Boeing Awarded $73.2M for Aircraft Parts, Facing Limited Competition
Contract Overview
Contract Amount: $73,238,040 ($73.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2025-12-20
Contract Duration: 2,921 days
Daily Burn Rate: $25.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGD::OF::IGD CATIK PRODUCTION
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $73.2 million to THE BOEING COMPANY for work described as: IGD::OF::IGD CATIK PRODUCTION Key points: 1. Significant contract value of $73.2 million awarded to The Boeing Company. 2. Limited competition is a key factor, raising questions about price discovery. 3. The contract spans nearly 8 years, indicating a long-term need. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: fair
The contract value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar contracts for aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, suggesting a limited source for these specific aircraft parts. This lack of competition may lead to higher prices than if multiple vendors were involved.
Taxpayer Impact: Taxpayer funds are being spent on a sole-source or limited-source contract, potentially at a premium due to the absence of competitive pressure.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to limited competition. The long duration of the contract could lock in potentially suboptimal pricing. Dependence on a single large contractor for critical components can pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Clear contract award
- Defined end date
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this area is critical for military readiness but often involves complex supply chains and specialized manufacturing.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The contract's 'OK' status suggests it is currently meeting requirements. However, the lack of competition warrants closer oversight to ensure fair pricing and performance over its duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Potential for inflated pricing
- Long contract duration
- Sole-source dependency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.2 million to THE BOEING COMPANY. IGD::OF::IGD CATIK PRODUCTION
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 $73.2 million.
What is the period of performance?
Start: 2017-12-21. End: 2025-12-20.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for limited competition is not provided in the data. To ensure fair and reasonable pricing, the contracting officer typically relies on market research, historical pricing, or certified cost and pricing data from the contractor. Without this information, it's difficult to definitively assess the pricing's reasonableness.
What are the potential risks associated with relying on a single large contractor for critical aircraft parts over an extended period?
Risks include price escalation without competitive pressure, potential supply chain disruptions if the contractor faces production issues, and reduced flexibility for the government to adopt newer technologies or alternative suppliers. Long-term dependence can also reduce leverage in future negotiations.
How does the firm fixed price structure impact the government's ability to manage costs given the limited competition?
A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. While this can provide cost certainty for the government, in a limited competition scenario, the initial price might be set higher than in a competitive environment, potentially negating some of the FFP benefits.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA812816R0005
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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $73,238,040
Exercised Options: $73,238,040
Current Obligation: $73,238,040
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-12-21
Current End Date: 2025-12-20
Potential End Date: 2025-12-20 00:00:00
Last Modified: 2025-07-14
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