DoD awards $43.1M for aircraft parts, with Boeing as sole contractor under full and open competition
Contract Overview
Contract Amount: $43,104,125 ($43.1M)
Contractor: Boeing Aerospace Operations, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-10-28
End Date: 2012-02-08
Contract Duration: 468 days
Daily Burn Rate: $92.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $43.1 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING Key points: 1. Significant contract value of $43.1 million awarded. 2. Boeing Aerospace Operations, Inc. is the sole contractor. 3. Contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 4. Firm Fixed Price contract type suggests price certainty.
Value Assessment
Rating: fair
The contract value of $43.1 million for aircraft parts needs comparison against similar DoD contracts for similar parts to assess value. Without specific part details, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, Boeing is listed as the sole awardee, which warrants further investigation into the bidding outcomes and potential reasons for single-bidder success.
Taxpayer Impact: The firm fixed price contract aims to control costs, but the ultimate taxpayer impact depends on the competitiveness of the bids received and the necessity of the parts procured.
Public Impact
Ensures supply of critical aircraft parts for defense operations. Supports a major aerospace manufacturer, potentially impacting jobs. Contract duration of 468 days indicates a medium-term supply need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite full and open competition.
- Lack of specific part details hinders value assessment.
Positive Signals
- Firm fixed price contract type.
- Awarded under full and open competition.
Sector Analysis
This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is generally high due to the complex and specialized nature of aerospace components.
Small Business Impact
The data indicates no specific set-aside for small businesses. The prime contractor, Boeing, is a large corporation, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency, implying standard oversight procedures. Further review of contract performance reports would be needed to assess accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential lack of true competition despite designation.
- Lack of specific itemization for value assessment.
- No small business participation noted.
- Contract awarded to a single large entity.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.1 million to BOEING AEROSPACE OPERATIONS, INC.. OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING
Who is the contractor on this award?
The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $43.1 million.
What is the period of performance?
Start: 2010-10-28. End: 2012-02-08.
What specific aircraft parts were procured under this contract, and how do their prices compare to market rates or previous contracts for similar items?
The provided data does not specify the exact aircraft parts. To assess value, a detailed breakdown of the procured items is necessary. Comparing unit costs against industry benchmarks or historical pricing for identical or comparable parts would reveal if the $43.1 million award represents a fair market price.
Given the 'full and open competition' designation, why was Boeing the sole awardee, and were there any barriers to entry for other potential bidders?
While designated 'full and open,' the sole award to Boeing suggests that either only Boeing submitted a bid, or its bid was the only one deemed acceptable. Potential reasons could include highly specialized requirements, proprietary technology, or a lack of competitive interest from other manufacturers for this specific set of parts.
What is the strategic importance of these specific aircraft parts to the Department of Defense's operational readiness?
The strategic importance hinges on the criticality of the parts to maintaining the operational readiness of specific aircraft platforms. If these are essential components for aging or high-demand aircraft, ensuring a stable supply chain through contracts like this is vital for national security and mission effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 375 AIRLIFT DR SECOND FL C43, SAN ANTONIO, TX, 78226
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,104,125
Exercised Options: $43,104,125
Current Obligation: $43,104,125
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810507D0002
IDV Type: IDC
Timeline
Start Date: 2010-10-28
Current End Date: 2012-02-08
Potential End Date: 2012-02-08 00:00:00
Last Modified: 2015-02-25
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