DoD awards Boeing $46.4M for aircraft engineering support, raising questions on competition
Contract Overview
Contract Amount: $46,394,551 ($46.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-01-31
End Date: 2023-12-21
Contract Duration: 1,785 days
Daily Burn Rate: $26.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ENGINEERING SUPPORT SERVICES FOR MULTIPLE AIRCRAFT PLATFORMS
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $46.4 million to THE BOEING COMPANY for work described as: ENGINEERING SUPPORT SERVICES FOR MULTIPLE AIRCRAFT PLATFORMS Key points: 1. Significant contract value awarded to a single large contractor. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Long contract duration (nearly 5 years) may limit flexibility. 4. Engineering services sector is critical but often complex to benchmark.
Value Assessment
Rating: questionable
The contract value of $46.4M over nearly 5 years for engineering support is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services from other providers.
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 as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these critical engineering services.
Public Impact
Taxpayers may be overpaying for essential aircraft engineering support. Limited visibility into the justification for a sole-source award. Potential for reduced innovation due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical support for multiple aircraft platforms
- Established contractor with relevant experience
Sector Analysis
Engineering services are vital for maintaining complex defense systems. This contract supports multiple aircraft platforms, a common but high-value area within the defense sector. Benchmarking is challenging without competitive data.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors, suggesting missed opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further scrutiny to ensure the justification was robust and that the pricing is fair. Oversight is needed to confirm the necessity of this approach.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Missed small business opportunities
Tags
engineering-services, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.4 million to THE BOEING COMPANY. ENGINEERING SUPPORT SERVICES FOR MULTIPLE AIRCRAFT PLATFORMS
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 $46.4 million.
What is the period of performance?
Start: 2019-01-31. End: 2023-12-21.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's impossible to confirm the precise reasons. However, the lack of competition inherently raises concerns about whether alternative solutions were adequately explored or if market research was insufficient.
How can the government ensure fair pricing and value for money in sole-source contracts?
Ensuring fair pricing in sole-source contracts requires rigorous cost analysis, independent government cost estimates, and thorough negotiation. Agencies should leverage historical data, industry benchmarks, and potentially engage third-party experts. Transparency in the negotiation process and clear performance metrics are also crucial for accountability and demonstrating value.
What is the potential impact of long-term sole-source contracts on technological advancement and innovation within the defense sector?
Long-term sole-source contracts can stifle innovation by reducing the incentive for contractors to invest in new technologies or more efficient processes, as they face no competitive pressure. This can lead to technological stagnation and reliance on incumbent solutions, potentially hindering the military's ability to adapt to evolving threats and opportunities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $52,803,972
Exercised Options: $52,803,972
Current Obligation: $46,394,551
Actual Outlays: $182,869
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,220,025
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810617D0002
IDV Type: IDC
Timeline
Start Date: 2019-01-31
Current End Date: 2023-12-21
Potential End Date: 2023-12-21 00:00:00
Last Modified: 2024-05-17
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