Homeland Security's $2.36M T700-401D Engine Order for MH-60T Aircraft Awarded to General Electric
Contract Overview
Contract Amount: $2,355,870 ($2.4M)
Contractor: General Electric Company
Awarding Agency: Department of Homeland Security
Start Date: 2026-01-13
End Date: 2027-07-18
Contract Duration: 551 days
Daily Burn Rate: $4.3K/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 $2.4 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. Value-for-money assessment is pending further benchmarking against comparable engine procurements. 2. The contract was awarded on a sole-source basis, limiting competitive dynamics. 3. Risk indicators include the sole-source nature and potential for price escalation without competition. 4. Performance context is tied to the operational readiness of the MH-60T aircraft fleet. 5. This contract falls within the Defense Industrial Base sector, specifically aircraft engine manufacturing.
Value Assessment
Rating: fair
The contract value of $2.36 million for T700-401D engines appears reasonable on its face, but a definitive value-for-money assessment requires comparison with similar engine procurements. Without competitive bidding, it is difficult to ascertain if the pricing reflects market rates or if there is an opportunity for cost savings. The firm-fixed-price structure offers some cost certainty, but the absence of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed and was awarded directly to General Electric Company. The sole-source nature means there was no opportunity for other manufacturers to bid, which can limit price discovery and potentially lead to higher costs for the government. The lack of competition suggests potential reliance on a single supplier for these specific engines.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, as the government did not explore alternative pricing or suppliers.
Public Impact
The primary beneficiaries are the U.S. Coast Guard, ensuring the continued operational capability of its MH-60T aircraft fleet. The services delivered include the procurement of essential T700-401D engines, critical for aircraft maintenance and readiness. The geographic impact is primarily within the United States, supporting Coast Guard operations nationwide. Workforce implications include supporting jobs within General Electric's engine manufacturing and support divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs.
- Lack of transparency in pricing due to no competitive bidding process.
- Potential for vendor lock-in if alternative engine options are not viable.
- Dependence on a single supplier for critical aircraft components.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to a known, established manufacturer (General Electric) suggests reliability.
- Ensures continued operational readiness of vital MH-60T aircraft.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry and significant R&D investment. Aircraft engine manufacturing, in particular, is dominated by a few major players like General Electric. This contract for T700-401D engines fits within this specialized segment. Comparable spending benchmarks for similar engine procurements would be necessary for a robust value analysis, but the market is generally concentrated.
Small Business Impact
This contract does not appear to involve small business set-asides or subcontracting opportunities, as it was a sole-source award to a large prime contractor. The focus is on direct procurement from the original equipment manufacturer, with no explicit provisions for engaging small businesses in this specific transaction.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified engines at the agreed-upon price. Transparency is limited due to the sole-source nature of the award.
Related Government Programs
- MH-60T Aircraft Procurement
- Aviation Engine Maintenance and Repair
- Department of Homeland Security Aviation Assets
- General Electric T700 Engine Family
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation without competition
Tags
defense, homeland-security, u.s.-coast-guard, aircraft-engine, general-electric, sole-source, firm-fixed-price, delivery-order, massachusetts, t700-401d, mh-60t
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $2.4 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 $2.4 million.
What is the period of performance?
Start: 2026-01-13. End: 2027-07-18.
What is the historical spending pattern for T700-401D engines by the U.S. Coast Guard or similar agencies?
Historical spending data for T700-401D engines by the U.S. Coast Guard or comparable agencies is crucial for benchmarking. Without access to specific past contract values, quantities, and award dates, it's challenging to establish a trend or identify significant deviations in the current $2.36 million award. Analyzing previous sole-source awards for these engines, or competitively bid procurements if they exist, would reveal if this price point is consistent, increasing, or decreasing over time. Understanding the volume of engines procured in the past also provides context for the unit cost. If historical data shows significantly lower prices or more competitive bidding processes, it would raise concerns about the current award's value.
What is General Electric Company's track record with T700-401D engine production and delivery for military or government contracts?
General Electric Company has a long-standing and extensive track record with the T700 engine family, which powers numerous military and rotorcraft platforms, including variants used by the U.S. military and allied nations. The T700-401D is a specific model within this family, often associated with maritime helicopter applications. GE's history typically involves robust production capabilities and established support infrastructure. However, track record assessment should also consider past performance reviews, any instances of delivery delays, quality issues, or contract disputes related to this or similar engine programs. For this specific contract, confirming GE's ability to meet the delivery schedule and quality standards outlined in the award is paramount, especially given the sole-source nature.
How does the pricing of this T700-401D engine procurement compare to market rates for similar aviation engines?
Benchmarking the pricing of this T700-401D engine against market rates is challenging without access to detailed cost breakdowns or competitive bids. However, general industry knowledge suggests that specialized aviation engines, particularly those for military applications, command premium pricing due to complex engineering, rigorous testing, and high manufacturing standards. The absence of competition in this sole-source award means the government is reliant on General Electric's proposed pricing. To assess market rates, one would typically look at publicly available contract awards for similar engines (e.g., other T700 variants, or engines of comparable power and application from competitors like Pratt & Whitney Canada), factoring in quantity discounts, contract type, and specific configuration requirements. Without such comparative data, the $2.36 million figure remains an isolated data point.
What are the potential risks associated with a sole-source procurement of critical aircraft engines?
Sole-source procurements of critical aircraft engines carry several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures that arise from multiple bidders vying for the contract. Secondly, it can result in reduced innovation and responsiveness from the sole supplier, as there is less incentive to improve products or services when there is no competitive threat. Thirdly, it creates a dependency on a single vendor, making the government vulnerable to supply chain disruptions, price hikes, or changes in the vendor's business strategy. Finally, it limits the government's ability to explore alternative technologies or solutions that might be more cost-effective or performant in the long run.
What is the significance of the firm-fixed-price contract type for this procurement?
The firm-fixed-price (FFP) contract type is significant because it shifts the majority of the cost risk from the government to the contractor, General Electric Company. Under an FFP agreement, the contractor is obligated to complete the work (deliver the engines) for a predetermined price, regardless of their actual costs incurred. This provides the government with cost certainty and predictability, making budgeting easier. It incentivizes the contractor to manage its costs efficiently to maximize profit. However, for FFP contracts, especially sole-source ones, the initial price negotiation is critical. If the government does not adequately negotiate the price or lacks sufficient market intelligence, the 'fixed' price could still be higher than what would have been achieved through competition.
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: $2,355,870
Exercised Options: $2,355,870
Current Obligation: $2,355,870
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z03824DJ0000013
IDV Type: IDC
Timeline
Start Date: 2026-01-13
Current End Date: 2027-07-18
Potential End Date: 2027-07-18 00:00:00
Last Modified: 2026-04-07
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