DoD Awards $53.8M for T700 Engine Installs to General Electric, Lacking Competition
Contract Overview
Contract Amount: $53,764,809 ($53.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-04-03
End Date: 2025-12-31
Contract Duration: 1,003 days
Daily Burn Rate: $53.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT FOR T700 ENGINES. TASK ORDER FOR 60 ENGINE INSTALLS.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $53.8 million to GENERAL ELECTRIC COMPANY for work described as: CONTRACT FOR T700 ENGINES. TASK ORDER FOR 60 ENGINE INSTALLS. Key points: 1. Significant award for critical aircraft engine components. 2. Sole reliance on General Electric raises competition concerns. 3. Long-term contract duration presents potential for price escalation. 4. Focus on aircraft engine manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $53.8 million for 60 engine installs appears high given the lack of competitive bidding. Benchmarking against similar sole-source or limited-competition contracts for T700 engine work is crucial to assess fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition on this significant contract may result in taxpayers paying a premium for T700 engine installations.
Public Impact
Ensures continued operational readiness for Army aircraft. Supports a key defense industrial base supplier. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Supports critical defense need
- Award to established supplier
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs and specialized manufacturing capabilities.
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, which is common for highly specialized defense manufacturing contracts.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be critical to ensure timely delivery and adherence to the firm fixed price, especially given the sole-source nature of the award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for price escalation
- Long contract duration (over 2 years)
- Lack of transparency on justification
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 $53.8 million to GENERAL ELECTRIC COMPANY. CONTRACT FOR T700 ENGINES. TASK ORDER FOR 60 ENGINE INSTALLS.
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 $53.8 million.
What is the period of performance?
Start: 2023-04-03. End: 2025-12-31.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, for sole-source awards, agencies typically rely on mechanisms like historical pricing, should-cost models, or should-cost analyses to ensure fair and reasonable pricing. Regular review of performance and cost data throughout the contract lifecycle is essential for effective oversight.
What are the risks associated with a sole-source award for aircraft engine components, particularly over the long term?
Sole-source awards carry inherent risks of inflated pricing due to the lack of competitive pressure. Over the long term, this can lead to significant cost overruns for the government. Additionally, it can stifle innovation from other potential suppliers and create dependency on a single manufacturer, potentially impacting supply chain resilience.
How does this contract contribute to the overall operational effectiveness and readiness of the Army's aviation assets?
This contract directly supports the operational readiness of Army aviation assets by ensuring the availability of T700 engines, which are critical for a wide range of helicopters. The timely installation of these engines is essential for maintaining the fleet's operational capability and fulfilling mission requirements.
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: $53,764,809
Exercised Options: $53,764,809
Current Obligation: $53,764,809
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: 2023-04-03
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-08-07
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