Navy Awards $211M for F414 Engine Parts to General Electric, Lacking Competition
Contract Overview
Contract Amount: $211,173,099 ($211.2M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2026-01-06
End Date: 2026-08-31
Contract Duration: 237 days
Daily Burn Rate: $891.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F414 DC PBL JAN-AUG 2026 (8 MO PAYMENT) Y-PR - N0038326Y4917ERP PR - 1700085305 VALUE - $211,173,098.88
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Defense obligated $211.2 million to GENERAL ELECTRIC COMPANY for work described as: F414 DC PBL JAN-AUG 2026 (8 MO PAYMENT) Y-PR - N0038326Y4917ERP PR - 1700085305 VALUE - $211,173,098.88 Key points: 1. The contract is for F414 DC PBL parts for an 8-month period. 2. General Electric Company is the sole awardee, raising concerns about competition. 3. The firm fixed price contract aims to control costs for aircraft engine parts. 4. This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $211,173,098.88 for 8 months of engine parts appears substantial. Benchmarking against similar sole-source or limited-competition contracts for specialized aircraft components would be necessary to fully assess pricing fairness.
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. The lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may bear higher costs due to the absence of competitive bidding, as the government relies on a single supplier.
Public Impact
Ensures continued readiness for Navy aircraft by providing essential engine parts. Supports a major defense contractor, potentially impacting employment in related manufacturing. Highlights potential vulnerabilities in the supply chain for critical defense components. Raises questions about the long-term strategy for acquiring specialized aerospace parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Ensures availability of critical engine parts
- Firm fixed price contract structure
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a critical area for defense readiness. Spending in this sector is often characterized by high barriers to entry and specialized production, frequently leading to limited competition.
Small Business Impact
The awardee is General Electric Company, a large corporation. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight should focus on ensuring the necessity of a sole-source award and scrutinizing the pricing to mitigate taxpayer risk.
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 higher costs due to lack of bidding.
- Dependence on a single supplier for critical parts.
- Limited transparency on pricing 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 $211.2 million to GENERAL ELECTRIC COMPANY. F414 DC PBL JAN-AUG 2026 (8 MO PAYMENT) Y-PR - N0038326Y4917ERP PR - 1700085305 VALUE - $211,173,098.88
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 $211.2 million.
What is the period of performance?
Start: 2026-01-06. End: 2026-08-31.
What is the justification for awarding this contract on a sole-source basis, and have alternative sourcing strategies been fully explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of viable alternatives. The Department of the Navy should provide detailed documentation outlining why competition was not feasible for these F414 DC PBL parts. Thorough market research and exploration of potential alternative suppliers or sustainment strategies are crucial to ensure the government is not unnecessarily limiting its options and potentially overpaying.
How does the per-unit cost of these F414 engine parts compare to historical data or industry benchmarks, especially given the lack of competition?
Without specific per-unit cost data and comparable benchmarks, it's difficult to definitively assess value. However, the absence of competition inherently increases the risk of inflated pricing. The Navy should conduct rigorous price analysis, comparing the proposed costs against previous contracts for similar parts, available commercial price lists (if applicable), and independent cost estimates to ensure the $211 million expenditure represents fair and reasonable pricing.
What is the long-term strategy for ensuring competitive sourcing or mitigating risks associated with sole-source procurement of critical aircraft engine components?
The long-term strategy should involve proactive measures to foster competition or reduce reliance on single sources for critical components like F414 engine parts. This could include investing in research and development for alternative technologies, encouraging new market entrants, or exploring public-private partnerships. Regular reviews of the sole-source justification and active market surveillance are essential to identify opportunities for future competition and ensure sustained cost-effectiveness and supply chain resilience.
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: $211,173,099
Exercised Options: $211,173,099
Current Obligation: $211,173,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038321DZN01
IDV Type: IDC
Timeline
Start Date: 2026-01-06
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2026-01-06
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