DoD awards Boeing $81.5M for Other Aircraft Parts, citing 'Not Competed' award
Contract Overview
Contract Amount: $81,486,589 ($81.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-10-31
End Date: 2010-12-31
Contract Duration: 791 days
Daily Burn Rate: $103.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: FUNDING MOD.
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67210, UNITED STATES OF AMERICA
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $81.5 million to THE BOEING COMPANY for work described as: FUNDING MOD. Key points: 1. Significant award to a major defense contractor, The Boeing Company. 2. Focus on aircraft parts manufacturing, a critical defense sector. 3. Award method raises questions about competition and potential price discovery. 4. Long contract duration (791 days) suggests a substantial project.
Value Assessment
Rating: questionable
The award value of $81.5M for aircraft parts is substantial. Without specific unit details or comparison data, it's difficult to assess value for money. The 'Cost No Fee' contract type suggests the government bears the cost risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Ensures supply of critical aircraft parts for defense operations. Supports a major aerospace manufacturer and its supply chain. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type (Cost No Fee)
- Long contract duration
Positive Signals
- Award to established prime contractor
- Supports critical defense needs
Sector Analysis
This award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a key component of the aerospace and defense industry. Spending in this area is vital for maintaining military readiness.
Small Business Impact
The data indicates this award went to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants scrutiny. Further oversight is needed to understand the justification for bypassing competition and to ensure fair pricing and accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in justification
- Potential for inflated costs
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ks, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.5 million to THE BOEING COMPANY. FUNDING MOD.
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $81.5 million.
What is the period of performance?
Start: 2008-10-31. End: 2010-12-31.
What was the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's impossible to determine the precise reason. However, such awards necessitate rigorous justification to ensure taxpayer funds are used appropriately and that competition is only bypassed when absolutely necessary.
How does the 'Cost No Fee' contract type impact the government's risk and potential for cost overruns?
A 'Cost No Fee' contract means the government reimburses the contractor for all allowable costs but does not pay any profit or fee. This shifts the financial risk heavily onto the government, as the contractor has less incentive to control costs. It is often used when the scope of work is uncertain or when the contractor has minimal control over costs.
What is the benchmark pricing for similar aircraft parts contracts awarded competitively?
Benchmarking pricing for 'Other Aircraft Parts' is complex due to the vast range of components and specifications. Competitive contracts for similar, high-volume parts might yield lower per-unit costs. However, specialized or low-volume parts, especially those requiring specific certifications or proprietary technology, can command higher prices even in competitive bids.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 4615 SOUTH OLIVER, WICHITA, KS, 67210
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $117,678,589
Exercised Options: $117,678,589
Current Obligation: $81,486,589
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810606D0001
IDV Type: IDC
Timeline
Start Date: 2008-10-31
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2016-02-17
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)