DoD awards $92.8M for T700 turbine engine production to General Electric Company
Contract Overview
Contract Amount: $92,824,495 ($92.8M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-04-30
End Date: 2026-07-31
Contract Duration: 457 days
Daily Burn Rate: $203.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T700 TURBINE ENGINE PRODUCTION
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $92.8 million to GENERAL ELECTRIC COMPANY for work described as: T700 TURBINE ENGINE PRODUCTION Key points: 1. Value-for-money assessment is pending further benchmarking against comparable engine procurements. 2. The contract was awarded on a sole-source basis, limiting competitive dynamics. 3. Risk indicators include reliance on a single supplier for critical engine components. 4. Performance context is tied to ongoing Army aviation readiness requirements. 5. This contract positions General Electric as a key supplier within the military aircraft engine sector.
Value Assessment
Rating: fair
The awarded amount of $92.8 million for T700 turbine engine production requires further benchmarking. Without comparative data on similar engine procurements or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price contract type provides some cost certainty, but the lack of competition raises concerns about potentially inflated pricing. Benchmarking against historical T700 engine costs or prices for similar military turbine engines would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates a rapid award. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective pricing available in the market. This sole-source award limits the government's ability to leverage competitive pressures to drive down costs for essential military equipment.
Public Impact
The U.S. Army benefits directly from this contract through the procurement of essential turbine engines for its aircraft fleet. Services delivered include the production of T700 turbine engines, critical for maintaining aviation readiness. The geographic impact is primarily within Massachusetts, where General Electric Company is located, potentially supporting local jobs. Workforce implications include the continued employment of skilled labor in advanced manufacturing and aerospace engineering at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Reliance on a single supplier for critical engine components could pose supply chain risks.
- Lack of transparency in pricing due to non-competitive award.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award supports continued production of a critical military asset.
- General Electric is an established and experienced supplier of military engines.
Sector Analysis
The military aircraft engine market is a highly specialized and concentrated sector dominated by a few major players. General Electric is a significant entity within this space, particularly for turboshaft and turboprop engines used in a wide range of military platforms. This contract for T700 engines fits within the broader defense industrial base's need for reliable and high-performance propulsion systems. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for similar engine types or major component procurements within the Department of Defense.
Small Business Impact
This contract does not appear to include a small business set-aside. Given the specialized nature of turbine engine production, it is unlikely that small businesses would be primary contractors for this specific item. However, General Electric may engage small businesses as subcontractors for components or services, the extent of which is not detailed in the provided data. Further analysis would be needed to determine subcontracting opportunities for small businesses within the broader supply chain.
Oversight & Accountability
Oversight for this contract will likely fall under the Department of Defense's contracting and financial management systems. The firm-fixed-price nature of the contract provides a degree of accountability regarding the final cost. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Regular reporting and performance reviews by the Army contracting command would be standard oversight mechanisms.
Related Government Programs
- T700 Engine Support Contracts
- Military Aircraft Engine Procurement
- Department of the Army Aviation Programs
- Defense Production Act Investments
Risk Flags
- Sole Source Award
- Potential for Cost Overruns
- Supply Chain Dependency
Tags
defense, department-of-defense, department-of-the-army, aircraft-engine-and-engine-parts-manufacturing, firm-fixed-price, delivery-order, sole-source, massachusetts, t700-turbine-engine, general-electric-company, production
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.8 million to GENERAL ELECTRIC COMPANY. T700 TURBINE 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 $92.8 million.
What is the period of performance?
Start: 2025-04-30. End: 2026-07-31.
What is General Electric Company's track record with T700 engine production and delivery for the Department of Defense?
General Electric Company has a long-standing and extensive track record with the T700 engine family, which has been a workhorse for various U.S. military helicopters and some fixed-wing aircraft for decades. They have consistently supplied these engines to the Department of Defense, including the Army, for numerous platforms such as the UH-60 Black Hawk and AH-64 Apache. Their history includes managing production, providing spare parts, and offering maintenance and overhaul services. While specific delivery performance metrics for this particular contract are not detailed, GE's overall experience suggests a high level of familiarity and capability in meeting the DoD's requirements for the T700 series. Past performance reviews and contract histories would provide more granular detail on their reliability and adherence to schedules and specifications.
How does the $92.8 million award compare to historical spending on T700 turbine engines?
To accurately compare the $92.8 million award to historical spending on T700 turbine engines, detailed historical contract data would be required. This would include the number of engines procured in previous awards, the specific configurations (e.g., T700-GE-701D), and the contract type (e.g., firm-fixed-price, cost-plus). Without this granular data, a direct comparison is challenging. However, given that this is for 'production,' it likely represents a significant batch of new engines or major components. Historical data from sources like the Federal Procurement Data System (FPDS) or agency budget justifications could reveal trends in per-unit costs, total annual spending, and the frequency of such awards. If this award covers a substantial quantity of engines, it could be in line with or potentially higher than previous production runs, especially considering inflation and potential technological upgrades.
What are the primary risks associated with this sole-source award for T700 engine production?
The primary risks associated with this sole-source award for T700 engine production are centered around cost and supply chain. Firstly, the lack of competition means the government cannot leverage market forces to ensure the most competitive pricing, potentially leading to higher costs for taxpayers. There is a risk that General Electric Company may not have the same incentive to reduce costs as they would in a competitive environment. Secondly, relying on a single supplier for critical engine components creates a potential supply chain vulnerability. Any disruption at GE's facility, or with their own suppliers, could directly impact the Army's ability to maintain its aviation fleet readiness. This dependence also limits the government's leverage if issues arise regarding quality, delivery schedules, or future pricing negotiations.
What is the expected impact of this contract on the U.S. Army's aviation readiness and operational capabilities?
This contract is expected to have a positive and direct impact on the U.S. Army's aviation readiness and operational capabilities by ensuring a continued supply of T700 turbine engines. These engines are fundamental to the operation of key Army aircraft platforms, most notably the UH-60 Black Hawk utility helicopter and the AH-64 Apache attack helicopter. By securing production through this award, the Army can maintain its existing fleet, replace aging engines, and support ongoing training and operational deployments. A consistent and reliable source of these engines is crucial for minimizing aircraft downtime, ensuring that aircraft are available when needed for missions, and sustaining the overall combat effectiveness of Army aviation assets.
Are there any alternative engine options or potential future competition for T700-equivalent capabilities?
For the specific T700 engine family, direct alternatives are limited due to the highly specialized nature of military aviation and the extensive integration of the T700 into existing platforms like the UH-60 and AH-64. These platforms were designed and certified around the T700's performance characteristics and physical dimensions. While General Electric is the primary, and often sole, source for new T700 production, the Department of Defense does engage in engine upgrade programs and explores next-generation engine technologies. Future competition might arise in the context of developing entirely new engine families for future aircraft or through potential remanufacturing or overhaul contracts where multiple vendors might compete. However, for the direct production of current T700 engines, competition is historically scarce, leading to sole-source or limited-source awards.
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: $92,824,495
Exercised Options: $92,824,495
Current Obligation: $92,824,495
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ24D0053
IDV Type: IDC
Timeline
Start Date: 2025-04-30
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-22
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