Boeing Awarded $32.8M for Aircraft Parts, Sole-Source Contract Raises Oversight Concerns
Contract Overview
Contract Amount: $32,838,088 ($32.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-12-02
End Date: 2007-09-16
Contract Duration: 1,384 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200403!000020!5700!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460103C0430 !A!N! !N! !P00002!20031202!20040930!007237241!007237241!009256819!N!THE BOEING COMPANY !3801 S OLIVER ST !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000015250000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !3!A!S!C! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!6A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67210
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to THE BOEING COMPANY for work described as: 200403!000020!5700!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460103C0430 !A!N! !N! !P00002!20031202!20040930!007237241!007237241!009256819!N!THE BOEING COMPANY !3801 S OLIVER ST !WICHITA !KS!67210!79000!173!20!WICHITA !SEDG… Key points: 1. Contract awarded to The Boeing Company for aircraft parts. 2. Sole-source procurement method limits competition and potentially impacts price discovery. 3. Significant taxpayer investment of $32.8 million for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. Contract duration of 1384 days suggests a long-term need for these components.
Value Assessment
Rating: questionable
The contract value of $32.8 million for aircraft parts is substantial. Without specific unit cost data or benchmarks for similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' procurements, it is difficult to definitively assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits the government's ability to ensure the best possible price through market forces and competitive bidding.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing, potentially leading to higher overall costs for these aircraft parts.
Public Impact
Taxpayers are funding a significant contract for aircraft components. Lack of competition raises questions about the efficiency of the procurement process. The long contract duration implies a sustained need for these parts, impacting future budgets. The specific nature of the parts is not detailed, making public understanding of the expenditure challenging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Contract awarded to a major aerospace manufacturer
- Definitive contract type suggests a clear agreement
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense and aerospace operations. Spending in this area can be substantial, and competitive bidding is typically crucial for cost control.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors or were given an opportunity to compete for this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable and that the government is receiving the best value. Transparency regarding the justification for the sole-source award is essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-competitive pricing.
- Lack of transparency on justification for sole-source.
- No clear indication of small business participation.
- Long contract duration may lock in potentially suboptimal pricing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to THE BOEING COMPANY. 200403!000020!5700!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460103C0430 !A!N! !N! !P00002!20031202!20040930!007237241!007237241!009256819!N!THE BOEING COMPANY !3801 S OLIVER ST !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000015250000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !3!A!S!C! ! !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 $32.8 million.
What is the period of performance?
Start: 2003-12-02. End: 2007-09-16.
What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives considered?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or lack of viable alternative sources. Without access to the contract's justification documentation, it's impossible to determine the specific reasons. However, the absence of competition inherently limits the government's ability to explore all potential sources and ensure the most cost-effective solution.
How does the unit cost of these aircraft parts compare to similar items procured competitively by the Department of Defense?
Benchmarking the unit cost of these aircraft parts against competitively procured similar items is crucial for assessing value. Given this is a sole-source award, direct comparison data may be limited. A thorough review of historical pricing for comparable components, or an independent cost analysis, would be necessary to determine if the pricing is fair and reasonable.
What is the expected impact of this $32.8 million expenditure on the overall defense budget for aircraft maintenance and parts?
This $32.8 million contract represents a significant allocation of funds towards aircraft parts. Its impact on the overall defense budget depends on the specific line items it draws from and the total allocated for aircraft sustainment. The long-term nature of the contract suggests a sustained demand, which needs to be factored into future budget planning to ensure adequate funding without compromising other critical defense priorities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-12-02
Current End Date: 2007-09-16
Potential End Date: 2007-09-16 00:00:00
Last Modified: 2021-11-01
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