DoD awards $165M for F110-GE-129 Engines to General Electric for Turkey
Contract Overview
Contract Amount: $164,985,151 ($165.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2009-07-24
End Date: 2011-12-30
Contract Duration: 889 days
Daily Burn Rate: $185.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F110-GE-129 ENGINES, EMSCS AND DATA FOR GOVT OF TURKEY
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $165.0 million to GENERAL ELECTRIC COMPANY for work described as: F110-GE-129 ENGINES, EMSCS AND DATA FOR GOVT OF TURKEY Key points: 1. General Electric Company is the sole awardee for these aircraft engine parts. 2. The contract was awarded under full and open competition. 3. This award represents a significant expenditure in the aircraft engine manufacturing sector. 4. The contract duration is 889 days.
Value Assessment
Rating: fair
The contract value of $164,985,151 for 2 engines and associated data appears high given the per-unit cost. Benchmarking against similar sole-source or limited competition contracts for advanced military engines is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies that General Electric was the most advantageous offer, potentially limiting price discovery compared to broader competition.
Taxpayer Impact: Taxpayer funds are being used for a foreign military sale, impacting the overall defense budget and potentially influencing international relations.
Public Impact
Supports a foreign military sale to Turkey, enhancing their air force capabilities. Contributes to the production and sustainment of advanced military aircraft engines. Impacts the aerospace and defense manufacturing sector, supporting jobs and technological development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost for engines.
- Limited transparency on specific engine configurations and associated data.
- Potential for cost overruns in long-term sustainment if not managed closely.
Positive Signals
- Awarded under full and open competition.
- Supports a key ally's defense modernization.
- Utilizes established and proven engine technology.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a specialized area of the aerospace industry. Spending benchmarks for similar foreign military sales of advanced jet engines can vary widely based on engine type, quantity, and included support.
Small Business Impact
The awardee is General Electric Company, a large corporation. There is no indication in the provided data that small businesses were directly involved in this specific contract award, though they may be part of GE's supply chain.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force, ensuring contract compliance and delivery. Accountability for performance and cost rests with General Electric, with the government responsible for monitoring adherence to contract terms.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for high sustainment costs.
- Limited visibility into specific technical data provided.
- Dependence on a single supplier for critical components.
- Geopolitical risks associated with foreign military sales.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $165.0 million to GENERAL ELECTRIC COMPANY. F110-GE-129 ENGINES, EMSCS AND DATA FOR GOVT OF TURKEY
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 Air Force).
What is the total obligated amount?
The obligated amount is $165.0 million.
What is the period of performance?
Start: 2009-07-24. End: 2011-12-30.
What is the specific performance capability and lifespan expected from these F110-GE-129 engines, and how does this justify the per-unit cost?
The F110-GE-129 is a high-performance afterburning turbofan engine known for its thrust and reliability, commonly used in fighter aircraft like the F-16. Its advanced capabilities, including high thrust-to-weight ratio and durability, are critical for modern air combat. The cost is influenced by extensive R&D, complex manufacturing, and stringent quality control required for military-grade aviation components, alongside the specific support and data packages included.
Given the 'full and open competition' designation, what factors led to only one bid being considered the most advantageous?
While designated 'full and open,' the nature of advanced military hardware often means only a limited number of entities possess the required technology, manufacturing capacity, and security clearances. General Electric likely submitted the only proposal that met all technical specifications, performance requirements, and offered the best value proposition, potentially including factors like lifecycle support, delivery schedule, and warranty, making it the sole technically acceptable and economically advantageous offer.
How will the performance and reliability of these engines be monitored post-delivery to ensure long-term value and effectiveness for the Turkish Air Force?
Post-delivery monitoring will likely involve a combination of government oversight and contractor support. The Department of Defense and the Turkish Air Force will track engine performance metrics, maintenance records, and operational readiness. General Electric may provide technical support, spare parts, and training, with contractual clauses likely in place for addressing defects or performance shortfalls to ensure the engines deliver expected effectiveness and value over their operational life.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $164,985,151
Exercised Options: $164,985,151
Current Obligation: $164,985,151
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0019
IDV Type: IDC
Timeline
Start Date: 2009-07-24
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2011-07-28
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