Army awards $31.5M for 40 T700 engines to General Electric, impacting aircraft readiness
Contract Overview
Contract Amount: $31,513,459 ($31.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-03-29
End Date: 2025-10-31
Contract Duration: 947 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY OF 40 ENGINES.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $31.5 million to GENERAL ELECTRIC COMPANY for work described as: CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY OF 40 ENGINES. Key points: 1. Significant investment in critical aircraft engine components. 2. Sole-source award to established prime contractor, General Electric. 3. Potential for cost savings through competitive bidding on future orders. 4. Impacts aviation readiness and maintenance capabilities within the Army.
Value Assessment
Rating: good
The contract value of $31.5M for 40 engines appears reasonable given the specialized nature of military aircraft engines. Benchmarking against similar sole-source procurements for advanced engine components suggests this pricing is within an expected range, though direct comparison is limited without more detailed specifications.
Cost Per Unit: $787,836
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric. While this can expedite delivery for critical needs, it limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayers may bear a premium due to the lack of competition, though the necessity of specific engine models for operational readiness justifies the expenditure.
Public Impact
Ensures continued operation and maintenance of Army aviation assets. Supports the supply chain for critical defense components. Affects the readiness and deployment capabilities of Army units relying on these aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs.
- Sole-source award limits market price discovery.
- Long-term sustainment costs not detailed.
Positive Signals
- Addresses critical need for aircraft engine components.
- Utilizes an established and experienced contractor.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The Aircraft Engine and Engine Parts Manufacturing sector is highly specialized and often dominated by a few key players due to high R&D costs and technical expertise. Defense spending in this area is crucial for maintaining military readiness and technological superiority.
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, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure fair pricing and prevent potential cost overruns. Future solicitations should explore competitive avenues to maximize value for taxpayer dollars.
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.
- Potential for higher costs due to lack of competitive bidding.
- Limited transparency on long-term sustainment costs.
- No clear small business participation identified.
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 $31.5 million to GENERAL ELECTRIC COMPANY. CONTRACT FOR T700 ENGINES. NEW ORDER FOR QUANTITY OF 40 ENGINES.
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 $31.5 million.
What is the period of performance?
Start: 2023-03-29. End: 2025-10-31.
What is the long-term cost projection for maintaining and servicing these T700 engines, and how does it compare to competitive alternatives?
The provided data focuses solely on the acquisition cost of 40 T700 engines. Long-term sustainment and maintenance costs are not detailed. Without this information, it's difficult to assess the total lifecycle cost. Future analysis should include projected maintenance, repair, and overhaul expenses, and explore if alternative engine platforms or service contracts could offer better long-term value.
Given the sole-source nature, what mechanisms are in place to ensure General Electric is providing a fair and reasonable price for these engines?
While the contract is sole-source, the government likely relies on mechanisms such as Cost Price Analysis (CPA) and should have access to historical pricing data for similar procurements. The contracting officer is responsible for negotiating a fair and reasonable price. However, the absence of competition inherently reduces the government's leverage in price negotiations, making robust internal cost analysis critical.
How will this procurement impact the overall readiness and operational availability of the specific Army aircraft platforms that utilize the T700 engine?
This procurement directly addresses the need for 40 T700 engines, which are critical components for various Army aircraft. By securing these engines, the Army is likely bolstering its supply chain and ensuring that aircraft requiring these powerplants can be maintained and kept operational. This directly contributes to improved readiness and sustained operational availability for the affected aviation units.
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: $31,513,459
Exercised Options: $31,513,459
Current Obligation: $31,513,459
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: 2023-03-29
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 12:10:00
Last Modified: 2025-07-08
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