-03-22. End: 2023-02-23.
What is the justification for awarding this contract sole-source, and were alternative solutions or vendors considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can meet the requirement. The Department of the Army should have documented this justification, potentially related to specific engine modifications or integration requirements for the UH-60M. Without this documentation, it's difficult to assess if competition was truly impossible or if other avenues were overlooked.
How does the per-unit cost of $785,059 compare to market rates for similar advanced helicopter engine components?
Benchmarking this per-unit cost requires access to detailed specifications and market intelligence for comparable military-grade helicopter engine kits with EDECU, CHMU, and DAS. While $785,059 appears substantial, the complexity and specialized nature of these components for the UH-60M platform could justify the price. A thorough analysis would involve comparing pricing from other government contracts or industry sources for similar systems.
What is the long-term strategy for procuring these engine kits, and will future requirements be competed?
The long-term strategy is crucial for ensuring sustained availability and competitive pricing. If these engine kits are part of an ongoing modernization or sustainment program, the Department of the Army should outline plans for future procurements. Ideally, future requirements should be competed to leverage market dynamics and achieve better value for taxpayer dollars, unless a compelling reason for continued sole-source acquisition persists.
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: $39,252,985
Exercised Options: $39,252,985
Current Obligation: $39,252,985
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ15D0048
IDV Type: IDC
Timeline
Start Date: 2021-03-22
Current End Date: 2023-02-23
Potential End Date: 2023-02-23 12:02:00
Last Modified: 2023-02-28
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