DoD Awards Boeing $166.7M for Integrated Battle Station Lots 5-7, Raising Oversight Concerns
Contract Overview
Contract Amount: $166,674,119 ($166.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2022-09-14
Contract Duration: 2,541 days
Daily Burn Rate: $65.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INTERGRATED BATTLE STATION LOTS 5-7
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $166.7 million to THE BOEING COMPANY for work described as: INTERGRATED BATTLE STATION LOTS 5-7 Key points: 1. Significant contract value of $166.7 million for aircraft manufacturing. 2. Sole-source award to The Boeing Company limits competitive pricing. 3. Long contract duration of 2541 days may indicate potential for cost overruns. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $166.7 million for integrated battle stations is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company, indicating a lack of competition. This method can lead to higher prices as there is no market pressure to reduce costs.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about taxpayer value and the potential for inflated costs.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract increases the risk of scope creep and cost escalation. Limited transparency in the sole-source award process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- No small business participation
Positive Signals
- Award to established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Defense contracts often involve complex systems and long development cycles, making oversight crucial for ensuring value for money.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and potentially introduce innovative solutions at competitive prices.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The long duration also necessitates robust monitoring of performance and costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration increases risk of cost overruns.
- Lack of small business participation.
- Potential for lack of transparency in pricing.
- High contract value without competitive validation.
Tags
aircraft-manufacturing, department-of-defense, ok, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.7 million to THE BOEING COMPANY. INTERGRATED BATTLE STATION LOTS 5-7
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $166.7 million.
What is the period of performance?
Start: 2015-09-30. End: 2022-09-14.
What specific justification was provided for the sole-source award, and how does it align with DoD's policies on competitive sourcing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific justification needs to be examined against DoD's Federal Acquisition Regulation (FAR) to ensure it meets the criteria for non-competitive procurement and that all reasonable efforts were made to explore competitive options.
How will the Department of Defense ensure cost control and prevent scope creep over the 2541-day duration of this contract?
Effective cost control and scope management for long-duration contracts rely on detailed performance metrics, regular progress reviews, and strict change control processes. The DoD should implement phased funding, milestone-based payments, and independent cost estimates to monitor expenditures and prevent unauthorized scope expansion, ensuring the final cost remains justifiable.
What is the strategic importance of these 'Integrated Battle Station Lots 5-7' to the Air Force's mission, and how does this influence the procurement approach?
The strategic importance of 'Integrated Battle Station Lots 5-7' likely relates to enhancing combat effectiveness, situational awareness, or operational capabilities for Air Force platforms. If these systems are critical and highly specialized, it could influence the decision towards a sole-source award if only one contractor possesses the necessary expertise or technology, though this still requires rigorous justification.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $232,671,366
Exercised Options: $166,676,988
Current Obligation: $166,674,119
Subaward Activity
Number of Subawards: 141
Total Subaward Amount: $85,380,347
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-30
Current End Date: 2022-09-14
Potential End Date: 2022-09-14 00:00:00
Last Modified: 2022-09-14
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