Boeing awarded $19.4M for aircraft parts, with a significant portion allocated to overhead
Contract Overview
Contract Amount: $19,399,009 ($19.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2007-08-24
End Date: 2010-01-31
Contract Duration: 891 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ANTENNA GROUP
Place of Performance
Location: HEATH, LICKING County, OHIO, 43056
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to THE BOEING COMPANY for work described as: ANTENNA GROUP Key points: 1. Contract value suggests a focus on specialized aircraft components. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 3. Limited competition indicated by 'full and open competition after exclusion of sources' warrants scrutiny. 4. The duration of the contract (891 days) suggests a long-term need for these parts. 5. Geographic location in Ohio may point to specific manufacturing or support facilities. 6. The 'Other Aircraft Parts' NAICS code indicates a broad scope within the aerospace supply chain.
Value Assessment
Rating: fair
The contract's total value of $19.4 million for aircraft parts requires careful benchmarking against similar procurements. Without specific details on the parts or services rendered, it's difficult to definitively assess value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. The overhead component, if substantial, could also inflate the effective price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, specific sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not provided, but this approach can sometimes reduce competitive pressure and potentially lead to less favorable pricing for the government.
Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a broader bidding process.
Public Impact
The primary beneficiaries are likely the Department of Defense, specifically units requiring the specified aircraft parts. The services delivered involve the manufacturing or supply of 'Other Aircraft Parts and Auxiliary Equipment'. The geographic impact is centered in Ohio, where the contractor, The Boeing Company, likely has operations or facilities. Workforce implications could include employment opportunities within Boeing and its supply chain in Ohio.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to cost escalations if not rigorously overseen.
- The 'exclusion of sources' in competition limits the potential for best pricing.
- Lack of specific detail on the 'other aircraft parts' makes value assessment challenging.
- The contract's duration suggests a long-term commitment, requiring sustained oversight.
Positive Signals
- Award to a major defense contractor like Boeing suggests a level of established capability and reliability.
- The contract is for essential aircraft parts, indicating a critical need.
- The fixed fee component of the CPFF contract provides some cost certainty for the contractor's profit.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for such components is characterized by high technical requirements, stringent quality control, and often long production cycles. Spending in this area is critical for maintaining military readiness and supporting the broader aviation industry. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft components or maintenance services within the Department of Defense.
Small Business Impact
There is no indication that this contract involved small business set-asides, as the prime contractor is The Boeing Company. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on Boeing's subcontracting practices for this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given their role in contract administration for the Department of Defense. Accountability measures would be embedded within the contract terms, performance metrics, and reporting requirements. Transparency is often limited for specific defense procurements, but the contract award itself is publicly available.
Related Government Programs
- Aircraft Component Manufacturing
- Defense Logistics Support
- Aerospace Supply Chain Management
- Military Aircraft Maintenance
Risk Flags
- Limited competition due to source exclusion.
- Cost-plus-fixed-fee structure may lead to higher costs.
- Lack of specific part details hinders value assessment.
Tags
defense, department-of-defense, the-boeing-company, cost-plus-fixed-fee, aircraft-parts, ohio, limited-competition, aerospace, manufacturing, dcm
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to THE BOEING COMPANY. ANTENNA GROUP
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 $19.4 million.
What is the period of performance?
Start: 2007-08-24. End: 2010-01-31.
What specific types of aircraft parts were procured under this contract?
The provided data indicates the contract was for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. However, the specific types of parts are not detailed. This category is broad and can encompass a wide range of components, from structural elements and engine parts to electronic systems and interior fittings. Without further documentation, it's impossible to specify the exact nature of the parts procured. This lack of specificity makes it challenging to perform detailed cost analysis or compare the value effectively against other procurements.
How does the overhead allocation in this Cost Plus Fixed Fee (CPFF) contract compare to industry standards?
The data does not provide a breakdown of the overhead costs within the CPFF structure. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. Overhead is a significant component of allowable costs. To compare this to industry standards, one would need to know the percentage of the total contract value attributed to overhead and the specific categories of overhead included. Generally, government agencies scrutinize overhead rates to ensure they are reasonable and allocable to the contract. Benchmarking would involve comparing these rates against historical data for similar contracts or industry averages, which are often proprietary or require specialized databases.
What were the specific reasons for excluding other potential sources in this 'full and open competition after exclusion of sources' award?
The designation 'full and open competition after exclusion of sources' suggests that while the competition was not a sole-source award, certain potential bidders were deliberately excluded from the process. The specific reasons for these exclusions are not provided in the data. Common justifications for excluding sources can include national security concerns, proprietary technology limitations, or a determination that only a limited number of entities possess the required capabilities. Without this specific justification, it's difficult to assess whether the exclusion was warranted or if it unduly limited competition, potentially impacting the final price paid by taxpayers.
What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?
Historical spending on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of Defense is substantial, reflecting the continuous need to maintain and upgrade its vast fleet of aircraft. While this specific $19.4 million contract is a single data point, the DoD consistently awards billions of dollars annually across various categories of aircraft components and related services. Analyzing broader spending trends would involve examining aggregated data over several fiscal years, looking at the distribution of awards among prime contractors, and identifying any shifts in demand for specific types of parts due to new platform acquisitions or modernization programs.
What is the track record of The Boeing Company in delivering on Cost Plus Fixed Fee contracts for the Department of Defense?
The Boeing Company has a long and extensive track record of performing contracts for the Department of Defense, including numerous Cost Plus Fixed Fee (CPFF) agreements. As one of the largest aerospace and defense contractors globally, Boeing has experience with complex, high-value programs. Their performance on CPFF contracts generally involves managing intricate supply chains, adhering to strict technical specifications, and navigating evolving requirements. While specific performance metrics for individual contracts are often not publicly detailed, Boeing's continued success in securing large DoD contracts suggests a generally satisfactory performance history, though like any major contractor, they have faced scrutiny and challenges on specific programs over the years.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7801 S STEMMONS FWY, DENTON, TX, 13
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,599,009
Exercised Options: $20,599,009
Current Obligation: $19,399,009
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-24
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2014-09-24
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