DoD Awards $27.7M for T700-Series Engines to General Electric, No Competition
Contract Overview
Contract Amount: $27,677,002 ($27.7M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2023-07-24
End Date: 2026-11-30
Contract Duration: 1,225 days
Daily Burn Rate: $22.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT FOR THE PROCUREMENT OF T700-SERIES ENGINES.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $27.7 million to GENERAL ELECTRIC COMPANY for work described as: CONTRACT FOR THE PROCUREMENT OF T700-SERIES ENGINES. Key points: 1. Significant award for critical aircraft engine components. 2. Sole reliance on General Electric raises competition concerns. 3. Long-term contract duration may impact future pricing. 4. Sector is essential for military aviation readiness.
Value Assessment
Rating: fair
The award amount of $27.7M for T700-series engines appears substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market alternatives or previous contracts for similar engine models.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had submitted bids.
Taxpayer Impact: The absence of competition for essential aircraft engines could lead to higher taxpayer costs over the life of the contract.
Public Impact
Ensures continued availability of T700-series engines for Army aviation. Supports a key defense industrial base supplier. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Essential equipment procurement
- Supports established supplier
Sector Analysis
The procurement of T700-series engines falls within the aerospace and defense manufacturing sector. Spending in this area is critical for maintaining military readiness and technological superiority, but often involves high unit costs and limited supplier options.
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 sole-source procurements of specialized defense equipment.
Oversight & Accountability
The contract was awarded via a delivery order under an existing contract mechanism. Oversight will be crucial to ensure performance and manage costs, 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 limits competition.
- Potential for inflated pricing without competitive bids.
- Long contract duration may not reflect market changes.
- Lack of small business participation.
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 $27.7 million to GENERAL ELECTRIC COMPANY. CONTRACT FOR THE PROCUREMENT OF T700-SERIES 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 $27.7 million.
What is the period of performance?
Start: 2023-07-24. End: 2026-11-30.
What is the justification for the sole-source award of T700-series engines, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique technical capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government often relies on cost realism analyses, historical pricing data, and negotiation with the sole provider. However, without competitive benchmarking, verifying true fairness remains challenging.
What are the long-term risks associated with relying on a single supplier for critical aircraft engine components?
Long-term risks include potential price escalation due to lack of competition, supply chain vulnerabilities if the sole supplier faces disruptions, and reduced innovation as there's less incentive for the supplier to invest in cost-saving technologies. It also limits the government's flexibility to switch suppliers if performance or pricing becomes unsatisfactory.
How does this procurement impact the overall readiness and operational capability of the Army's aviation assets?
This procurement is vital for maintaining the operational readiness of Army aviation assets that rely on T700-series engines. Ensuring a steady supply of these engines and their parts prevents grounding of aircraft due to maintenance needs, directly supporting flight hours and mission accomplishment. The long-term availability secured by this contract is crucial for sustained operational capability.
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: $27,677,002
Exercised Options: $27,677,002
Current Obligation: $27,677,002
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: 2023-07-24
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2025-08-19
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