DoD Awards $20.6M for 26 T700 Engines and Warranty for Australian UH-60M Helicopters
Contract Overview
Contract Amount: $20,574,131 ($20.6M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-03-02
End Date: 2025-11-30
Contract Duration: 1,004 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY 26 WITH WARRANTY 701 UH-60M INSTALLS FOR AUSTRALIA.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $20.6 million to GENERAL ELECTRIC COMPANY for work described as: CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY 26 WITH WARRANTY 701 UH-60M INSTALLS FOR AUSTRALIA. Key points: 1. This contract is for 26 T700 engines and associated warranties for the UH-60M Black Hawk helicopter, a critical component for military aviation. 2. The sole provider of these specific engines is General Electric Company, indicating a specialized market. 3. The contract is marked as 'NOT COMPETED', raising questions about the procurement process and potential for better pricing. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a key area within defense industrial base.
Value Assessment
Rating: questionable
The award price of $20.57 million for 26 engines equates to approximately $791,312 per engine. Without specific benchmark data for this exact configuration and warranty, it's difficult to definitively assess value. However, given the lack of competition, there's a risk of overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This limits price discovery and potentially leads to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential aircraft engines.
Public Impact
Ensures operational readiness for Australian UH-60M helicopters, supporting allied military capabilities. Supports the defense industrial base by providing work for General Electric Company. Highlights the reliance on specific manufacturers for critical defense components. Potential for increased costs due to non-competitive award impacts overall defense spending efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Supports allied military operations
- Procurement of critical defense hardware
Sector Analysis
The defense sector relies heavily on specialized engine manufacturers like General Electric. Spending on aircraft engines is a significant portion of the defense budget, and competitive bidding is crucial for cost efficiency.
Small Business Impact
This contract was awarded to General Electric Company, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source procurement is valid and that all avenues for competition were explored.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Limited transparency in pricing
- Dependency on a single supplier
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 $20.6 million to GENERAL ELECTRIC COMPANY. CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY 26 WITH WARRANTY 701 UH-60M INSTALLS FOR AUSTRALIA.
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 $20.6 million.
What is the period of performance?
Start: 2023-03-02. End: 2025-11-30.
What is the justification for not competing this contract, and were alternative procurement strategies considered?
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. Agencies must document the rationale thoroughly. Alternative strategies, such as market research to identify potential competitors or phased competitive approaches, should ideally be considered before resorting to a sole-source award to ensure the best value for the government.
How does the per-unit cost of these T700 engines compare to previous sole-source or competitively awarded contracts for similar configurations?
The provided data does not include historical pricing for comparison. A thorough analysis would require benchmarking against previous awards for the T700 engine, especially those with similar warranty and installation packages. Without this comparative data, it is difficult to ascertain if the $791,312 per-unit cost represents fair and reasonable pricing, particularly in a sole-source context.
What is the long-term strategic impact of relying on a single source for critical helicopter engine components?
Long-term reliance on a single source for critical components like T700 engines can create vulnerabilities. It may limit technological advancement due to lack of competitive pressure, increase price escalation over time, and pose supply chain risks if the sole provider faces production issues or geopolitical challenges. Diversifying suppliers or fostering competition where feasible are strategies to mitigate these risks.
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: $20,574,131
Exercised Options: $20,574,131
Current Obligation: $20,574,131
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: 2023-03-02
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 12:11:00
Last Modified: 2025-07-08
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