DoD awards $89M for B-1 Structures Engineering Services to Boeing, raising concerns about competition and taxpayer value
Contract Overview
Contract Amount: $89,264,130 ($89.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-04-05
End Date: 2024-09-30
Contract Duration: 2,005 days
Daily Burn Rate: $44.5K/day
Competition Type: NOT COMPETED
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: B-1 GENERAL STRUCTURES ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $89.3 million to THE BOEING COMPANY for work described as: B-1 GENERAL STRUCTURES ENGINEERING SERVICES Key points: 1. Significant contract value of $89.3 million awarded to a single large business. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Long contract duration (5 years) may not reflect evolving engineering needs. 4. Focus on aircraft manufacturing sector, potentially impacting specialized engineering firms.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, combined with a lack of competition, makes it difficult to assess value. Without competitive bids, it's hard to benchmark against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for these engineering services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential engineering services due to the absence of competitive bidding. The long-term nature of the contract could lock the Air Force into potentially outdated solutions or pricing. Limited opportunities for smaller, specialized engineering firms to compete for this significant contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Long contract duration
- Lack of small business participation
Positive Signals
- Essential engineering services for B-1 aircraft
- Award to established prime contractor
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on engineering services for aircraft structures. Spending benchmarks in this area are highly variable based on complexity and specific aircraft.
Small Business Impact
The contract data indicates no small business participation. This suggests that opportunities for small businesses in this specialized engineering domain were either not sought or not realized.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure fair pricing and effective service delivery. Accountability for cost control is crucial given the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Time and Materials pricing
- No small business participation
- Potential for cost overruns
- Limited price transparency
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 $89.3 million to THE BOEING COMPANY. B-1 GENERAL STRUCTURES 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $89.3 million.
What is the period of performance?
Start: 2019-04-05. End: 2024-09-30.
What is the justification for awarding this contract sole-source, and how was the pricing determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without competitive bids, the government relies on cost analysis and historical data to determine fair pricing. However, the absence of market forces makes this assessment inherently more challenging and prone to potential overpayment.
What are the risks associated with a Time and Materials contract for engineering services, especially when awarded sole-source?
Time and Materials contracts can pose a risk of cost overruns as the contractor is reimbursed for labor hours and material costs, plus a fee. When awarded sole-source, the government lacks the leverage of competition to control these costs, increasing the risk of inefficient practices or inflated billing.
How will the effectiveness of the B-1 structures engineering services be measured and ensured over the contract's five-year duration?
Effectiveness will likely be measured through performance metrics, milestones, and deliverables outlined in the contract. Regular reviews and quality assurance checks by the Air Force are critical. However, the sole-source nature might reduce the contractor's incentive to proactively innovate or exceed basic requirements without explicit contractual drivers.
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: TIME AND MATERIALS (Y)
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: $89,588,854
Exercised Options: $89,588,854
Current Obligation: $89,264,130
Actual Outlays: $10,545,493
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810719D0001
IDV Type: IDC
Timeline
Start Date: 2019-04-05
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-07-18
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