DoD's Navy Awards $209M Firm Fixed Price Contract for F414 Engine Parts to General Electric
Contract Overview
Contract Amount: $209,190,241 ($209.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2024-12-31
Contract Duration: 365 days
Daily Burn Rate: $573.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 FS DELIVERY ORDER JAN 2024 - DEC 2024
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $209.2 million to GENERAL ELECTRIC COMPANY for work described as: F414 FS DELIVERY ORDER JAN 2024 - DEC 2024 Key points: 1. Significant contract value of over $209 million for aircraft engine parts. 2. Sole-source award to General Electric Company, raising questions about competition. 3. Risk of higher costs due to lack of competitive bidding. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract is firm fixed price, which offers some cost certainty. However, without competition, it's difficult to assess if the pricing is optimal compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Electric Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical aircraft engine parts.
Public Impact
Ensures continued supply of essential aircraft engine parts for naval operations. Potential for increased defense spending without competitive pressure. Impacts the supply chain for a key defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Firm fixed price contract type
- Ensures critical part availability
Sector Analysis
This contract is within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar sole-source awards in this sector are often higher due to specialized manufacturing requirements and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, and there is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
While the contract is firm fixed price, the sole-source nature warrants close oversight to ensure the pricing remains reasonable and that future opportunities for competition are explored.
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 above-market pricing.
- Dependency on a single supplier.
- Lack of transparency in price justification.
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 $209.2 million to GENERAL ELECTRIC COMPANY. F414 FS DELIVERY ORDER JAN 2024 - DEC 2024
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 $209.2 million.
What is the period of performance?
Start: 2024-01-01. End: 2024-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. Agencies should provide detailed documentation for such decisions. To ensure fair pricing, agencies often conduct market research, benchmark against historical data, and negotiate aggressively, even in sole-source situations. Independent cost estimates can also be used to validate proposed prices.
What are the long-term risks associated with relying on a single supplier for critical aircraft engine parts?
Long-term reliance on a single supplier for critical components like aircraft engine parts poses several risks. These include vulnerability to supply chain disruptions, potential for price escalation without competitive pressure, and reduced innovation as the supplier faces less incentive to improve products or processes. It can also limit the government's flexibility in adapting to new technologies or alternative solutions.
How does this contract contribute to the overall readiness and operational effectiveness of naval aviation assets?
This contract directly supports naval aviation readiness by ensuring the availability of necessary F414 engine parts. The F414 engine powers several key Navy fighter aircraft. Consistent and timely access to these parts is crucial for maintaining aircraft serviceability, minimizing downtime, and ensuring that naval forces have the operational capability required for their missions.
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: $209,190,241
Exercised Options: $209,190,241
Current Obligation: $209,190,241
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038323DDM01
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2024-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-08-25
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