DoD awards $31.5M to Boeing for B-1 Engineering Services, a sole-source contract
Contract Overview
Contract Amount: $31,457,557 ($31.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-01-01
End Date: 2019-02-03
Contract Duration: 763 days
Daily Burn Rate: $41.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF B-1 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $31.5 million to THE BOEING COMPANY for work described as: IGF::OT::IGF B-1 ENGINEERING SERVICES Key points: 1. Significant contract value awarded to a single, large defense contractor. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (763 days) may indicate complex or ongoing needs. 4. Aircraft manufacturing sector is a major area of defense spending.
Value Assessment
Rating: questionable
The contract value of $31.5M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible value for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single contractor for critical engineering services could pose a long-term risk. Transparency in the justification for a sole-source award is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Award to established prime contractor
- Clear contract end date
Sector Analysis
This contract falls within the aircraft manufacturing sector, a critical component of defense spending. Benchmarks for engineering services in this sector can vary widely based on specialization and contract type.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor, and does not appear to involve small business participation based on the provided data.
Oversight & Accountability
Oversight is needed to ensure the justification for the sole-source award is robust and that the services provided meet all contractual requirements and quality standards.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpayment due to sole-source award
- Lack of competitive pressure on pricing
- Dependency on a single contractor
- Limited transparency in award justification
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.5 million to THE BOEING COMPANY. IGF::OT::IGF B-1 ENGINEERING SERVICES
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 $31.5 million.
What is the period of performance?
Start: 2017-01-01. End: 2019-02-03.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research analysis conducted to confirm no other capable sources existed?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. A thorough market research analysis should have been performed to validate the absence of other qualified sources and to ensure the government's interests were protected, including obtaining fair and reasonable pricing.
How does the cost of these engineering services compare to similar contracts awarded competitively within the defense sector for aircraft manufacturing?
Without competitive bidding data, a direct cost comparison is challenging. However, a benchmark analysis against similar sole-source or competitively awarded contracts for specialized aircraft engineering services would be necessary. If this contract's pricing significantly exceeds industry averages or previous competitive awards, it indicates a potential overpayment and a risk to taxpayer value.
What mechanisms are in place to ensure the effectiveness and quality of the engineering services provided by Boeing under this sole-source contract?
Effectiveness and quality are typically ensured through robust contract management, performance metrics, and quality assurance surveillance plans. The Defense Contract Management Agency (DCMA) would be responsible for monitoring Boeing's performance against the contract's technical requirements, delivery schedules, and quality standards to ensure the services are effective and meet DoD needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $32,251,086
Exercised Options: $32,251,086
Current Obligation: $31,457,557
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810714D0002
IDV Type: IDC
Timeline
Start Date: 2017-01-01
Current End Date: 2019-02-03
Potential End Date: 2019-02-03 00:00:00
Last Modified: 2023-07-26
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