Boeing Awarded $47.8M for Aircraft Fixed Wing Equipment, Defense Contract Faces Scrutiny
Contract Overview
Contract Amount: $47,867,609 ($47.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2004-04-08
End Date: 2009-08-31
Contract Duration: 1,971 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200407!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0067 ! !20040408!20050630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000004734115!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !335999!E! !5!B!S! ! ! !99990909!B! ! !N!Z!A!N!J!1!001!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $47.9 million to THE BOEING COMPANY for work described as: 200407!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0067 ! !20040408!20050630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKAL… Key points: 1. Contract awarded to The Boeing Company for aircraft equipment. 2. Significant value of $47.8 million raises questions about cost-effectiveness. 3. Full and open competition was utilized, but oversight is needed. 4. The sector is Defense, specifically Aircraft Manufacturing.
Value Assessment
Rating: fair
The contract value of $47.8 million for aircraft equipment appears substantial. Benchmarking against similar contracts for fixed-wing aircraft components is necessary to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the final price and its justification require further examination to ensure taxpayer funds are used efficiently.
Taxpayer Impact: The substantial value of this contract necessitates careful monitoring to ensure it represents good value for taxpayers and that the awarded price is justified.
Public Impact
Taxpayers are funding a significant contract for aircraft equipment. The defense sector's spending on aircraft components impacts national security budgets. Potential for cost overruns or inefficiencies in large defense contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Potential for cost escalation
- Limited transparency on specific equipment details
Positive Signals
- Full and open competition utilized
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security but also represents a significant portion of the defense budget, requiring diligent oversight.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no immediate indication of small business participation in this specific award, which warrants further investigation to ensure opportunities for small businesses are not overlooked.
Oversight & Accountability
While full and open competition was used, the substantial value of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure compliance, quality, and cost control throughout the contract lifecycle.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High contract value
- Potential for cost overruns
- Limited detail on specific equipment
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.9 million to THE BOEING COMPANY. 200407!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0067 ! !20040408!20050630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000004734115!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !335999!E! !5!B!S! ! ! !999
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 $47.9 million.
What is the period of performance?
Start: 2004-04-08. End: 2009-08-31.
What specific aircraft fixed-wing equipment is being procured, and how does its cost compare to industry benchmarks?
The data indicates the procurement is for 'Aircraft Fixed Wing' and 'Other Aircraft Equipment' under NAICS code 336411. A detailed breakdown of the specific components and their unit costs is needed to compare against industry benchmarks. Without this granular data, assessing the value for money is challenging, though the overall contract value of $47.8 million suggests a significant acquisition.
What are the key performance indicators and risk mitigation strategies for this contract, given its duration and value?
The contract has a duration of 1971 days (from award to estimated completion) and a value of $47.8 million. Key performance indicators should focus on timely delivery, adherence to specifications, and quality control. Risk mitigation strategies should address potential supply chain disruptions, technological obsolescence, and cost overruns, especially given the firm fixed-price nature which places cost risk on the contractor.
How does the utilization of 'full and open competition' translate into cost savings or improved outcomes for this specific contract?
Full and open competition theoretically drives down prices by allowing multiple qualified bidders to compete. For this $47.8 million contract, it suggests that multiple companies had the opportunity to bid. The effectiveness of this competition in achieving cost savings and optimal outcomes depends on the number of bids received, the competitiveness of those bids, and the final negotiated price compared to initial estimates.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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
Address: 626 ANCHORS ST NW, FORT WALTON BEACH, FL, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2004-04-08
Current End Date: 2009-08-31
Potential End Date: 2009-08-31 00:00:00
Last Modified: 2014-08-06
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