DoD's $137.5M Contract for Aviation and Missile Command Logistics Support Services Awarded to General Electric
Contract Overview
Contract Amount: $1,627,302,171 ($1.6B)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2005-12-15
End Date: 2018-06-30
Contract Duration: 4,580 days
Daily Burn Rate: $355.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!001069!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !1 NEUMANN WAY !CINCINNATI !OH!45215!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000177879422!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !A1B!AIRCRAFT ENGINES AND SPARES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $1.63 billion to GENERAL ELECTRIC COMPANY for work described as: 200608!001069!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !1 NEUMANN WAY !CINCINNATI !OH!45215!15000!061!39!CINCINNATI !HAMI… Key points: 1. The contract, valued at $137,488,664, is for logistics support services related to aircraft engines and spares. 2. Awarded to General Electric Company, this contract highlights a significant sole-source relationship for critical aviation components. 3. The duration of the contract is substantial, spanning from December 15, 2005, to June 30, 2018, indicating long-term reliance. 4. The primary sector is IT/Engineering Services, with a specific focus on aircraft engines and spares, suggesting specialized technical requirements.
Value Assessment
Rating: fair
The contract value of $137.5M over approximately 12.5 years suggests an average annual value of around $11M. Without specific benchmarks for similar logistics support for complex aircraft engines, a precise pricing assessment is difficult. However, the long duration and sole-source nature warrant scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition for this substantial contract may result in the government paying a premium, impacting taxpayer value.
Public Impact
Ensures continued operational readiness for critical military aircraft by providing essential logistics support for engines and spares. Supports a major defense contractor, General Electric, contributing to jobs and economic activity within the aerospace and defense sector. Highlights the government's reliance on specialized, long-term support contracts for complex military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may indicate potential for cost overruns or lack of innovation.
- Lack of detailed breakdown for 'logistics support services' makes precise value assessment challenging.
Positive Signals
- Ensures critical operational capability for aviation assets.
- Supports a key domestic manufacturer in a strategic industry.
- Provides stability for essential maintenance and supply chain operations.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330) and specifically relates to aircraft engines and spares, a critical component of the defense sector. Spending benchmarks for such specialized, long-term logistics support are highly variable and depend on the specific aircraft platforms and engine types involved.
Small Business Impact
The contract was awarded to General Electric Company, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and effective service delivery. Accountability would focus on performance metrics and adherence to contract terms, especially given the extended duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Lack of detailed service breakdown hinders value assessment.
- Long contract duration (over 12 years) increases risk of price escalation.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, oh, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.63 billion to GENERAL ELECTRIC COMPANY. 200608!001069!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0038 !A!N! !Y! ! !20051215!20101231!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !1 NEUMANN WAY !CINCINNATI !OH!45215!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000177879422!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !A1B!AIRCRAFT ENGINES AND SPARES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !999
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 Army).
What is the total obligated amount?
The obligated amount is $1.63 billion.
What is the period of performance?
Start: 2005-12-15. End: 2018-06-30.
What specific logistics support services are included in this contract, and how are they priced?
The contract specifies 'Logistics Support Services' for aircraft engines and spares. However, the data does not detail the specific services (e.g., maintenance, repair, overhaul, spare parts provisioning, technical support). Pricing is a firm fixed price, but without a detailed breakdown of service components, it's difficult to assess if the price is competitive or justified.
What is the justification for awarding this contract on a sole-source basis, and what efforts were made to explore competitive alternatives?
The data indicates the contract was 'NOT COMPETED' and is 'sole-source'. The specific justification (e.g., unique capabilities, urgency, lack of viable alternatives) is not provided. Without this information, it's impossible to assess if competitive alternatives were adequately explored or if the sole-source decision was fully warranted.
How does the performance of General Electric under this contract align with the government's objectives for maintaining aviation readiness and cost-effectiveness?
The provided data does not include performance metrics or feedback on General Electric's execution of this contract. Assessing alignment with government objectives would require reviewing performance reports, delivery schedules, quality assessments, and any cost-saving initiatives or overruns experienced during the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2005-12-15
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-07-02
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