Boeing Awarded $32.7M for Engineering Services by DoD, Sole-Source Contract
Contract Overview
Contract Amount: $32,675,364 ($32.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-04-14
End Date: 2022-08-31
Contract Duration: 1,965 days
Daily Burn Rate: $16.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF B-1 ENGINEERING SEWRVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $32.7 million to THE BOEING COMPANY for work described as: IGF::OT::IGF B-1 ENGINEERING SEWRVICES Key points: 1. Significant contract value awarded to a single large prime contractor. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (1965 days) may indicate complex or ongoing needs. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $32.7M price represents fair value.
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 may result in higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds may be at a higher risk of being spent inefficiently due to the lack of competition.
Public Impact
Award to a major defense contractor suggests a focus on national security or critical infrastructure. Lack of competition could mean missed opportunities for smaller, innovative businesses. Long-term nature of the contract implies sustained government need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
Positive Signals
- Award to established prime contractor
- Clear contract award details
Sector Analysis
This contract falls within the aerospace and defense sector, specifically aircraft manufacturing support. Spending benchmarks in this area are highly variable based on program complexity and defense priorities.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities were not extended to small businesses, potentially missing out on specialized capabilities or economic development.
Oversight & Accountability
The contract was awarded by the Department of Defense via the Defense Contract Management Agency. Oversight would focus on ensuring the fixed fee is justified and costs are reasonable under the CPFF structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- No small business participation
- Long contract duration
- Potential for cost overruns
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 $32.7 million to THE BOEING COMPANY. IGF::OT::IGF B-1 ENGINEERING SEWRVICES
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 $32.7 million.
What is the period of performance?
Start: 2017-04-14. End: 2022-08-31.
What specific engineering services are being procured, and why was a sole-source award deemed necessary?
The specific engineering services are not detailed in the provided data, only that they fall under 'B-1 ENGINEERING SEWRVICES'. A sole-source award is typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, urgency, or national security concerns. Further investigation would be needed to confirm the justification.
How does the Cost Plus Fixed Fee structure impact the government's risk and the contractor's incentive for efficiency?
The Cost Plus Fixed Fee (CPFF) structure shifts cost risk to the government, as it reimburses the contractor for allowable costs plus a predetermined fixed fee. While the fee provides some incentive for efficiency, the contractor may have less motivation to control costs compared to fixed-price contracts, potentially leading to higher overall expenditures.
What is the potential impact of awarding such a significant contract without competition on innovation and market competitiveness?
Awarding a $32.7M contract solely to Boeing limits the opportunity for other companies, including small businesses and potential innovators, to compete and demonstrate their capabilities. This can stifle market competition, reduce pressure on Boeing to innovate or offer competitive pricing, and potentially lead to higher long-term costs for the government.
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: COST PLUS FIXED FEE (U)
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: $41,774,909
Exercised Options: $41,774,400
Current Obligation: $32,675,364
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: 2017-04-14
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 00:00:00
Last Modified: 2023-05-31
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