DoD Awards $380M to GE for F110 Engines to Qatar, Lacking Competition
Contract Overview
Contract Amount: $379,999,997 ($380.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2017-11-15
End Date: 2022-08-31
Contract Duration: 1,750 days
Daily Burn Rate: $217.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F110 FMS QATAR UCA
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $380.0 million to GENERAL ELECTRIC COMPANY for work described as: F110 FMS QATAR UCA Key points: 1. Significant award to a single, large defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Focus on foreign military sales (FMS) highlights international defense partnerships. 4. Engine parts manufacturing is a critical, high-value sector.
Value Assessment
Rating: questionable
The contract value of $380 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to similar engine procurements or if it reflects a premium due to sole-source status.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for this large contract means taxpayers may be paying more than necessary for these critical aircraft engine components.
Public Impact
Impacts US foreign military sales capabilities and readiness. Affects the availability of advanced aircraft engine parts for allied nations. Highlights the reliance on a single supplier for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Supports allied defense capabilities
- Award to established prime contractor
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a high-value, technologically advanced industry critical to national defense. Benchmarks for similar sole-source engine contracts are often high due to specialized manufacturing and R&D.
Small Business Impact
This contract was awarded to General Electric Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, specialized defense procurements.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and that future opportunities for competition are explored where feasible to maximize taxpayer value.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Long contract duration may not reflect current market conditions.
- Reliance on a single supplier for critical components.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, oh, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $380.0 million to GENERAL ELECTRIC COMPANY. F110 FMS QATAR UCA
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 $380.0 million.
What is the period of performance?
Start: 2017-11-15. End: 2022-08-31.
What is the justification for the sole-source award, and has a market research report been conducted to confirm the lack of viable alternatives?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. A thorough market research report should have been conducted by the Department of Defense to validate these claims and explore any potential for competition, even if limited, to ensure the best possible price and value for the F110 engines procured for Qatar.
How does the pricing of this sole-source contract compare to previous F110 engine procurements or similar engine contracts awarded competitively?
Without competitive bids, direct price comparison is challenging. However, the Department of Defense should benchmark this contract's pricing against historical F110 procurements and comparable engine contracts awarded under competitive conditions. Any significant deviation upwards should be rigorously justified by factors beyond the sole-source status, such as inflation, increased material costs, or unique modifications required for the Qatar FMS.
What measures are in place to ensure the long-term availability and support of these engines, given the reliance on a single manufacturer?
Ensuring long-term availability and support for sole-sourced critical components like aircraft engines involves robust contract management and strategic planning. The Department of Defense should establish clear performance metrics, require comprehensive technical data packages, and potentially negotiate long-term sustainment agreements. Exploring options for second-sourcing or technology transfer for future procurements, where feasible, can mitigate risks associated with single-manufacturer reliance.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
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: $379,999,997
Exercised Options: $379,999,997
Current Obligation: $379,999,997
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $906,495
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862618D0029
IDV Type: IDC
Timeline
Start Date: 2017-11-15
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 00:00:00
Last Modified: 2022-05-16
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