DoD Awards $20.3M for GE Turboshaft Engines, Production Ongoing Through Oct 2026
Contract Overview
Contract Amount: $20,029,236 ($20.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-02-06
End Date: 2026-10-31
Contract Duration: 632 days
Daily Burn Rate: $31.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TURBOSHAFT 700 ENGINE PRODUCTION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to GENERAL ELECTRIC COMPANY for work described as: TURBOSHAFT 700 ENGINE PRODUCTION Key points: 1. Significant contract value for critical aircraft engine components. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (632 days) indicates sustained demand. 4. Focus on production within the Aircraft Engine Manufacturing sector.
Value Assessment
Rating: questionable
The award amount of $20.3M for turboshaft engines needs comparison against similar sole-source contracts for GE engines to assess value. Without competitive bidding, it's difficult to ascertain if this price reflects market rates or includes a premium.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The lack of competition for this significant award raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Ensures continued availability of critical turboshaft engines for military aircraft. Supports jobs and economic activity within the aerospace manufacturing sector. Potential for higher costs due to sole-source award impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing without competitive pressure.
- Long-term contract duration may mask inefficiencies.
Positive Signals
- Ensures supply of critical defense equipment.
- Supports established manufacturer with proven capabilities.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for sole-source engine production can vary widely, but competitive procurements typically yield better pricing.
Small Business Impact
The data does not indicate any specific provisions or participation for small businesses in this sole-source contract. Further analysis would be needed to determine if small businesses are involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of Defense's contracting officers must rigorously justify the sole-source justification and monitor performance and costs closely.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Limited transparency in cost justification
- Dependency on a single supplier
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to GENERAL ELECTRIC COMPANY. TURBOSHAFT 700 ENGINE PRODUCTION
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 $20.0 million.
What is the period of performance?
Start: 2025-02-06. End: 2026-10-31.
What is the historical pricing trend for this specific GE turboshaft engine under similar sole-source awards?
Analyzing historical pricing data for this GE turboshaft engine, particularly from previous sole-source awards, is essential. This comparison would help determine if the current $20.3 million award is consistent with past pricing or if there's an escalation. Understanding the justification for any price increases, such as material costs or production complexities, is key to assessing value.
What are the specific justifications for awarding this contract on a sole-source basis?
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. For this GE turboshaft engine, the justification likely stems from GE's established role and expertise in producing this specific model, potentially linked to existing platforms or specialized manufacturing processes.
How does the per-unit cost of this engine compare to similar engines produced competitively?
Without competitive bidding data, a direct per-unit cost comparison is challenging. However, by benchmarking against similar turboshaft engines procured competitively by the DoD or other agencies, analysts can estimate a potential price range. Significant deviations from this benchmark for this sole-source award would indicate a potential overpayment and warrant further investigation into cost drivers.
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: $20,029,236
Exercised Options: $20,029,236
Current Obligation: $20,029,236
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ24D0053
IDV Type: IDC
Timeline
Start Date: 2025-02-06
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 12:10:00
Last Modified: 2025-08-13
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