DoD awards $208M for F414 engine parts, extending fleet support into 2026
Contract Overview
Contract Amount: $208,400,000 ($208.4M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-12-11
End Date: 2026-12-31
Contract Duration: 385 days
Daily Burn Rate: $541.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS FOR POP 5 PURSUANT TO THE F414 FLEET SUPPORT PBL CONTRACT N0038323DDM01. PERFORMANCE IS FOR CY26: 1 JAN 2026 - 31 DEC 2026; ERP PR# 1700085190
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $208.4 million to GENERAL ELECTRIC COMPANY for work described as: THIS DELIVERY ORDER IS FOR POP 5 PURSUANT TO THE F414 FLEET SUPPORT PBL CONTRACT N0038323DDM01. PERFORMANCE IS FOR CY26: 1 JAN 2026 - 31 DEC 2026; ERP PR# 1700085190 Key points: 1. This delivery order represents a significant investment in maintaining critical aircraft engine readiness. 2. The contract is structured as Firm Fixed Price, aiming to control costs for the specified performance period. 3. Performance is scheduled for Calendar Year 2026, indicating a focus on near-term operational support. 4. The award falls under a broader Performance-Based Logistics (PBL) contract, suggesting a long-term support strategy. 5. The specific NAICS code points to the manufacturing of aircraft engines and engine parts. 6. The contract is not competed, raising questions about potential cost efficiencies and market alternatives.
Value Assessment
Rating: questionable
The total award amount of $208.4 million for a one-year period of performance (CY26) for F414 fleet support is substantial. Without direct comparable data for this specific PBL contract's delivery orders, it's difficult to benchmark value precisely. However, the 'NOT COMPETED' status suggests a lack of price discovery, which could lead to less favorable pricing than a competed scenario. The firm fixed price structure provides cost certainty for the government, but the absence of competition is a primary concern for value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, indicating it was awarded under a sole-source basis. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the incumbent under a pre-existing contract vehicle. The lack of competition means that alternative suppliers were not considered, potentially limiting the government's ability to secure the best possible pricing and terms through market forces.
Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a competitive bidding process. This could result in higher overall spending for essential aircraft engine support.
Public Impact
The primary beneficiaries are the Department of the Navy, ensuring the operational readiness of its F414-powered aircraft fleet. Services delivered include the provision of critical aircraft engine parts and associated support for Calendar Year 2026. The geographic impact is primarily related to the operational bases where these aircraft are deployed, both domestically and internationally. Workforce implications may include continued employment for personnel involved in the manufacturing, logistics, and support of these engine components at the contractor's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits price discovery and potential cost savings for taxpayers.
- Sole-source awards can create contractor dependency and reduce future competitive options.
- The substantial dollar amount warrants close scrutiny of performance and cost justification.
- Reliance on a single source for critical engine parts could pose supply chain risks.
Positive Signals
- The award supports the sustainment of a critical military asset, ensuring fleet readiness.
- Firm Fixed Price contract type provides cost certainty for the government.
- Performance-Based Logistics (PBL) approach suggests a focus on long-term, outcome-based support.
- The contractor, General Electric Company, is a known entity with established expertise in aircraft engines.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector (NAICS 336412). This industry is characterized by high barriers to entry due to complex technology, significant R&D investment, and stringent quality control requirements. The market is dominated by a few large, specialized manufacturers. Spending in this sector is heavily influenced by defense procurement cycles and the operational tempo of military aviation. Comparable spending benchmarks would typically involve other engine support contracts for similar military platforms.
Small Business Impact
The data indicates this contract was not competed and the small business (SB) flag is false, suggesting no specific small business set-aside was applied to this particular delivery order. Furthermore, the prime contractor is General Electric Company, a large business. There is no explicit information on subcontracting plans for small businesses within this specific award, though large defense contracts often include subcontracting goals. The impact on the small business ecosystem is therefore indirect, potentially through GE's broader supply chain requirements.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy contracting and program management offices. As a delivery order under a larger PBL contract, existing oversight mechanisms for that contract would apply. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- F414 Engine Support Contracts
- Naval Aviation Readiness Programs
- Defense Logistics Agency (DLA) Aviation Support
- Aircraft Engine Manufacturing and Maintenance
- Performance-Based Logistics (PBL) Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to lack of market competition.
- Dependency on a single contractor for critical components.
- Limited transparency into detailed cost breakdowns.
Tags
defense, department-of-defense, department-of-the-navy, aircraft-engine-parts, manufacturing, sole-source, firm-fixed-price, delivery-order, performance-based-logistics, f414-engine, massachusetts, cy26
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $208.4 million to GENERAL ELECTRIC COMPANY. THIS DELIVERY ORDER IS FOR POP 5 PURSUANT TO THE F414 FLEET SUPPORT PBL CONTRACT N0038323DDM01. PERFORMANCE IS FOR CY26: 1 JAN 2026 - 31 DEC 2026; ERP PR# 1700085190
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 $208.4 million.
What is the period of performance?
Start: 2025-12-11. End: 2026-12-31.
What is the historical spending trend for F414 engine support under the parent PBL contract?
To assess the historical spending trend, one would need to examine the parent PBL contract (N0038323DDM01) and all its preceding delivery orders. This would involve analyzing annual spending, the number and value of delivery orders issued, and whether spending has been consistent or fluctuating. A consistent upward trend might indicate increasing maintenance needs or inflation, while significant spikes could correlate with specific fleet upgrades or unforeseen issues. Without access to the full contract history, it's impossible to provide specific figures, but understanding this trend is crucial for forecasting future budgetary needs and identifying potential cost efficiencies or escalating support costs over time.
How does the unit cost of parts or services under this delivery order compare to industry benchmarks or previous orders?
Benchmarking the unit cost requires detailed data on the specific parts or services procured under this $208.4 million delivery order and comparing them against established industry standards for similar F414 engine components or against historical pricing from previous delivery orders under the same PBL contract. Given this is a sole-source award, direct comparison to market rates might be challenging. However, internal government cost analysis or comparisons with pricing for engines on similar platforms could provide insights. A significant deviation from historical averages or industry norms, especially without clear justification (like technological advancements or inflation), would raise concerns about value for money and potentially indicate overpricing.
What are the key performance indicators (KPIs) associated with this Performance-Based Logistics (PBL) contract, and how is General Electric Company performing against them?
Performance-Based Logistics (PBL) contracts are designed around achieving specific outcomes or performance levels rather than just delivering goods or services. Key Performance Indicators (KPIs) for F414 engine support might include metrics such as engine availability rates, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), supply chain responsiveness, and parts obsolescence management. The Department of the Navy would track GE's performance against these pre-defined KPIs. Consistent achievement of these targets would indicate good value and effective support. Failure to meet KPIs could trigger contractual remedies, incentives, or penalties, and would be a significant concern regarding the contractor's ability to deliver the promised support effectively.
What is the risk associated with sole-sourcing critical aircraft engine components from a single supplier like General Electric?
Sole-sourcing critical aircraft engine components from a single supplier like General Electric presents several risks. Firstly, it creates a dependency, making the Department of the Navy vulnerable to supply chain disruptions originating from GE's operations, labor issues, or geopolitical factors affecting their facilities. Secondly, the lack of competition can reduce the incentive for the contractor to innovate or offer cost reductions, potentially leading to higher long-term costs. Thirdly, it limits the government's flexibility to switch suppliers if performance issues arise or if a more cost-effective alternative emerges. This risk is partially mitigated by the long-standing nature of the relationship and GE's specialized expertise, but it remains a strategic consideration for fleet readiness and budget management.
What is the projected sustainment cost for the F414 engine fleet beyond 2026, and how does this award fit into that projection?
Projecting sustainment costs for military assets like the F414 engine fleet involves complex modeling that considers factors such as projected flight hours, anticipated component lifecycles, planned upgrades, inflation rates, and potential technological obsolescence. This $208.4 million delivery order for CY26 represents a specific, near-term component of that larger sustainment cost. Understanding how this award aligns with broader, multi-year sustainment cost projections is crucial for budget planning and resource allocation. If this award significantly exceeds projections or if the underlying PBL contract is structured to escalate costs rapidly, it could indicate a need to re-evaluate long-term sustainment strategies or explore alternative support models to manage future expenditures effectively.
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: $208,400,000
Exercised Options: $208,400,000
Current Obligation: $208,400,000
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: 2025-12-11
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-11
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