Navy Aviation Contract Awarded to Boeing for $34.3M for Navigation Systems

Contract Overview

Contract Amount: $34,341,728 ($34.3M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2014-07-30

End Date: 2022-06-30

Contract Duration: 2,892 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVY AVIATION

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $34.3 million to THE BOEING COMPANY (0674) for work described as: NAVY AVIATION Key points: 1. The contract is for a significant amount, $34.3 million, for critical aviation systems. 2. Boeing is a major defense contractor, indicating a competitive landscape for large-scale defense procurements. 3. The contract type (FIRM FIXED PRICE) aims to control costs, but the duration (2892 days) presents potential for cost escalation if not managed. 4. The sector is IT/Defense, specifically focusing on advanced navigation and guidance systems.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests an effort to establish a clear cost baseline. However, the long duration of nearly 8 years warrants scrutiny to ensure the price remains competitive throughout the period, especially considering potential technological advancements or market shifts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may lead to higher prices compared to full and open competition, as fewer potential bidders were considered.

Taxpayer Impact: The limited competition raises concerns about optimal taxpayer value. While Boeing is a capable provider, exploring broader competition could potentially yield more cost-effective solutions.

Public Impact

Ensures continued operational capability for Navy aviation through advanced navigation and guidance systems. Supports a major defense contractor, contributing to the defense industrial base. The long-term nature of the contract implies sustained investment in critical military technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Long contract duration increases risk of cost overruns or obsolescence.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract type helps control costs.
Award to a reputable and experienced contractor.
Supports critical national defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically IT and advanced manufacturing for aeronautical systems. Spending in this area is typically high due to the complexity and critical nature of military technology, with benchmarks often set by large, sole-source or limited-competition awards to prime contractors.

Small Business Impact

The data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that the primary contractor, Boeing, likely handled the majority of the work, with potential for subcontracting opportunities that are not detailed here.

Oversight & Accountability

The contract's long duration and limited competition necessitate robust oversight to ensure performance, cost control, and adherence to contract terms. Regular reviews and performance monitoring are crucial for accountability.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Long contract duration increases risk of cost escalation and technological obsolescence.
Lack of small business participation noted.
Potential for scope creep over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 million to THE BOEING COMPANY (0674). NAVY AVIATION

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY (0674).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $34.3 million.

What is the period of performance?

Start: 2014-07-30. End: 2022-06-30.

What specific navigation, detection, guidance, and control systems are being procured under this contract, and how do they compare to current commercial or allied military standards?

The contract details are for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' Without specific system names, a direct comparison is difficult. However, given the award to Boeing and the 'limited competition' aspect, these are likely specialized, high-performance systems tailored for advanced Navy aviation platforms. Benchmarking against commercial standards is often not feasible due to unique military requirements, but comparison with allied military systems could reveal potential for interoperability or cost efficiencies.

Given the 'limited competition' and the long contract duration, what mechanisms are in place to mitigate the risk of cost overruns and ensure continued technological relevance?

The 'FIRM FIXED PRICE' contract type is a primary mechanism to cap costs. However, for a nearly 8-year duration, the agency must implement stringent contract management, including regular performance reviews, change order controls, and potentially incorporating clauses for price adjustments based on objective economic indicators. Proactive technology insertion strategies and regular market surveillance are also vital to ensure the systems remain relevant and avoid obsolescence.

How does the $34.3 million expenditure for these systems align with broader Navy aviation modernization goals and overall defense spending priorities?

This $34.3 million award represents a specific investment in critical navigation and guidance systems for Navy aviation. Its alignment depends on the strategic importance of these systems to current and future fleet readiness and modernization plans. Without context on the total Navy aviation budget or specific modernization roadmaps, it's hard to definitively assess alignment. However, such procurements are generally indicative of ongoing efforts to maintain and upgrade the technological edge of naval air assets.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company

Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,341,728

Exercised Options: $34,341,728

Current Obligation: $34,341,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038307D001J

IDV Type: IDC

Timeline