DoD Awards $9.7M for T-AKE Class Tech Refresh Services to GE Energy Power Conversion USA Inc
Contract Overview
Contract Amount: $9,720,136 ($9.7M)
Contractor: GE Energy Power Conversion USA Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2027-01-29
Contract Duration: 854 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: N102C/N7/K. BROOKS/T-AKE CLASS TECH REFRESH PHASE 2 SERVICES
Place of Performance
Location: IMPERIAL, ALLEGHENY County, PENNSYLVANIA, 15126
Plain-Language Summary
Department of Defense obligated $9.7 million to GE ENERGY POWER CONVERSION USA INC. for work described as: N102C/N7/K. BROOKS/T-AKE CLASS TECH REFRESH PHASE 2 SERVICES Key points: 1. Contract awarded for technical refresh services on T-AKE class ships. 2. GE Energy Power Conversion USA Inc. is the sole awardee. 3. The contract is a firm-fixed-price delivery order. 4. Services are for engineering and technical support. 5. The contract duration is 854 days.
Value Assessment
Rating: fair
The award amount of $9.7 million for engineering services appears reasonable for a specialized technical refresh. However, without specific benchmarks for T-AKE class modernization, a direct comparison is difficult. The firm-fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to higher costs for taxpayers compared to a fully competed contract.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued operational readiness of T-AKE class logistics ships. Supports critical technology upgrades for naval platforms. Impacts the efficiency and effectiveness of naval supply chains. Potential for increased long-term maintenance costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Limited transparency on the justification for sole-source procurement.
Positive Signals
- Addresses critical technology refresh needs for naval assets.
- Ensures continued support for important military platforms.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330) within the Department of Defense. Spending in this sector is substantial, often driven by complex defense systems and modernization efforts. Benchmarks vary widely based on the specific engineering discipline and project scope.
Small Business Impact
The contract was awarded to GE Energy Power Conversion USA Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for highly specialized sole-source procurements.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The justification for a sole-source award should be thoroughly documented and reviewed to ensure it aligns with federal procurement regulations and serves the best interest of the government.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- Sole-source justification review needed
Tags
engineering-services, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to GE ENERGY POWER CONVERSION USA INC.. N102C/N7/K. BROOKS/T-AKE CLASS TECH REFRESH PHASE 2 SERVICES
Who is the contractor on this award?
The obligated recipient is GE ENERGY POWER CONVERSION USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.7 million.
What is the period of performance?
Start: 2024-09-27. End: 2027-01-29.
What is the specific technical justification for awarding this contract sole-source, and has it been adequately documented?
The provided data does not include the specific justification for the sole-source award. Federal regulations typically require detailed documentation for sole-source procurements, outlining why competition is not feasible or advantageous. This justification should be reviewed by contracting officers and potentially higher authorities to ensure compliance and prevent unnecessary costs.
How does the cost of this sole-source contract compare to similar T-AKE class modernization efforts that may have been competed?
Direct cost comparison is challenging without access to historical data on competed T-AKE class modernization projects. Sole-source contracts inherently lack the price discovery mechanism of competition. Therefore, it is presumed that this contract may be more expensive than a competitively awarded one, highlighting the importance of robust justification for sole-source awards.
What are the long-term implications for the T-AKE class platform's lifecycle cost given this sole-source award?
A sole-source award can lead to higher long-term lifecycle costs if the awarded vendor does not face competitive pressure to innovate or offer cost efficiencies in future support or upgrades. This could necessitate future sole-source contracts, potentially increasing overall sustainment expenses for the T-AKE class.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N3220521R4113
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101 N CAMPUS DR, IMPERIAL, PA, 15126
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,720,136
Exercised Options: $9,720,136
Current Obligation: $9,720,136
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,402,870
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3220521D4113
IDV Type: IDC
Timeline
Start Date: 2024-09-27
Current End Date: 2027-01-29
Potential End Date: 2027-01-29 00:00:00
Last Modified: 2025-12-23
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