DOD awards $18.4M for aircraft turbine rotors to General Electric, facing limited competition
Contract Overview
Contract Amount: $18,443,600 ($18.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2010-03-31
End Date: 2014-03-15
Contract Duration: 1,445 days
Daily Burn Rate: $12.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROTOR, TURBINE AIRCRAFT
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $18.4 million to GENERAL ELECTRIC COMPANY for work described as: ROTOR, TURBINE AIRCRAFT Key points: 1. Significant contract value of $18.4 million for critical aircraft components. 2. Sole-source award to General Electric Company indicates potential lack of competition. 3. Contract duration of over 4 years suggests long-term reliance on this supplier. 4. The 'Aircraft Engine and Engine Parts Manufacturing' sector is vital for defense readiness.
Value Assessment
Rating: fair
The contract value of $18.4 million for turbine rotors is substantial. Without comparable contract data or a competitive bidding process, assessing its pricing fairness against similar procurements is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric Company. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for these critical aircraft components.
Public Impact
Ensures continued operation and maintenance of critical military aircraft. Supports the 'Aircraft Engine and Engine Parts Manufacturing' industry, a key defense sector. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Ensures availability of critical parts
- Supports established defense supplier
Sector Analysis
The 'Aircraft Engine and Engine Parts Manufacturing' sector is crucial for national defense, requiring specialized expertise and production capabilities. Spending in this area is often characterized by high R&D costs and long product lifecycles.
Small Business Impact
The award to General Electric Company, a large corporation, suggests limited direct benefit to small businesses in this specific contract. Further analysis would be needed to determine if any subcontracting opportunities were allocated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not pursuing competitive options. Oversight should focus on the necessity of this procurement method.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to GENERAL ELECTRIC COMPANY. ROTOR, TURBINE AIRCRAFT
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2010-03-31. End: 2014-03-15.
What is the justification for the sole-source award of this turbine rotor contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one supplier can meet the requirements. Without specific documentation, it's difficult to ascertain the exact reason, but it implies that General Electric Company is the only viable source for these specific turbine rotors at the time of award.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs for the government compared to competitive ones. This is because the absence of bidding removes the incentive for the supplier to offer the lowest possible price. The government may end up paying a premium, the extent of which is unknown without a benchmark.
How does the long contract duration affect the overall value and risk for the Department of Defense?
A long contract duration (over 4 years) for critical components like turbine rotors can ensure supply chain stability and predictable costs. However, it also locks the DOD into a single supplier, potentially missing out on cost savings from future technological advancements or competitive market shifts. It also carries the risk of supplier performance issues over an extended period.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1000 WESTERN AVE, LYNN, MA, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,443,600
Exercised Options: $18,443,600
Current Obligation: $18,443,600
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ09D0041
IDV Type: IDC
Timeline
Start Date: 2010-03-31
Current End Date: 2014-03-15
Potential End Date: 2014-03-15 00:00:00
Last Modified: 2011-03-22
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