DHS awards $14.3M sole-source contract for T700-401D engines for MH-60T aircraft
Contract Overview
Contract Amount: $14,311,362 ($14.3M)
Contractor: General Electric Company
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-05
End Date: 2028-03-10
Contract Duration: 917 days
Daily Burn Rate: $15.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF NEW T700-401D ENGINE TO BE UTILIZED ON THE MH-60T AIRCRAFT.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Homeland Security obligated $14.3 million to GENERAL ELECTRIC COMPANY for work described as: PROCUREMENT OF NEW T700-401D ENGINE TO BE UTILIZED ON THE MH-60T AIRCRAFT. Key points: 1. Contract awarded to General Electric Company for critical aircraft engine components. 2. Sole-source award indicates potential lack of market competition or specific vendor requirements. 3. Long-term contract duration (over 5 years) suggests sustained need for these engines. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. The procurement supports the operational readiness of the MH-60T aircraft fleet. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
The contract value of $14.3 million for T700-401D engines appears to be a significant investment. Benchmarking this against similar sole-source procurements for specialized aviation components is challenging without more detailed market data. The firm fixed price structure provides cost certainty, but the absence of competition limits the government's ability to negotiate the best possible price. Further analysis would require understanding the specific technical requirements and the availability of alternative engine models or manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for excluding competition. The lack of competition means that the government did not benefit from price discovery through a bidding process, potentially leading to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive environment, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
The U.S. Coast Guard benefits from the continued availability of essential engines for its MH-60T aircraft. This contract ensures the operational readiness and mission capability of a critical aviation asset. The procurement directly supports the maintenance and sustainment of the MH-60T helicopter fleet. The workforce involved in the manufacturing and maintenance of these engines is supported by this award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the justification for sole-source award.
- Long-term contract duration could lock the government into a specific technology or vendor.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Ensures availability of critical components for essential aircraft.
- Award to a known, established manufacturer with expertise in this engine type.
Sector Analysis
The aerospace and defense sector, particularly the aircraft engine manufacturing segment, is characterized by high barriers to entry due to complex technology, significant R&D investment, and stringent regulatory requirements. General Electric is a major player in this market. This contract fits within the broader category of sustainment and maintenance for military and government aviation assets, a significant portion of defense spending. Comparable spending benchmarks would typically involve other sole-source or limited-competition procurements for specialized aviation parts.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like General Electric suggests that small business participation would likely occur through the prime's supply chain, if at all. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designed to directly benefit small businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- MH-60T Helicopter Sustainment
- Aviation Engine Procurement
- Department of Homeland Security Aircraft Maintenance
- General Electric Aviation Contracts
Risk Flags
- Sole-source award may limit price competition.
- Lack of transparency regarding justification for sole-source.
- Potential for price escalation over contract duration.
Tags
defense, u-s-coast-guard, department-of-homeland-security, aircraft-engine, sole-source, firm-fixed-price, long-term-contract, massachusetts, general-electric-company, mh-60t-aircraft
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $14.3 million to GENERAL ELECTRIC COMPANY. PROCUREMENT OF NEW T700-401D ENGINE TO BE UTILIZED ON THE MH-60T AIRCRAFT.
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2025-09-05. End: 2028-03-10.
What is the historical spending pattern for T700-401D engines by the U.S. Coast Guard or other agencies?
Analyzing historical spending for T700-401D engines is crucial for understanding the long-term cost implications and identifying potential trends in procurement. Without specific historical data for this exact engine model and its variants, a comprehensive analysis is difficult. However, the T700 engine family has a long service history across various military and government platforms, including helicopters like the Black Hawk and Apache. Agencies that operate these platforms often engage in multi-year sustainment contracts for engines and spare parts. The U.S. Coast Guard's reliance on the MH-60T suggests a consistent need for these engines. Past procurements of similar high-value, specialized aerospace components, especially those with sole-source characteristics, often reveal significant year-over-year expenditures. Understanding the total cost of ownership, including maintenance, overhauls, and spare parts, is essential for a complete picture of historical spending.
What is the justification for awarding this contract on a sole-source basis to General Electric Company?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of viable alternatives in the market. For the T700-401D engine, General Electric Company is the original equipment manufacturer (OEM) and likely holds the intellectual property rights and specialized manufacturing knowledge. The MH-60T aircraft is a specific variant, and its operational requirements may be tightly integrated with this particular engine model. Agencies often cite reasons such as ensuring interoperability, maintaining safety standards, or avoiding costly re-engineering efforts when justifying sole-source procurements for complex systems like aircraft engines. A formal justification document, often found in contract award notices, would detail the specific reasons, such as the unavailability of a competitive source or a critical need that cannot be met by other means within the required timeframe.
How does the pricing of this contract compare to market rates or previous procurements of similar engines?
Comparing the pricing of this contract to market rates or previous procurements is challenging without access to detailed pricing data and specific market benchmarks for the T700-401D engine. As a sole-source award, the government did not benefit from competitive bidding, which typically drives prices down. The firm fixed price (FFP) contract type aims to provide cost certainty, but the baseline price is set without competitive pressure. To assess value, one would need to compare the per-unit cost against any historical data available for this engine model, or against prices paid by other entities operating similar aircraft. Industry analysts or government cost estimators might use parametric estimating or analogous estimating techniques, but these rely on access to proprietary or historical cost information that is not publicly available in this context. The absence of competition inherently raises questions about whether the government is achieving the best possible value.
What are the potential risks associated with a long-term, sole-source contract for aircraft engines?
Long-term, sole-source contracts for critical components like aircraft engines carry several potential risks. Firstly, there is a risk of price escalation over the contract's duration, as the government may be locked into paying prices set by a single supplier without the benefit of ongoing market competition. Secondly, technological obsolescence is a concern; the contracted engine might become outdated, yet the government remains committed to purchasing it. Thirdly, vendor lock-in can occur, making it difficult and costly to switch to alternative suppliers or technologies in the future. Dependence on a single supplier also increases vulnerability to supply chain disruptions or the contractor's business decisions. Finally, without competitive pressure, there might be less incentive for the contractor to innovate or improve efficiency, potentially impacting long-term performance and cost-effectiveness.
What is the expected performance and reliability of the T700-401D engine, and how is this ensured under the contract?
The T700-401D engine is a derivative of the widely used T700 family, known for its robust performance and reliability in demanding aviation environments. These engines are designed to provide significant power output for medium-lift helicopters. Under the contract, performance and reliability are typically ensured through detailed technical specifications and requirements outlined in the contract's Statement of Work (SOW). The firm fixed price nature of the contract incentivizes the contractor to meet these specifications to avoid penalties or non-conformance issues. The U.S. Coast Guard would likely have acceptance testing procedures and quality assurance measures in place to verify that the delivered engines meet the required standards. Furthermore, the contractor's reputation and past performance in delivering reliable engines for similar platforms also serve as an indicator of expected performance.
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
Solicitation ID: 70Z03824RJ0000001
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: $14,311,362
Exercised Options: $14,311,362
Current Obligation: $14,311,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z03824DJ0000013
IDV Type: IDC
Timeline
Start Date: 2025-09-05
Current End Date: 2028-03-10
Potential End Date: 2028-03-10 00:00:00
Last Modified: 2026-04-07
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