DoD awards $20.9M for T701D engines, a sole-source procurement for Army aviation support
Contract Overview
Contract Amount: $20,883,140 ($20.9M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-06-12
End Date: 2027-03-31
Contract Duration: 1,022 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T701D ENGINES (20) COMPLETE WITH EDECU, CHMU AND DAS IN SUPPORT OF UHPO
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to GENERAL ELECTRIC COMPANY for work described as: T701D ENGINES (20) COMPLETE WITH EDECU, CHMU AND DAS IN SUPPORT OF UHPO Key points: 1. This contract represents a significant investment in critical aviation components for the Department of the Army. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and limited market engagement. 3. A long-term contract duration suggests a sustained need for these specific engine components. 4. The procurement is concentrated in Alabama, indicating potential regional economic impact. 5. The absence of competition raises questions about the government's ability to secure the best possible value. 6. Performance will be monitored through delivery orders against a firm-fixed-price contract.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without competitive bids. The raw dollar amount of $20.9 million for 20 engines, including associated control units, appears substantial. However, without comparable sole-source awards or open market data for the T701D engine with its specific configurations (EDECU, CHMU, DAS), a definitive value-for-money assessment is difficult. The firm-fixed-price structure offers some cost certainty, but the lack of competition limits the government's leverage to drive down prices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was solicited. The justification for this approach is not provided in the data, but it typically stems from unique capabilities, proprietary technology, or a lack of viable alternatives. The absence of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed procurement.
Taxpayer Impact: Taxpayers may be paying a premium for these engines due to the lack of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
The primary beneficiaries are the U.S. Army aviation units requiring T701D engines for their helicopters. This contract ensures the continued operational readiness and support for critical Army aircraft. The geographic impact is concentrated in Alabama, where the engines will likely be manufactured or supported. The procurement supports jobs within the aerospace manufacturing sector, specifically related to engine production and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency regarding the justification for sole-source procurement.
- Long contract duration could mask inefficiencies if not closely monitored.
- Dependence on a single supplier for critical engine components.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Procurement supports critical military aviation readiness.
- General Electric is an established manufacturer with a track record in aviation engines.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector (NAICS 336412). This industry is characterized by high barriers to entry, significant R&D investment, and often involves specialized, high-value components. The market for military aircraft engines is typically dominated by a few large, established players due to the stringent performance, reliability, and safety requirements. Spending in this sector is heavily influenced by defense budgets and modernization programs.
Small Business Impact
This contract does not appear to involve a small business set-aside, as the awardee is General Electric Company, a large corporation. There is no information provided regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of small business participation through competitive subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified engines at the agreed-upon price. Transparency regarding the sole-source justification and performance metrics would be crucial for robust oversight. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Aviation Modernization Programs
- Helicopter Engine Support Contracts
- Aerospace Manufacturing
- Defense Logistics Agency (DLA) Support
Risk Flags
- Sole-source procurement
- Potential for price escalation
- Lack of competitive benchmarking
- Dependence on single supplier
Tags
defense, department-of-the-army, aircraft-engine-manufacturing, sole-source, firm-fixed-price, engines, aviation, alabama, large-contract, dod, 336412
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to GENERAL ELECTRIC COMPANY. T701D ENGINES (20) COMPLETE WITH EDECU, CHMU AND DAS IN SUPPORT OF UHPO
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 $20.9 million.
What is the period of performance?
Start: 2024-06-12. End: 2027-03-31.
What is the historical spending pattern for T701D engines by the Department of Defense?
Analyzing historical spending on T701D engines requires access to comprehensive contract databases. Without specific historical data for this engine model, it's difficult to provide precise figures. However, the T701 engine family has been a workhorse for the U.S. Army for decades, powering various Black Hawk and Apache variants. Consequently, cumulative spending on these engines and their components over the years would likely be in the hundreds of millions, if not billions, of dollars. This current $20.9 million award represents a segment of that ongoing lifecycle support and potential modernization or replacement efforts. Understanding past sole-source awards for this engine, the number of units procured, and the average price per unit over time would provide crucial context for evaluating the current contract's value and necessity.
What is General Electric Company's track record with T701D engines and similar military contracts?
General Electric Company (GE) has a long and established track record as the original equipment manufacturer (OEM) for the T701D engine and its predecessors. They are a primary supplier for the U.S. Army's UH-60 Black Hawk and AH-64 Apache helicopters, which utilize variants of the T701 engine. GE has consistently been awarded contracts for the production, overhaul, and sustainment of these engines, often on a sole-source or limited-competition basis due to their proprietary technology and established support infrastructure. Their performance history generally includes meeting stringent military specifications for reliability and performance. However, like many large defense contractors, GE has faced scrutiny in the past regarding pricing and contract modifications. A detailed review of their performance on previous T701-related contracts, including any past performance issues or disputes, would be necessary for a complete assessment.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
The key performance indicators (KPIs) for this contract, while not explicitly detailed in the provided data, would typically revolve around the timely delivery of the 20 T701D engines with all specified components (EDECU, CHMU, DAS) and adherence to the firm-fixed-price. Specific KPIs would likely include: 1. On-Time Delivery: Meeting the scheduled delivery dates for each engine. 2. Quality and Conformance: Ensuring each engine meets all technical specifications, performance standards, and is free from defects. 3. Completeness of Order: Delivering all 20 engines along with all required accessories and documentation. 4. Warranty Compliance: Adhering to any specified warranty provisions. Measurement would occur through acceptance testing, inspection reports, delivery records, and potentially post-delivery performance monitoring by the Army. Failure to meet these KPIs could result in contract remedies, such as penalties or rejection of goods.
Are there any alternative engine options or potential future competitors for the T701D engine?
The T701D engine is a specific variant within the T701 engine family, which has been a mainstay for the U.S. Army's medium lift and attack helicopters for decades. Given its established role and the significant investment in airframes designed around this engine, direct, off-the-shelf alternatives that could be seamlessly integrated without extensive redesign and recertification are unlikely in the short to medium term. General Electric is the OEM and holds the intellectual property for this engine line. While other engine manufacturers (e.g., Pratt & Whitney, Rolls-Royce) produce powerful turbine engines, they typically serve different platforms or require substantial airframe modifications. Future competition might arise from upgrades or next-generation engine programs initiated by the Army, potentially involving different manufacturers, but for the current T701D requirement, GE remains the primary, if not sole, viable source.
What is the risk associated with relying on a sole-source provider for critical aviation components like the T701D engines?
Relying on a sole-source provider like General Electric for T701D engines presents several risks. Firstly, there's the risk of elevated costs. Without competition, the government has limited leverage to negotiate prices, potentially leading to higher expenditures than if multiple vendors were bidding. Secondly, there's a risk of supply chain disruption. Dependence on a single manufacturer makes the program vulnerable to that company's production issues, labor strikes, financial instability, or strategic decisions that might deprioritize this specific engine line. Thirdly, there's a risk of technological stagnation. A sole-source arrangement can reduce the incentive for the supplier to innovate aggressively, as there is no competitive pressure to develop improved or next-generation technologies. Finally, there's a potential risk related to long-term sustainment and parts availability if the manufacturer decides to phase out support or increase prices significantly over the engine's lifecycle.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,883,140
Exercised Options: $20,883,140
Current Obligation: $20,883,140
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ24D0053
IDV Type: IDC
Timeline
Start Date: 2024-06-12
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-08-22
More Contracts from General Electric Company
- 200607!387702!1700!n00019!naval AIR Systems Command !N0001906C0088 !A!N! !N! ! !20060424!20090131!001408509!001408509!001367960!n!general Electric Company !1000 Western AVE !lynn !ma!01905!37490!009!25!lynn !essex !mass !+000018238000!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !000 !NOT Discernable !336412!E! !3! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! !Y!1719!N00019!0001! ! — $2.4B (Department of Defense)
- Adaptive Engine Transition Program (aetp) — $2.1B (Department of Defense)
- 200608!001069!2100!w58rgz!usa Aviation and Missile Command!w58rgz06c0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!n!general Electric Company !1 Neumann WAY !cincinnati !oh!45215!15000!061!39!cincinnati !hamilton !ohio !+000177879422!n!n!000000000000!r706!logistics Support Services !a1b!aircraft Engines and Spares !000 !NOT Discernable !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1g!z!n!z! ! !Y!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! ! — $1.6B (Department of Defense)
- 200210!004379!1700!AA427 !naval AIR Systems Command !N0001901C0147 !A!N! !N!P00001 !20020508!20031130!001408509!001408509!001367960!n!general Electric Company Inc !1000 Western AVE !lynn !ma!01910!37490!009!25!lynn !essex !mass !+000060619860!n!n!000000000000!2840!gas Turbines and JET Engines, Acft & Comps !a1b!aircraft Engines and Spares !2bjn!f414-Ge-400 !336412!E! !1! ! !C! ! !99990909!B! ! !A! !d!n!j!1!001!n!1a!a!w!f! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! ! ! ! !0001! — $1.5B (Department of Defense)
- F414-GE-400 Engines — $1.2B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)