DoD awards $24M to Boeing for B-1 Engineering Services, raising questions on competition
Contract Overview
Contract Amount: $23,974,686 ($24.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-01-01
End Date: 2018-12-31
Contract Duration: 364 days
Daily Burn Rate: $65.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 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 $24.0 million to THE BOEING COMPANY for work described as: B-1 ENGINEERING SERVICES Key points: 1. Significant contract value of $23.97M awarded to a single large contractor. 2. Lack of competition raises concerns about potential overpricing and value for taxpayer money. 3. The contract falls under Aircraft Manufacturing, a sector often dominated by a few large players. 4. Limited transparency on the pricing mechanism for this sole-source award.
Value Assessment
Rating: questionable
The contract's value of $23.97M for engineering services needs further scrutiny. Without competitive bidding, it's difficult to benchmark pricing against similar services, potentially indicating a higher cost than necessary.
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 less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $23.97M contract means taxpayers may be paying a premium for these engineering services.
Public Impact
Taxpayers may be overpaying for essential engineering services due to the absence of competitive bidding. The reliance on a single contractor for critical aircraft manufacturing support could pose a long-term risk. Lack of transparency in sole-source awards hinders public trust and accountability in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Contract awarded to established prime contractor
- Services critical to aircraft manufacturing
Sector Analysis
This contract for engineering services supports the Aircraft Manufacturing sector, specifically related to the B-1 bomber. Spending in this sector can be substantial, but often involves limited competition due to specialized expertise and high barriers to entry.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor, and there is no indication of small business participation. This suggests a missed opportunity to engage small businesses in the defense supply chain.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure fair pricing and effective service delivery. Accountability mechanisms should be robust to justify the expenditure without competitive pressure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Limited transparency on service scope and pricing justification.
- Missed opportunity for small business engagement.
- Reliance on a single contractor for critical support.
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 $24.0 million to THE BOEING COMPANY. 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 $24.0 million.
What is the period of performance?
Start: 2018-01-01. End: 2018-12-31.
What specific engineering services were provided under this contract, and how were they essential to the B-1 program?
The contract data indicates 'B-1 ENGINEERING SERVICES' provided by The Boeing Company. While specific details are not provided, these services likely encompass technical support, design modifications, maintenance planning, or system upgrades crucial for the operational readiness and sustainment of the B-1 Lancer bomber fleet. The firm fixed-price nature suggests a defined scope of work.
What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?
Sole-source awards typically require a justification, such as the unique capability of the contractor, urgency, or lack of adequate competition. For a large prime contractor like Boeing supporting a specific platform like the B-1, the justification might relate to proprietary data, specialized knowledge, or the need for seamless integration with existing systems, though this needs explicit documentation.
How does the $23.97M contract value compare to similar engineering support contracts for other major defense platforms, and what is the potential taxpayer impact?
Benchmarking this $23.97M contract is challenging without more specific service details and competitive data. However, given it's a sole-source award to a prime contractor for platform-specific engineering, the taxpayer impact could be significant if the pricing is not rigorously negotiated. Without competition, there's a risk of paying above fair market value, potentially diverting funds from other critical defense 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: $23,999,686
Exercised Options: $23,999,686
Current Obligation: $23,974,686
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: 2018-01-01
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2023-07-19
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