DoD awards Boeing $90.8M for aircraft parts, contract established in 2009
Contract Overview
Contract Amount: $90,851,571 ($90.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-10-30
End Date: 2011-12-31
Contract Duration: 792 days
Daily Burn Rate: $114.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS MOD IS TO ESTABLISH CLIN 3002 AND TO ESTABLISH AND FUND CLINS 3002AA AND 3002AB.
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67210, UNITED STATES OF AMERICA
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $90.9 million to THE BOEING COMPANY for work described as: THE PURPOSE OF THIS MOD IS TO ESTABLISH CLIN 3002 AND TO ESTABLISH AND FUND CLINS 3002AA AND 3002AB. Key points: 1. Significant award to a major defense contractor. 2. Contract established over a decade ago, potentially impacting current pricing. 3. Lack of competition raises concerns about price discovery. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which offers less incentive for cost control compared to fixed-price contracts. The total award amount is substantial, but without a clear baseline or comparison, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition can lead to higher prices as there is no market pressure to ensure cost-effectiveness.
Taxpayer Impact: The absence of competition may have resulted in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may have overpaid due to a lack of competitive bidding. Long-standing contract (established 2009) may not reflect current market conditions. Reliance on a single large contractor for critical aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Award to established defense contractor
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific part comparisons.
Small Business Impact
The awardee is The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific contract data.
Oversight & Accountability
The contract was established in 2009 and awarded as 'Not Competed'. Oversight would focus on ensuring costs are reasonable under the Cost No Fee structure and that the necessity for sole-source procurement remains justified.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for inflated pricing
- Aging contract data
- Limited transparency on justification
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 $90.9 million to THE BOEING COMPANY. THE PURPOSE OF THIS MOD IS TO ESTABLISH CLIN 3002 AND TO ESTABLISH AND FUND CLINS 3002AA AND 3002AB.
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 $90.9 million.
What is the period of performance?
Start: 2009-10-30. End: 2011-12-31.
What was the justification for awarding this contract on a sole-source basis, and has it been re-evaluated over its lifespan?
The provided data does not specify the justification for the sole-source award. Typically, such awards are made when only one source can meet the requirement, or for urgent needs. Without re-evaluation details, it's unclear if the necessity for sole-sourcing was periodically assessed, which is crucial for ensuring fair pricing and avoiding vendor lock-in.
How does the unit cost of the parts procured under this contract compare to similar parts acquired through competitive means?
A direct comparison of unit costs is not possible with the given data. The contract type (Cost No Fee) and the lack of competition make it difficult to establish a reliable benchmark. A thorough analysis would require access to pricing data for comparable parts acquired competitively by the DoD or other agencies.
What is the current operational status and necessity of the aircraft parts being procured under this long-standing contract?
The data indicates the contract was active from 2009 to 2011. Its current operational relevance depends on the specific aircraft platforms it supports. If these parts are for legacy systems, their necessity might be diminishing. If they are for ongoing operations, the long duration without competition warrants scrutiny regarding continued justification and potential for future competition.
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: $90,851,571
Exercised Options: $90,851,571
Current Obligation: $90,851,571
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810606D0001
IDV Type: IDC
Timeline
Start Date: 2009-10-30
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2016-02-17
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