DHS awards $15.6M for HC-144 aircraft engine components to General Electric, citing sole-source justification
Contract Overview
Contract Amount: $15,588,715 ($15.6M)
Contractor: General Electric Company
Awarding Agency: Department of Homeland Security
Start Date: 2025-12-24
End Date: 2028-08-15
Contract Duration: 965 days
Daily Burn Rate: $16.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CT7-9C3 ENGINE ASSEMBLY AND SPARE COMPONENTS FOR THE HC-144 AIRCRAFT.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Homeland Security obligated $15.6 million to GENERAL ELECTRIC COMPANY for work described as: CT7-9C3 ENGINE ASSEMBLY AND SPARE COMPONENTS FOR THE HC-144 AIRCRAFT. Key points: 1. Contract awarded to General Electric for critical aircraft engine components. 2. The award represents a significant investment in maintaining the HC-144 aircraft fleet. 3. Sole-source procurement raises questions about potential cost efficiencies and market alternatives. 4. Long-term contract duration suggests a sustained need for these specific engine parts. 5. The firm-fixed-price structure aims to provide cost certainty for the government. 6. Analysis needed to determine if alternative suppliers or competitive bidding could have yielded better value.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without competitive data. The $15.6 million award for engine assembly and spare components for the HC-144 aircraft requires careful scrutiny. While General Electric is a known provider, the lack of competition means there's no direct comparison to assess if this pricing is optimal. Further analysis into historical pricing for similar components and General Electric's other sole-source contracts would be beneficial to gauge value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the U.S. Coast Guard did not conduct a competitive bidding process. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology or unique capabilities. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, as the government did not explore potential cost savings from multiple bidders.
Public Impact
The U.S. Coast Guard benefits from the continued availability of essential engine components for its HC-144 aircraft fleet. This contract ensures the operational readiness and safety of aircraft used for maritime security, search and rescue, and interdiction missions. The services delivered are critical for maintaining the operational capabilities of a key Coast Guard asset. The geographic impact is national, supporting Coast Guard operations across various regions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits opportunities for cost savings through competition.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for over-reliance on a single supplier for critical components.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Award to a known, established manufacturer of aircraft engines.
- Contract duration ensures long-term supply chain stability for critical parts.
Sector Analysis
The aircraft engine and engine parts manufacturing sector is a highly specialized and critical component of the aerospace industry. Companies like General Electric are dominant players, often holding proprietary technologies and extensive expertise. Government contracts for such specialized parts are common, particularly for maintaining aging or unique aircraft fleets. The market is characterized by high barriers to entry and significant R&D investment. This contract fits within the broader defense and public safety spending on aviation assets.
Small Business Impact
This contract does not appear to involve a small business set-aside. Given the specialized nature of aircraft engine components and the sole-source award to a large corporation like General Electric, subcontracting opportunities for small businesses may be limited. Further investigation into General Electric's subcontracting plans would be necessary to assess any potential impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Transparency is limited due to the sole-source nature. Accountability measures would be tied to the delivery of specified engine components according to the firm-fixed-price terms and delivery schedule. There is no explicit mention of an Inspector General's specific jurisdiction over this particular award, but general oversight functions would apply.
Related Government Programs
- HC-144 Aircraft Sustainment
- Aviation Maintenance and Repair
- Defense Logistics Agency (DLA) Aviation
- General Electric Aviation Contracts
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency
Tags
defense, department-of-homeland-security, u.s.-coast-guard, aircraft-engine-and-engine-parts-manufacturing, sole-source, firm-fixed-price, general-electric-company, hc-144-aircraft, massachusetts, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.6 million to GENERAL ELECTRIC COMPANY. CT7-9C3 ENGINE ASSEMBLY AND SPARE COMPONENTS FOR THE HC-144 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 $15.6 million.
What is the period of performance?
Start: 2025-12-24. End: 2028-08-15.
What is General Electric's track record with sole-source contracts for similar aircraft engine components?
General Electric, as a major aerospace manufacturer, has a history of sole-source contracts, particularly for proprietary engine technologies and specialized components where they are the sole qualified producer. Analyzing their past sole-source awards for similar military or civilian aircraft engines can provide insight into pricing trends and the justification typically provided. This includes examining the duration of such contracts, the total value, and any performance metrics. Without specific data on this contract's predecessors or comparable GE sole-source awards, it's difficult to definitively assess if this $15.6 million award is aligned with historical patterns or represents an outlier. However, the nature of sole-source awards inherently carries a higher risk of inflated pricing compared to competitive procurements.
How does the $15.6 million value compare to similar HC-144 aircraft engine component procurements or market rates?
Direct comparison of the $15.6 million value is challenging due to the sole-source nature of this award and the specific components involved (assembly and spare parts). Publicly available data on specific HC-144 engine component costs is scarce. However, a general benchmark for aircraft engine maintenance and parts can be established by looking at broader defense spending categories for aviation sustainment. If this amount represents a significant portion of the HC-144's annual operating budget or exceeds typical spending for similar aircraft classes, it warrants further investigation. Without access to detailed cost breakdowns or competitive bids from other potential suppliers, assessing whether this price is competitive or inflated remains difficult. The long contract duration (through August 2028) also suggests a need to evaluate the annualized cost.
What are the primary risks associated with this sole-source contract for the U.S. Coast Guard?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the government has less leverage to negotiate favorable terms and may end up paying more than necessary for the engine components. Another risk is vendor lock-in, where the Coast Guard becomes overly dependent on General Electric for critical parts, potentially limiting future flexibility in sourcing or technology upgrades. Performance risk also exists; while GE is a reputable company, any delays or quality issues in delivering these essential components could impact the operational readiness of the HC-144 fleet. Finally, the lack of transparency inherent in sole-source awards can make it harder to justify expenditures to taxpayers.
What is the expected program effectiveness and impact on HC-144 operational readiness?
The expected program effectiveness hinges on the timely and quality delivery of the specified engine assembly and spare components by General Electric. Successful execution of this contract is crucial for maintaining the operational readiness of the HC-144 aircraft, which are vital for the U.S. Coast Guard's missions, including maritime patrol, search and rescue, and law enforcement. Ensuring a steady supply of these critical parts directly supports flight hours and reduces downtime for maintenance. The firm-fixed-price structure and the contract's duration (ending August 2028) suggest an intent to ensure sustained operational capability. The effectiveness will ultimately be measured by the continued availability and reliability of the HC-144 fleet.
What are the historical spending patterns for HC-144 aircraft sustainment and engine maintenance within the U.S. Coast Guard?
Historical spending patterns for HC-144 aircraft sustainment and engine maintenance within the U.S. Coast Guard are essential for contextualizing this $15.6 million award. While specific figures for engine components are not readily available, overall HC-144 sustainment costs can be examined. This includes looking at previous contracts for parts, labor, and support services related to the aircraft. Analyzing trends in spending over the life cycle of the HC-144 program can reveal whether costs have been increasing, decreasing, or remaining stable. Understanding these patterns, especially in relation to fleet size and operational tempo, helps determine if the current award is an anomaly or part of a consistent spending trajectory. A significant increase in spending without a corresponding increase in fleet size or operational demands might indicate potential inefficiencies or price escalations.
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
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: $15,588,715
Exercised Options: $15,588,715
Current Obligation: $15,588,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z03822DL0000009
IDV Type: IDC
Timeline
Start Date: 2025-12-24
Current End Date: 2028-08-15
Potential End Date: 2028-08-15 00:00:00
Last Modified: 2025-12-24
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