DoD Funds GE Partnership for Army Spares and TELSS with $138M Order
Contract Overview
Contract Amount: $138,038,498 ($138.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2013-01-01
End Date: 2013-12-31
Contract Duration: 364 days
Daily Burn Rate: $379.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EXERCISING ORDERING PERIOD 2 OF THE GE/CCAD PARTNERSHIP CONTRACT. PROVIDING FUNDING TO SUPPORT TELSS AND ARMY SPARES
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $138.0 million to GENERAL ELECTRIC COMPANY for work described as: EXERCISING ORDERING PERIOD 2 OF THE GE/CCAD PARTNERSHIP CONTRACT. PROVIDING FUNDING TO SUPPORT TELSS AND ARMY SPARES Key points: 1. Significant funding for essential Army spares and TELSS. 2. Sole-source award to General Electric Company raises competition concerns. 3. Contract duration of 364 days for Ordering Period 2. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: fair
The $138M for Ordering Period 2 is a substantial amount. Without comparable contracts for similar TELSS and Army Spares services, a precise value assessment is difficult. The firm fixed price structure provides some cost certainty.
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 may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Ensures continued support for critical Army logistics and spare parts. Potential for higher costs due to lack of competition. Impact on readiness and operational capabilities of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Provides essential services for Army operations.
- Firm fixed price contract offers cost predictability.
Sector Analysis
This contract falls under Engineering Services, a broad category. The $138M expenditure for this specific ordering period is significant, but without sector-specific benchmarks for TELSS and Army Spares, it's hard to gauge efficiency.
Small Business Impact
The data indicates this contract was awarded to General Electric Company and does not mention any subcontracting opportunities for small businesses. The sole-source nature further limits potential small business involvement.
Oversight & Accountability
The contract is a sole-source award, which typically warrants close oversight to ensure fair pricing and necessity. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency
Tags
engineering-services, department-of-defense, oh, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $138.0 million to GENERAL ELECTRIC COMPANY. EXERCISING ORDERING PERIOD 2 OF THE GE/CCAD PARTNERSHIP CONTRACT. PROVIDING FUNDING TO SUPPORT TELSS AND ARMY SPARES
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 $138.0 million.
What is the period of performance?
Start: 2013-01-01. End: 2013-12-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without specific documentation, it's impossible to determine the exact reason, but it's crucial for ensuring taxpayer funds are used appropriately and that competition was genuinely not feasible.
How does the pricing for this sole-source contract compare to industry benchmarks for similar services?
Assessing the pricing of a sole-source contract against industry benchmarks is challenging due to the lack of competitive bids. While the firm fixed price offers some predictability, the absence of competition means there's no direct market comparison. A thorough review by an independent cost analyst would be needed to determine if the price is fair and reasonable compared to what might be achieved through competition.
What is the long-term strategy for ensuring competitive sourcing of TELSS and Army Spares to achieve better value?
The long-term strategy should focus on breaking down requirements into smaller, more competitive packages where possible, or exploring alternative technologies and providers. The Department of Defense should actively seek opportunities to introduce competition into future contract vehicles for these services, potentially through market research, phased procurements, or by fostering new entrants into the market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
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: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $138,038,498
Exercised Options: $138,038,498
Current Obligation: $138,038,498
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ12D0015
IDV Type: IDC
Timeline
Start Date: 2013-01-01
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2015-07-28
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)