DoD Awards $36M to General Electric for T-700 Engine Production, Facing Limited Competition
Contract Overview
Contract Amount: $36,000,318 ($36.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-11-22
End Date: 2028-02-28
Contract Duration: 1,193 days
Daily Burn Rate: $30.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-700 ENGINES AND SPARES PRODUCTION EFFORTS.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $36.0 million to GENERAL ELECTRIC COMPANY for work described as: T-700 ENGINES AND SPARES PRODUCTION EFFORTS. Key points: 1. Significant contract value for critical aircraft engine components. 2. Sole reliance on General Electric raises competition concerns. 3. Long-term contract duration (1193 days) warrants close monitoring. 4. Focus on production efforts suggests ongoing operational needs.
Value Assessment
Rating: fair
The contract value of $36,001,318 for T-700 engines and spares appears reasonable given the specialized nature of aircraft engine manufacturing. However, without specific per-unit cost data or benchmarks for similar engine components, a definitive assessment of value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to General Electric Company, indicating a lack of competitive bidding. This approach may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.
Public Impact
Ensures continued availability of critical T-700 engines and spare parts for military aircraft. Supports the operational readiness of Army aviation units. Potential for increased costs due to lack of competition impacts overall defense budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- Lack of detailed cost breakdowns.
Positive Signals
- Ensures supply of critical components.
- Supports established manufacturer with proven capabilities.
Sector Analysis
The defense sector, particularly aircraft engine manufacturing, is characterized by high barriers to entry and specialized expertise. General Electric is a dominant player in this market, making sole-source awards for specific engine types not uncommon, though competition is generally preferred.
Small Business Impact
This contract was awarded to a large business (General Electric Company) and does not appear to include specific provisions or set-asides for small businesses. The nature of specialized engine production often favors established prime contractors.
Oversight & Accountability
The Department of the Army is the contracting agency. Oversight will be crucial to ensure performance, quality, and adherence to the firm fixed price terms, especially given the sole-source nature of the award and the extended delivery period.
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 cost overruns due to lack of competitive pressure.
- Long contract duration may mask inefficiencies.
- Dependence on a single supplier creates supply chain risk.
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 $36.0 million to GENERAL ELECTRIC COMPANY. T-700 ENGINES AND SPARES PRODUCTION EFFORTS.
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 $36.0 million.
What is the period of performance?
Start: 2024-11-22. End: 2028-02-28.
What is the historical cost performance of General Electric for T-700 engines and spares under previous contracts?
Analyzing historical cost data for T-700 engines and spares from General Electric is essential to understand cost trends and identify potential inefficiencies. Previous contract performance can reveal if costs have been stable, increasing, or decreasing, providing a baseline for evaluating the current $36 million award and informing future pricing negotiations or competitive strategies.
Are there any viable alternative suppliers or potential competitors for T-700 engine components that were not considered?
Investigating alternative suppliers or potential competitors for T-700 engine components is critical to assess the justification for a sole-source award. Even in specialized markets, exploring options like licensed production, aftermarket suppliers, or potential new entrants can reveal opportunities for competition, potentially leading to better pricing and innovation for the Department of Defense.
How does the per-unit cost of these T-700 engines and spares compare to similar engine components for other military aircraft programs?
Benchmarking the per-unit cost of T-700 engines and spares against similar components for other military aircraft programs is vital for assessing cost-effectiveness. This comparison helps determine if the pricing is competitive within the broader defense aerospace landscape, highlighting potential overpricing or cost efficiencies relative to industry standards and other government procurements.
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: $36,000,318
Exercised Options: $36,000,318
Current Obligation: $36,000,318
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ24D0053
IDV Type: IDC
Timeline
Start Date: 2024-11-22
Current End Date: 2028-02-28
Potential End Date: 2028-02-28 12:02:00
Last Modified: 2025-08-12
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