Boeing Awarded $409.9M for Aircraft Fixed Wing Components, Facing Limited Competition
Contract Overview
Contract Amount: $409,874,599 ($409.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2004-09-30
End Date: 2010-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $204.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200505!000013!5700!FA8106!OC-ALC/LAD CLS !FA810604C0006 !A!N! !N! !P00003!20041104!20050930!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000000502896!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !3! ! !C! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!A!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 $409.9 million to THE BOEING COMPANY for work described as: 200505!000013!5700!FA8106!OC-ALC/LAD CLS !FA810604C0006 !A!N! !N! !P00003!20041104!20050930!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDG… Key points: 1. Significant contract value of $409.9M awarded to The Boeing Company. 2. Limited competition raises questions about price discovery and potential overspending. 3. Contract duration of over 5 years suggests long-term reliance on this supplier. 4. The award falls within the Defense sector, specifically Aircraft Manufacturing.
Value Assessment
Rating: questionable
The contract value of $409.9M for aircraft components appears high, especially given the limited competition. Benchmarking against similar fixed-wing aircraft airframe contracts is crucial to assess if this price is justified or inflated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection process. This lack of competition may have led to a higher price than could have been achieved through a more open bidding process.
Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the absence of competitive pressure on pricing.
Public Impact
Potential for higher defense spending due to lack of competition. Impact on the broader aerospace supply chain and availability of parts. Questions about the government's procurement strategy for critical aircraft components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- High contract value
- Long contract duration
Positive Signals
- Established supplier
- Definitive contract type
Sector Analysis
This contract is within the Defense sector, specifically for Aircraft Fixed Wing components. The total obligated amount is substantial, suggesting a significant procurement for military aviation.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine their participation.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the government secured the best possible value. Accountability for the procurement decision and pricing justification is essential.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for reduced innovation due to single-source award.
- Long-term commitment could lock in unfavorable terms.
- Limited transparency in the procurement process.
Tags
aircraft-manufacturing, department-of-defense, ks, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $409.9 million to THE BOEING COMPANY. 200505!000013!5700!FA8106!OC-ALC/LAD CLS !FA810604C0006 !A!N! !N! !P00003!20041104!20050930!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000000502896!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !3! ! !C! ! !202
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 $409.9 million.
What is the period of performance?
Start: 2004-09-30. End: 2010-03-31.
What was the justification for not competing this contract, and what analysis was performed to ensure fair and reasonable pricing?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be necessary to understand the specific justification, such as a sole-source requirement or urgent need. Without this information, it's difficult to assess the fairness of the pricing, but the lack of competition inherently raises concerns about potential overpayment compared to a competitive scenario.
What are the risks associated with awarding such a large contract to a single supplier without competition?
The primary risk is financial: the government may have paid a premium due to the lack of competitive bidding. There's also a strategic risk of over-reliance on a single supplier, potentially impacting future negotiations or supply chain resilience. Furthermore, it could set a precedent for non-competitive awards in similar procurements.
How does this contract's value and terms compare to similar procurements for aircraft components?
Benchmarking this $409.9M contract against similar procurements for aircraft fixed-wing airframes and spares is critical. Given the 'NOT COMPETED' status and a duration extending over five years, a detailed comparison is needed to ascertain if the pricing is reasonable and if the government received adequate value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: 4615 SOUTH OLIVER, WICHITA, KS, 67210
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-09-30
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2021-05-19
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