DoD awards $49.7M for 701D engine maintenance, overhaul, and repair to General Electric
Contract Overview
Contract Amount: $49,742,314 ($49.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-05-04
End Date: 2026-08-15
Contract Duration: 1,199 days
Daily Burn Rate: $41.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE, OVERHAUL & REPAIR OF THE 701D ENGINE
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $49.7 million to GENERAL ELECTRIC COMPANY for work described as: MAINTENANCE, OVERHAUL & REPAIR OF THE 701D ENGINE Key points: 1. Contract awarded to incumbent General Electric, suggesting potential for continued reliance on established providers. 2. The contract utilizes a Firm Fixed Price (FFP) structure, which shifts cost risk to the contractor. 3. Delivery Order award indicates this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The duration of nearly 4 years suggests a significant, ongoing need for engine sustainment. 5. The North American Industry Classification System (NAICS) code 336412 points to a specialized manufacturing sector.
Value Assessment
Rating: good
The contract value of $49.7 million for engine maintenance and repair appears reasonable given the specialized nature of aircraft engine components. Benchmarking against similar contracts for engine overhaul services would provide a more precise value-for-money assessment. The firm fixed price contract type is generally favorable for the government as it caps costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment that can lead to better pricing and terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider range of offers and encourages innovation among potential bidders.
Public Impact
The Department of the Army benefits from the continued maintenance and operational readiness of its aircraft engines. This contract ensures the availability of critical repair and overhaul services for the 701D engine, vital for military aviation. The primary geographic impact is likely within the United States, where the Army's aviation assets are based and maintained. The contract supports skilled labor within the aerospace manufacturing and maintenance sector, particularly at General Electric.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-sourcing in future delivery orders if competition is not re-evaluated.
- Reliance on a single contractor for critical engine parts could pose supply chain risks.
- Lack of specific bidder numbers makes it difficult to fully assess the competitive landscape.
Positive Signals
- Awarded under full and open competition, maximizing initial opportunity for multiple vendors.
- Firm Fixed Price contract structure provides cost certainty for the government.
- Long-term contract duration suggests a stable and predictable need, allowing for efficient planning.
Sector Analysis
This contract falls within the aerospace manufacturing and maintenance sector, specifically focusing on aircraft engines. The market for military aircraft engine MRO (Maintenance, Repair, and Overhaul) is highly specialized, often dominated by original equipment manufacturers (OEMs) like General Electric due to proprietary knowledge and tooling. Comparable spending benchmarks would involve analyzing other large MRO contracts for similar military engine types across different branches of the DoD.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit small business set-aside mentioned. Subcontracting opportunities for small businesses may exist but are not detailed in this award notice. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability is ensured through the firm fixed price terms and performance metrics outlined in the base contract and this delivery order. Transparency is provided through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Engine Maintenance
- Military Aircraft Parts
- Defense Logistics
- Aerospace Manufacturing
- General Electric Aviation Services
Risk Flags
- Potential for vendor lock-in due to OEM status.
- Limited insight into specific competition levels (number of bidders).
- Reliance on incumbent contractor for critical component sustainment.
Tags
defense, department-of-the-army, aircraft-engine-manufacturing, maintenance-overhaul-repair, firm-fixed-price, full-and-open-competition, delivery-order, general-electric, 701d-engine, massachusetts, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.7 million to GENERAL ELECTRIC COMPANY. MAINTENANCE, OVERHAUL & REPAIR OF THE 701D ENGINE
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 $49.7 million.
What is the period of performance?
Start: 2023-05-04. End: 2026-08-15.
What is the historical spending pattern for the 701D engine maintenance and repair by the Department of Defense?
Analyzing historical spending for the 701D engine requires accessing detailed contract data over several fiscal years. Typically, such engines require ongoing maintenance due to high operational tempo and wear. Spending patterns would likely show consistent annual investments, potentially fluctuating based on fleet readiness requirements, major overhaul cycles, and the number of engines in active service. The total spending would also depend on whether contracts were awarded through full and open competition, sole-source, or other procurement methods, influencing price points. Examining past contract awards for this specific engine type, including the number of bidders and contract values, would reveal trends in cost and competition over time.
How does the awarded price compare to similar engine maintenance contracts within the DoD?
A direct comparison of the $49.7 million award for 701D engine maintenance requires identifying contracts for similar engine classes (e.g., other turboshaft engines of comparable power and complexity) awarded to different manufacturers or even to General Electric for different platforms. Factors such as the scope of work (e.g., routine maintenance vs. complete overhaul), the number of engines covered, contract duration, and the specific competition level significantly influence pricing. Without access to a comprehensive database of comparable MRO contracts, it's challenging to definitively benchmark this award. However, the firm fixed price nature suggests a degree of cost certainty for the government, which is a positive indicator if the price is competitive within its specific niche.
What is General Electric's track record with the 701D engine and similar military contracts?
General Electric has a long-standing and extensive track record with the 701D engine, which powers the UH-60 Black Hawk and other aircraft. As the original equipment manufacturer (OEM), GE possesses the proprietary knowledge, tooling, and expertise for its maintenance, overhaul, and repair. Their history with this engine likely includes numerous previous contracts with the Department of Defense, demonstrating a deep understanding of its lifecycle needs. GE's broader portfolio includes a wide range of military and commercial aircraft engines, and they are a major player in the defense aerospace sector, typically performing well on large, complex sustainment contracts. Their incumbency on this engine type suggests a history of successful performance.
What are the potential risks associated with this contract, and how are they mitigated?
Potential risks include cost overruns if the scope of work expands beyond initial estimates (though mitigated by FFP), reliance on a single supplier (GE) which could lead to supply chain vulnerabilities or reduced future competition, and performance issues if maintenance quality is subpar. Mitigation strategies include the firm fixed price structure limiting cost escalation, the initial full and open competition aiming for competitive pricing, and the contract's duration allowing for performance monitoring. The government can also leverage its position as a major customer to ensure quality and address issues promptly. Future contract actions would ideally continue to foster competition where feasible.
How does this contract contribute to the overall readiness and operational capability of the Army's aviation fleet?
This contract is crucial for maintaining the operational readiness and capability of Army aviation assets that rely on the 701D engine, such as the UH-60 Black Hawk helicopter. By ensuring that these engines are properly maintained, overhauled, and repaired, the contract directly supports the availability of aircraft for missions. A well-maintained engine fleet reduces the likelihood of in-flight failures and unscheduled downtime, thereby increasing the number of aircraft available for training, deployment, and combat operations. This sustainment effort is a fundamental component of overall fleet readiness and contributes significantly to the Army's ability to project power and execute its missions effectively.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,742,314
Exercised Options: $49,742,314
Current Obligation: $49,742,314
Actual Outlays: $1,757,056
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ22D0051
IDV Type: IDC
Timeline
Start Date: 2023-05-04
Current End Date: 2026-08-15
Potential End Date: 2026-08-15 12:08:00
Last Modified: 2025-02-24
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