DHS awards $11M sole-source contract for T700-401D engines for MH-60T aircraft
Contract Overview
Contract Amount: $11,008,740 ($11.0M)
Contractor: General Electric Company
Awarding Agency: Department of Homeland Security
Start Date: 2024-12-19
End Date: 2026-06-24
Contract Duration: 552 days
Daily Burn Rate: $19.9K/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 $11.0 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 raises questions about competition and potential cost savings. 3. Engine is essential for MH-60T aircraft operations, indicating high performance requirements. 4. Long contract duration suggests a sustained need for these engines. 5. Firm Fixed Price contract type aims to provide cost certainty. 6. No small business set-aside indicates focus on specialized capabilities.
Value Assessment
Rating: fair
The contract value of $11,008,740 for T700-401D engines for the MH-60T aircraft is difficult to benchmark without more detailed specifications and market data. As a sole-source award, direct comparison to competitive bids is not possible. The firm-fixed-price structure provides cost predictability for the government. However, the absence of competition may lead to a higher price than could be achieved through a competitive process. Further analysis of historical pricing for similar engine procurements or components would be necessary to fully assess value for money.
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 a unique product or service is required, or when only one vendor possesses the necessary capabilities. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. This raises concerns about whether the government secured the best possible price.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall expenditure for this critical equipment.
Public Impact
The U.S. Coast Guard benefits from the continued operational readiness of its MH-60T aircraft fleet. Essential engine components will be supplied, ensuring the functionality of vital search and rescue, maritime law enforcement, and homeland security missions. The geographic impact is national, supporting Coast Guard operations across various regions. The contract supports specialized manufacturing jobs within the aerospace industry, specifically related to engine production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price negotiation and potential cost savings.
- Lack of competition may indicate a lack of market availability or reliance on a single supplier.
- Long-term contract duration could expose the government to price increases over time if not managed carefully.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the duration of the delivery order.
- Procurement of essential components ensures the operational readiness of critical MH-60T aircraft.
- General Electric Company is a known and established supplier of aircraft engines.
Sector Analysis
The aerospace and defense sector, particularly the manufacturing of aircraft engines and parts, is characterized by high barriers to entry, significant research and development costs, and a limited number of major players. General Electric is a dominant force in this market. This contract fits within the broader category of defense procurement, specifically focusing on sustainment and readiness for rotary-wing aircraft. Comparable spending benchmarks would involve analyzing other engine procurements for similar aircraft platforms or engine models within the Department of Defense and other federal agencies.
Small Business Impact
This contract does not appear to include a small business set-aside, which is common for highly specialized and high-value procurements like aircraft engines. The prime contractor, General Electric Company, is a large business. There is no immediate indication of subcontracting opportunities for small businesses within the provided data, though large prime contractors often engage small businesses for various components or services. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will primarily fall under the U.S. Coast Guard's contracting and program management offices. As a sole-source award, it may receive additional scrutiny. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified goods at the agreed-upon price. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- MH-60T Helicopter Procurement
- Aircraft Engine Maintenance and Repair
- Aerospace Manufacturing Contracts
- Department of Homeland Security Aviation Assets
Risk Flags
- Sole-source award
- Potential for higher cost due to lack of competition
- Reliance on a single supplier
Tags
defense, department-of-homeland-security, u.s.-coast-guard, aircraft-engine, sole-source, firm-fixed-price, general-electric-company, massachusetts, rotary-wing-aircraft, procurement-of-new-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.0 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 $11.0 million.
What is the period of performance?
Start: 2024-12-19. End: 2026-06-24.
What is General Electric Company's track record with T700 engine variants for military and government aircraft?
General Electric Company has a long and established history with the T700 engine family, which powers a wide range of military helicopters, including the Black Hawk and Apache. The T700-401D variant is specifically designed for certain MH-60 variants. GE's track record with these engines is generally considered strong in terms of performance and reliability, having supplied them for decades. However, like any complex machinery, issues can arise, and the company's performance is often evaluated based on delivery timelines, adherence to specifications, and responsiveness to technical challenges. Historical data from government contract databases would provide a more granular view of their performance on specific contracts, including on-time delivery rates and any reported issues or modifications.
How does the $11 million contract value compare to previous procurements of T700-401D engines or similar engine types?
Direct comparison of the $11,008,740 contract value for T700-401D engines is challenging without specific details on the number of engines procured under this delivery order and the exact configuration. However, historical data from sources like the Federal Procurement Data System (FPDS) can offer insights. For instance, previous delivery orders for T700 engines for various MH-60 variants have ranged from hundreds of thousands to several million dollars, depending on the quantity and specific model. A sole-source award, as in this case, inherently limits direct price comparison to competitive bids. To assess value, one would need to analyze the average price per engine over time and compare it to market intelligence or internal cost estimates, considering factors like inflation and technological updates.
What are the primary risks associated with a sole-source procurement for critical aircraft engine components?
The primary risk associated with a sole-source procurement for critical aircraft engine components is the potential for inflated pricing due to the lack of competition. Without competing bids, the government has less leverage to negotiate the best possible price. This can lead to higher costs for taxpayers. Another risk is vendor lock-in, where the government becomes overly reliant on a single supplier, potentially limiting future flexibility and innovation. Furthermore, a sole-source award might mask underlying issues with the market's ability to support the requirement competitively, or it could indicate a lack of proactive planning by the agency to foster competition. Ensuring fair and reasonable pricing through rigorous negotiation and cost analysis becomes paramount in such scenarios.
What is the expected program effectiveness and impact of these new T700-401D engines on MH-60T aircraft operations?
The procurement of new T700-401D engines is critical for maintaining the operational effectiveness of the U.S. Coast Guard's MH-60T "Jayhawk" helicopter fleet. These engines are the power source for the aircraft, directly impacting their ability to perform a wide range of missions, including search and rescue, maritime law enforcement, counter-narcotics, and homeland security operations. By ensuring the availability of reliable and well-maintained engines, the Coast Guard can sustain its operational tempo and readiness. This directly translates to improved public safety and security outcomes, as the MH-60T is a key asset for responding to emergencies and threats in coastal and maritime environments. The contract's duration suggests a commitment to long-term fleet readiness.
How does this contract align with historical spending patterns for aircraft engine procurement by the Department of Homeland Security or the U.S. Coast Guard?
Historical spending patterns for aircraft engine procurement by the Department of Homeland Security (DHS) and the U.S. Coast Guard (USCG) show a consistent need for engine sustainment and replacement for their aviation assets. The MH-60T helicopter, a variant of the widely used Black Hawk, relies on T700 engine variants. Therefore, recurring procurements of these engines or their components are expected. The value of this $11 million contract falls within the typical range for significant engine-related procurements, especially for sole-source awards where specific configurations or immediate needs drive the acquisition. Analyzing past FPDS data for similar engine procurements for the MH-60T or other USCG aircraft would reveal trends in contract values, award types (competitive vs. sole-source), and the primary contractors involved, providing context for this specific award.
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: $11,008,740
Exercised Options: $11,008,740
Current Obligation: $11,008,740
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z03824DJ0000013
IDV Type: IDC
Timeline
Start Date: 2024-12-19
Current End Date: 2026-06-24
Potential End Date: 2026-06-24 00:00:00
Last Modified: 2026-04-07
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