DoD's $308M Boeing Contract for Aircraft Manufacturing: A Sole-Source Deal with Firm Fixed Price Terms
Contract Overview
Contract Amount: $308,540,354 ($308.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-12-31
End Date: 2009-05-29
Contract Duration: 2,341 days
Daily Burn Rate: $131.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $308.5 million to THE BOEING COMPANY for work described as: Key points: 1. Significant spending of $308.5 million on aircraft manufacturing. 2. Sole-source award to The Boeing Company, limiting competition. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Long contract duration of 2341 days (approx. 6.4 years) indicates a substantial project. 5. Awarded by the Defense Contract Management Agency, part of the Department of Defense.
Value Assessment
Rating: fair
The contract's firm fixed price structure aims for cost control. However, without competition, it's difficult to assess if the $308.5 million price represents optimal value compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and may result in a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition in this sole-source award raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long duration of the contract ties up significant government resources. Reliance on a single supplier for critical aircraft manufacturing could pose supply chain risks. The specific aircraft or components procured are not detailed, limiting public understanding of the spending's purpose.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for inflated pricing
Positive Signals
- Firm Fixed Price contract type
- Awarded by a major defense agency
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs, complex supply chains, and significant government oversight due to national security implications.
Small Business Impact
The data indicates a large sole-source contract awarded directly to The Boeing Company. There is no information suggesting opportunities for small businesses to participate as subcontractors or prime contractors on this specific award.
Oversight & Accountability
The contract was awarded by the Defense Contract Management Agency, suggesting established oversight mechanisms within the Department of Defense. However, the sole-source nature warrants scrutiny to ensure fair pricing and performance.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Limited transparency on specific deliverables
- Long-term commitment without demonstrated value comparison
- Potential supply chain dependency risk
Tags
aircraft-manufacturing, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $308.5 million to THE BOEING COMPANY. See the official description on USAspending.
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 $308.5 million.
What is the period of performance?
Start: 2002-12-31. End: 2009-05-29.
What specific aircraft or components were procured under this contract, and what was the justification for a sole-source award?
The provided data does not specify the exact aircraft or components. Justification for sole-source awards typically involves unique capabilities, urgent needs, or lack of viable alternatives. A detailed review of the contract's justification documentation would be necessary to understand the rationale behind awarding this significant sum to Boeing without competition.
How does the firm fixed price compare to industry benchmarks for similar aircraft manufacturing contracts, especially considering the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. Firm Fixed Price contracts aim for predictability, but sole-source awards can obscure true market value. A comparative analysis against historical sole-source contracts for similar platforms or independent cost estimates would be needed to assess pricing fairness.
What are the long-term implications of this sole-source award on the defense supply chain and potential future competition in aircraft manufacturing?
Sole-source awards can solidify a single supplier's market position, potentially reducing future competitive opportunities and increasing reliance on that specific entity. This could impact innovation and price competitiveness in the long run. The DoD may need strategies to foster competition or ensure robust oversight for such long-term, single-source arrangements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 626 ANCHORS ST NW, FORT WALTON BE, FL, 32548
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-12-31
Current End Date: 2009-05-29
Potential End Date: 2009-05-29 00:00:00
Last Modified: 2020-02-04
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