DoD Awards $4.16M Engineering Services Task Order to General Electric Company
Contract Overview
Contract Amount: $4,162,304 ($4.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2022-08-31
End Date: 2026-12-31
Contract Duration: 1,583 days
Daily Burn Rate: $2.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER FOR ENGINEERING SERVICES.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $4.2 million to GENERAL ELECTRIC COMPANY for work described as: TASK ORDER FOR ENGINEERING SERVICES. Key points: 1. The contract is for engineering services, a critical sector for defense operations. 2. General Electric Company is a large, established contractor, suggesting potential for reliable execution. 3. The 'NOT COMPETED' status raises immediate concerns about potential overpricing and lack of market validation. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, carries inherent risk of cost escalation. Without a competitive benchmark, assessing the fairness of the fixed fee and overall pricing is difficult. The lack of competition makes it hard to determine if this price represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers. The rationale for not competing the award needs further scrutiny.
Taxpayer Impact: The lack of competition suggests that taxpayers may not be receiving the best possible price for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these services, making the cost and quality crucial for national security. The long duration (over 3 years) amplifies the potential financial impact of any inefficiencies or overpricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fixed Fee Structure
- Long Contract Duration
Positive Signals
- Established Contractor
- Critical Service Area
Sector Analysis
Engineering services are vital for the Department of Defense's infrastructure and operational readiness. Spending in this sector can vary widely, but competitive procurement is key to ensuring cost-effectiveness. This award's non-competitive nature is a significant deviation from best practices.
Small Business Impact
The awardee, General Electric Company, is a large business. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract's life. Robust performance monitoring is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpricing due to lack of competition.
- Risk of cost overruns inherent in CPFF contracts.
- Limited transparency in price determination.
- Potential missed opportunity for small business participation.
Tags
engineering-services, department-of-defense, ma, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.2 million to GENERAL ELECTRIC COMPANY. TASK ORDER FOR ENGINEERING SERVICES.
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 $4.2 million.
What is the period of performance?
Start: 2022-08-31. End: 2026-12-31.
What was the justification for not competing this engineering services task order, and how was the fixed fee determined to be fair and reasonable?
The justification for not competing the award is critical. Agencies typically sole-source when only one responsible source can provide the required services. The process for determining the fixed fee's fairness and reasonableness should involve detailed cost analysis and market research, even in a sole-source scenario, to ensure taxpayer value.
What are the specific performance metrics and oversight mechanisms in place to mitigate the risks associated with a Cost Plus Fixed Fee contract awarded without competition?
Effective oversight requires clearly defined performance metrics tied to the engineering services. Mechanisms should include regular progress reviews, independent cost audits, and strict change order controls. The contracting officer must actively manage the contract to prevent scope creep and ensure the fixed fee remains appropriate for the work performed.
How does this contract's pricing compare to similar engineering services procured competitively by the Department of Defense or other federal agencies?
Without competitive data, a direct comparison is challenging. However, analysis of historical competitive contracts for similar engineering services (e.g., by NAICS code 541330) could provide a benchmark. Deviations from established price ranges for comparable services would indicate potential overpricing and warrant further investigation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $4,162,304
Exercised Options: $4,162,304
Current Obligation: $4,162,304
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $36,036
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ22D0045
IDV Type: IDC
Timeline
Start Date: 2022-08-31
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2026-01-07
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