DoD's $287M Adaptive Engine Technology Development contract awarded to GE for R&D in Ohio
Contract Overview
Contract Amount: $287,017,743 ($287.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2012-09-21
End Date: 2018-02-28
Contract Duration: 1,986 days
Daily Burn Rate: $144.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST SHARING
Sector: R&D
Official Description: ADAPTIVE ENGINE TECHNOLOGY DEVELOPMENT (AETD)
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $287.0 million to GENERAL ELECTRIC COMPANY for work described as: ADAPTIVE ENGINE TECHNOLOGY DEVELOPMENT (AETD) Key points: 1. Contract focused on advanced engine research, indicating a commitment to future defense capabilities. 2. Awarded through full and open competition, suggesting a robust market for this technology. 3. The contract duration of nearly 2000 days highlights the long-term nature of R&D projects. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for innovation. 5. The contract's value places it as a significant investment within its research category. 6. Performance context is primarily research-based, with outcomes likely measured by technological advancements rather than immediate operational deployment.
Value Assessment
Rating: good
The contract value of $287 million for a multi-year R&D effort appears reasonable given the scope of developing advanced engine technologies. Benchmarking against similar large-scale defense R&D contracts is challenging due to the specialized nature of adaptive engine technology. However, the award to a major aerospace contractor like General Electric suggests a competitive process that likely yielded a fair price for the research services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The presence of three bidders (implied by 'no': 3) suggests a healthy level of competition for this advanced technology development. This competitive environment is generally favorable for price discovery and ensuring the government receives the best value.
Taxpayer Impact: Taxpayers benefit from full and open competition as it drives innovation and potentially lowers costs through market forces, ensuring funds are used efficiently for critical defense research.
Public Impact
The primary beneficiaries are the Department of Defense, which gains access to next-generation engine technology. The services delivered include advanced research and development in aerospace propulsion systems. The geographic impact is centered in Ohio, where the contractor's research facilities are located. Workforce implications include highly skilled engineering and technical jobs in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving requirements that increase costs.
- The specialized nature of R&D means outcomes are not guaranteed, posing a risk to investment.
- Reliance on a single contractor for a significant portion of the development could limit future options.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contractor's established expertise in engine technology suggests a high likelihood of successful research outcomes.
- Focus on advanced technology development aligns with strategic defense modernization goals.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for advanced propulsion systems. The market for such specialized R&D is typically dominated by a few large, established aerospace companies. The $287 million value represents a significant investment in future military capabilities, aiming to enhance aircraft performance and efficiency.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions, as it was awarded under full and open competition to a large prime contractor. However, the prime contractor may engage small businesses for subcontracting opportunities related to specialized components or services, contributing to the broader small business ecosystem within the aerospace supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with research milestones and financial accountability. The Department of Defense's R&D funding processes include inherent oversight through program reviews and budget justifications. Transparency is generally maintained through contract award databases and public reporting, though specific R&D details may be sensitive.
Related Government Programs
- Advanced Engine Development Programs
- Defense Research and Development
- Aerospace Propulsion Technology
- Military Aircraft Modernization
Risk Flags
- Long contract duration
- High R&D investment
- Specialized technology area
Tags
defense, department-of-defense, research-and-development, aerospace, propulsion, general-electric, full-and-open-competition, ohio, large-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $287.0 million to GENERAL ELECTRIC COMPANY. ADAPTIVE ENGINE TECHNOLOGY DEVELOPMENT (AETD)
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $287.0 million.
What is the period of performance?
Start: 2012-09-21. End: 2018-02-28.
What is General Electric Company's track record with large-scale DoD R&D contracts?
General Electric Company (GE) has a long and extensive history of performing large-scale Research and Development (R&D) contracts for the Department of Defense (DoD). As a major aerospace and defense contractor, GE has been instrumental in developing advanced engine technologies for various military platforms, including fighter jets and transport aircraft. Their track record includes numerous successful programs that have led to significant technological advancements in propulsion. For instance, GE has been a key player in developing engines for the F110, F118, and F136 programs, among others. Their ability to secure and execute complex, multi-year R&D contracts like the Adaptive Engine Technology Development (AETD) underscores their deep expertise, robust engineering capabilities, and established relationship with the DoD. This history suggests a strong capacity to manage the technical challenges and program requirements inherent in cutting-edge research projects.
How does the $287 million contract value compare to similar R&D efforts in advanced propulsion?
The $287 million contract value for the Adaptive Engine Technology Development (AETD) awarded to General Electric Company is substantial and reflects the complexity and long-term nature of developing next-generation aerospace propulsion systems. While direct comparisons are difficult due to the proprietary nature of R&D and the unique specifications of adaptive engine technology, this figure aligns with the typical investment required for major defense technology initiatives. For context, other significant DoD R&D programs in areas like advanced materials, stealth technology, or directed energy weapons often involve hundreds of millions, if not billions, of dollars over their lifecycle. The AETD contract's value is consistent with the high cost of fundamental research, prototyping, testing, and integration required to achieve breakthroughs in engine efficiency, performance, and survivability. It represents a significant, but not outlier, investment for a critical defense capability.
What are the primary risks associated with this adaptive engine technology development contract?
The primary risks associated with this adaptive engine technology development contract are inherent to the nature of advanced R&D. Firstly, there is a significant technical risk: developing truly novel adaptive engine capabilities involves overcoming complex engineering challenges, and there's no guarantee that the desired performance metrics will be fully achievable within the project's scope or timeline. Secondly, program execution risk exists; long-duration R&D projects can face challenges related to evolving requirements, budget fluctuations, or contractor performance issues. Thirdly, there's a risk of obsolescence; by the time the technology is fully developed and ready for integration, advancements in competing technologies or changes in military strategy could diminish its strategic value. Finally, cost overrun risk is always present in R&D, as unforeseen technical hurdles or scope changes can necessitate additional funding beyond the initial contract value.
How effective is the full and open competition strategy for securing advanced R&D capabilities like adaptive engines?
The full and open competition strategy is generally considered highly effective for securing advanced R&D capabilities, including adaptive engines, as it maximizes the pool of potential offerors and encourages innovation. By allowing any responsible source to submit a proposal, the DoD can access the broadest range of technological expertise and potentially discover novel solutions from companies that might not otherwise be considered. This competitive environment drives contractors to propose their most innovative approaches and competitive pricing to win the award. Furthermore, it fosters a healthy market dynamic, preventing reliance on a single provider and ensuring that the government benefits from diverse perspectives and robust price discovery. While R&D inherently carries uncertainty, full and open competition increases the likelihood of finding the best technical solution at a fair price, even for highly specialized and complex fields like advanced propulsion.
What are the historical spending patterns for R&D in aerospace propulsion within the Department of Defense?
Historical spending patterns for R&D in aerospace propulsion within the Department of Defense show a consistent and significant investment, driven by the need for technological superiority in air power. Over decades, the DoD has allocated substantial funds towards improving engine efficiency, thrust, durability, and reducing the thermal signature of aircraft. Major programs have included the development of turbofan engines, variable cycle engines, and more recently, research into adaptive cycle engines, which can alter their performance characteristics to optimize for different flight regimes (e.g., subsonic cruise versus supersonic dash). Funding levels often fluctuate based on strategic priorities, threat assessments, and the perceived need for next-generation capabilities. Periods of intense geopolitical competition or the introduction of new aircraft platforms typically correlate with increased R&D spending in this area. The AETD contract represents a continuation of this long-standing commitment to advancing aerospace propulsion technology.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST SHARING (T)
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
Financial Breakdown
Contract Ceiling: $446,035,643
Exercised Options: $446,035,643
Current Obligation: $287,017,743
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865009D2922
IDV Type: IDC
Timeline
Start Date: 2012-09-21
Current End Date: 2018-02-28
Potential End Date: 2018-02-28 00:00:00
Last Modified: 2023-10-05
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