Boeing Awarded $25.1M for Aircraft Accessories and Components, Undisclosed Competition

Contract Overview

Contract Amount: $25,110,457 ($25.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2005-09-19

End Date: 2010-07-14

Contract Duration: 1,759 days

Daily Burn Rate: $14.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!000124!5700!FA8107!OC-ALC/LAD B52 !FA810705C0007 !A!N! !N! ! !20050919!20070531!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000008150000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !1! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to THE BOEING COMPANY for work described as: 200511!000124!5700!FA8107!OC-ALC/LAD B52 !FA810705C0007 !A!N! !N! ! !20050919!20070531!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDG… Key points: 1. Contract value of $25.1 million for aircraft accessories and components. 2. Awarded to The Boeing Company, a major aerospace manufacturer. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. The procurement method was 'Not Competed', raising questions about competition. 5. The sector is Defense, specifically Aircraft Manufacturing.

Value Assessment

Rating: fair

The contract value of $25.1 million for aircraft accessories and components appears substantial. Benchmarking against similar contracts for specialized aircraft parts is difficult without more detailed specifications, but the value suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'Not Competed', indicating a limited competition approach. This could be due to specific requirements, sole-source justification, or a lack of available vendors. The absence of broader competition may have impacted price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: The lack of full and open competition for a $25.1 million contract raises concerns about potential overspending and whether the best possible price was achieved for taxpayer funds.

Public Impact

Taxpayers may have paid more than necessary due to limited competition. The contract supports the sustainment and readiness of critical aircraft. The award to a single, large prime contractor could limit opportunities for smaller businesses in the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award justification

Positive Signals

Award to a known, capable contractor
Firm Fixed Price contract provides cost certainty

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security and maintaining military readiness. Benchmarks for such specialized components are highly variable based on aircraft type and system complexity.

Small Business Impact

The contract was awarded to The Boeing Company, a large prime contractor. While large contracts often involve subcontractors, the 'Not Competed' status suggests limited direct opportunities for small businesses to compete for this specific award. Further analysis of the subcontracting plan would be needed.

Oversight & Accountability

The 'Not Competed' designation warrants further oversight to ensure the justification for limited competition was sound and that the pricing was fair and reasonable. Accountability for procurement decisions is crucial, especially when full competition is bypassed.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency in award justification
Possible missed opportunities for small businesses

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to THE BOEING COMPANY. 200511!000124!5700!FA8107!OC-ALC/LAD B52 !FA810705C0007 !A!N! !N! ! !20050919!20070531!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000008150000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !1! ! ! ! ! !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 $25.1 million.

What is the period of performance?

Start: 2005-09-19. End: 2010-07-14.

What was the specific justification for not competing this contract, and was it adequately documented?

The justification for not competing this contract is not detailed in the provided data. Typically, 'Not Competed' awards require a formal justification, such as a sole-source requirement, urgent need, or unique capability. Without access to the contract file, it's impossible to verify the adequacy of the documentation and ensure it aligns with federal procurement regulations.

How does the unit cost of these aircraft accessories and components compare to industry benchmarks, given the limited competition?

Directly comparing the unit cost is challenging without specific part numbers and detailed specifications. However, the absence of competition often leads to higher prices than would be achieved in a competitive environment. A thorough price analysis by the contracting officer should have been performed to ensure reasonableness, but the lack of competitive bids limits the ability to independently verify this.

What is the long-term impact on aircraft readiness and sustainment costs due to this non-competitive award?

The long-term impact depends on the criticality of these components and the sustained need for them. While awarding to a known entity like Boeing ensures supply, the potential for higher costs over the contract's life could increase the overall sustainment burden. If these parts are essential and unique, the non-competitive award might be justified for readiness, but it still necessitates vigilance on pricing.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline