Navy Awards $194.5M for Aircraft Engines to General Electric, Sole Source
Contract Overview
Contract Amount: $194,525,281 ($194.5M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2020-02-01
End Date: 2020-12-31
Contract Duration: 334 days
Daily Burn Rate: $582.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAL AVIATION
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $194.5 million to GENERAL ELECTRIC COMPANY for work described as: NAVAL AVIATION Key points: 1. Significant contract value for critical aviation components. 2. Sole-source award to General Electric raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on aircraft engine manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $194.5M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar engine contracts in the market. Benchmarking is needed.
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, was considered. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft engines.
Public Impact
Ensures continued operation and maintenance of naval aircraft. Supports a major defense contractor and its supply chain. Potential impact on readiness if parts are not cost-effectively sourced.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential for naval aviation
- Supports critical defense needs
Sector Analysis
This contract falls within the aircraft engine and parts manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is often driven by defense needs and can involve high-value, specialized components.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Navy's contracting office managed this award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparent price discovery.
- Dependence on a single supplier.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $194.5 million to GENERAL ELECTRIC COMPANY. NAVAL AVIATION
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 Navy).
What is the total obligated amount?
The obligated amount is $194.5 million.
What is the period of performance?
Start: 2020-02-01. End: 2020-12-31.
What is the justification for the sole-source award, and has it been adequately documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Adequate documentation is essential to ensure the government received the best possible value under the circumstances. Without this documentation, it's difficult to assess the necessity of bypassing competitive procedures.
How does the per-unit cost of these engines compare to commercially available or previously contracted engines?
Benchmarking the per-unit cost against similar commercial engines or previous government contracts is vital. A lack of competition makes it harder to establish a fair price. If this contract's pricing is significantly higher than benchmarks, it indicates potential overspending and a need for closer scrutiny on future sole-source awards.
What is the long-term strategy for sourcing these critical aircraft engine parts to ensure future cost-effectiveness and availability?
A long-term strategy should explore options for fostering competition, such as encouraging new entrants or developing alternative engine technologies. Relying on sole-source awards for extended periods can lead to escalating costs and supply chain vulnerabilities. Proactive planning is key to mitigating these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $231,225,163
Exercised Options: $231,225,163
Current Obligation: $194,525,281
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038317DBG01
IDV Type: IDC
Timeline
Start Date: 2020-02-01
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2025-04-24
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