DoD awards $30.3M for aircraft parts, with Boeing securing the contract under full and open competition

Contract Overview

Contract Amount: $30,274,701 ($30.3M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-11-30

End Date: 2012-01-22

Contract Duration: 418 days

Daily Burn Rate: $72.4K/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

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $30.3 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: OTHER AIRCRAFT PART AND AUXILIARY EQUIPMENT MANUFACTURING Key points: 1. Contract value represents a significant investment in specialized aircraft components. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 418 days indicates a medium-term need for these parts. 4. Fixed-price contract type aims to control costs for the government. 5. The award to a major aerospace manufacturer highlights industry concentration. 6. Geographic location of performance in Texas may have local economic implications.

Value Assessment

Rating: good

The contract value of $30.3 million for aircraft parts appears reasonable given the specialized nature of the industry. Benchmarking against similar contracts for aircraft components is challenging without more specific details on the exact parts and quantities. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award to a large, established contractor like Boeing Aerospace Operations, Inc. often implies a certain level of quality and reliability, though it may not always represent the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, the exact number (3) doesn't necessarily guarantee the most aggressive pricing. The government likely received multiple proposals, allowing for comparison and selection of the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently, as contractors vied to offer the most attractive terms.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential aircraft parts. The contract supports the maintenance and operational readiness of military aircraft. The geographic impact is concentrated in Texas, where the contractor is located. The contract likely supports a workforce skilled in aerospace manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to fixed-price contract and established contractor.
Reliance on a single large contractor could pose supply chain risks.
Lack of specific performance metrics makes it difficult to assess efficiency.

Positive Signals

Awarded under full and open competition, indicating a fair bidding process.
Firm fixed-price contract provides cost certainty for the government.
Contractor is a well-established entity with significant aerospace experience.

Sector Analysis

The "Other Aircraft Parts and Auxiliary Equipment Manufacturing" sector (NAICS 336413) is a critical component of the broader aerospace industry. This sector encompasses the production of a wide array of specialized parts, not including engines or airframes themselves. The total contract value of $30.3 million falls within the typical range for government procurements in this category, which can vary significantly based on the complexity and volume of parts required. The market is often characterized by a mix of large, established players like Boeing and smaller, specialized suppliers.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Boeing Aerospace Operations, Inc., a large corporation, suggests that small businesses were likely not the primary focus for this specific prime contract. However, it is possible that Boeing may engage small businesses as subcontractors to fulfill parts of this contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and specifications. The firm fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is facilitated through contract databases, but detailed operational oversight information is generally not publicly available.

Related Government Programs

Aircraft Component Procurement
Defense Logistics Support
Aerospace Manufacturing Contracts
Military Aircraft Maintenance

Risk Flags

Potential for supply chain disruption
Quality control adherence
Delivery schedule compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.3 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 $30.3 million.

What is the period of performance?

Start: 2010-11-30. End: 2012-01-22.

What specific types of aircraft parts were procured under this contract?

The provided data indicates the contract falls under NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' This broad category encompasses a wide range of components, excluding complete engines or airframes. Examples could include landing gear components, hydraulic systems parts, electrical harnesses, structural elements, or specialized electronic equipment. Without further details specific to this contract award, pinpointing the exact nature of the parts is not possible. However, the significant value suggests these are likely critical or high-volume components essential for the operational readiness of military aircraft.

How does the awarded amount of $30.3 million compare to historical spending on similar aircraft parts by the Department of Defense?

Comparing this $30.3 million award to historical spending requires access to detailed historical procurement data for specific aircraft parts or categories. The Department of Defense procures a vast array of aircraft parts annually, with spending fluctuating based on fleet readiness needs, modernization programs, and the lifecycle of various aircraft platforms. While $30.3 million is a substantial sum, it represents a fraction of the DoD's overall annual budget for aircraft maintenance and sustainment. To provide a precise comparison, one would need to identify comparable contracts awarded over previous years for similar parts, considering factors like inflation, quantity, and technological advancements.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided summary data does not specify the key performance indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for contracts involving the manufacturing and delivery of parts, KPIs would focus on aspects such as on-time delivery rates, adherence to quality specifications (e.g., defect rates, compliance with technical drawings), and potentially cost performance against the fixed-price agreement. The Defense Contract Management Agency (DCMA) would likely be involved in monitoring these aspects. However, the specific metrics are usually detailed within the contract's statement of work and are not publicly disclosed in summary data.

What is the track record of Boeing Aerospace Operations, Inc. in fulfilling similar defense contracts for aircraft parts?

Boeing Aerospace Operations, Inc. has an extensive and long-standing track record of fulfilling defense contracts for a wide array of aircraft parts and related services for the Department of Defense and other government agencies. As a major prime contractor in the aerospace industry, Boeing routinely handles large-scale procurements involving complex manufacturing, integration, and sustainment activities. Their history includes delivering components for numerous military aircraft platforms. While specific performance details for every contract are not always public, Boeing's continued success in securing significant defense contracts suggests a generally reliable performance history in meeting government requirements for quality, delivery, and technical specifications.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks associated with this contract could include supply chain disruptions, quality control issues with the manufactured parts, or potential cost overruns if unforeseen technical challenges arise (though mitigated by the fixed-price structure). Delays in delivery could impact aircraft readiness. Mitigation strategies typically involve robust quality assurance processes by the contractor, oversight from the DCMA, and clear contractual terms defining acceptable quality and delivery schedules. The government also benefits from having multiple bidders, which can incentivize performance. However, the specific risk mitigation plans are usually internal to the contract.

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, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,709,211

Exercised Options: $30,274,701

Current Obligation: $30,274,701

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810507D0002

IDV Type: IDC

Timeline