DoD Awards $47.6M to Boeing for Engineering Support, Lacking Competition

Contract Overview

Contract Amount: $47,554,940 ($47.6M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $65.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: ENGINEERING SUPPORT SERVICES FOR MULTIPLE PLATFORMS

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $47.6 million to THE BOEING COMPANY for work described as: ENGINEERING SUPPORT SERVICES FOR MULTIPLE PLATFORMS Key points: 1. Significant contract value of $47.6 million for engineering services. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Fixed Price Incentive contract type may incentivize cost control. 4. Focus on multiple platforms suggests broad engineering needs.

Value Assessment

Rating: questionable

The contract value of $47.6 million for engineering services is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, raising questions about whether the government secured the best possible price.

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 lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this $47.6 million contract means taxpayers may not be benefiting from the most cost-effective solution available in the market.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Essential engineering support for critical Air Force platforms is secured. Potential for reduced innovation and efficiency without market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for inflated pricing

Positive Signals

Fixed Price Incentive contract type
Long-term support for multiple platforms

Sector Analysis

Engineering services are crucial for maintaining and developing complex defense systems. The $47.6 million awarded to Boeing falls within typical ranges for specialized engineering support contracts within the defense sector, though the lack of competition is a key concern.

Small Business Impact

The contract was awarded directly to The Boeing Company and there is no indication of subcontracting opportunities for small businesses in the provided data. This limits the potential for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the justification for not competing the contract is sound and that the pricing is fair and reasonable.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Sole-source award
Potential for overpricing
Limited transparency on justification
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.6 million to THE BOEING COMPANY. ENGINEERING SUPPORT SERVICES FOR MULTIPLE 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $47.6 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the specific justification for awarding this contract sole-source to The Boeing Company?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. Further investigation would be required to determine the exact rationale in this case.

How does the fixed-price incentive structure aim to control costs for this engineering support contract?

A Fixed Price Incentive (FPI) contract establishes a target cost, target profit, and a price ceiling. If the contractor's final cost is below the target cost, both the contractor and the government share in the savings. Conversely, if costs exceed the target, the contractor bears a greater portion of the overrun up to the price ceiling, incentivizing cost efficiency.

What are the potential long-term risks associated with relying on a single contractor for critical engineering support?

Long-term reliance on a single contractor can lead to vendor lock-in, reduced innovation due to lack of competitive pressure, and potential price increases over time as the contractor faces less market scrutiny. It also poses a risk if the contractor experiences financial difficulties or strategic shifts that impact their ability to deliver.

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: $47,554,940

Exercised Options: $47,554,940

Current Obligation: $47,554,940

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