Boeing Awarded $18.3M for Aircraft Parts & Support by Air Force

Contract Overview

Contract Amount: $18,295,548 ($18.3M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2008-01-01

End Date: 2011-05-31

Contract Duration: 1,246 days

Daily Burn Rate: $14.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR, OPERATIONS, MAINTENANCE & INSTRUCTOR SUPPORT (COMIS)

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63101

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to THE BOEING COMPANY (0674) for work described as: CONTRACTOR, OPERATIONS, MAINTENANCE & INSTRUCTOR SUPPORT (COMIS) Key points: 1. The contract focuses on operations, maintenance, and instructor support for aircraft. 2. Boeing, a major defense contractor, holds this award. 3. The contract was not competed, raising potential value concerns. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $18.3 million over approximately 4 years is difficult to assess without specific performance metrics or comparable contracts. The lack of competition suggests potential for overpricing.

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 potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.

Public Impact

Supports critical Air Force operations and maintenance. Ensures continued readiness through specialized contractor support. Impacts the aerospace manufacturing sector through a significant award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Sole-source award

Positive Signals

Experienced contractor
Essential support services

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and support. Spending in this area is critical for national security and is often dominated by a few large, specialized firms.

Small Business Impact

This contract was awarded to The Boeing Company, a large prime contractor, and there is no indication of small business participation. The nature of the services likely requires specialized capabilities not typically met by small businesses.

Oversight & Accountability

The lack of competition warrants closer oversight to ensure the government is receiving fair value. Accountability for performance and cost management is crucial for sole-source contracts.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price negotiation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to THE BOEING COMPANY (0674). CONTRACTOR, OPERATIONS, MAINTENANCE & INSTRUCTOR SUPPORT (COMIS)

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY (0674).

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 $18.3 million.

What is the period of performance?

Start: 2008-01-01. End: 2011-05-31.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. The government should have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to ensure the price was fair and reasonable, despite the absence of competition.

What are the specific risks associated with relying on a single contractor for these critical support services?

Key risks include potential price gouging due to lack of competition, contractor complacency leading to reduced service quality, and vulnerability to supply chain disruptions affecting the sole provider. Dependency on one entity can also limit the government's flexibility in adapting to changing requirements or seeking more innovative solutions.

How does this contract contribute to the overall effectiveness and readiness of the Air Force's aircraft fleet?

This contract is likely crucial for maintaining the operational readiness of specific Air Force aircraft by providing essential maintenance, operational support, and instructor services. The expertise of The Boeing Company in its own aircraft systems ensures that support is tailored and effective, contributing directly to mission capability.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,295,548

Exercised Options: $18,295,548

Current Obligation: $18,295,548

Contract Characteristics

Cost or Pricing Data: YES

Timeline