Air Force awards $19.3M for spare booms to Boeing, a sole-source contract
Contract Overview
Contract Amount: $19,330,114 ($19.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-12-01
End Date: 2026-09-30
Contract Duration: 668 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO PROVIDE SPARE BOOMS.
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $19.3 million to THE BOEING COMPANY for work described as: DELIVERY ORDER TO PROVIDE SPARE BOOMS. Key points: 1. Boeing secured a $19.3M contract for spare booms, highlighting its established role in aircraft manufacturing. 2. The sole-source nature of this award warrants scrutiny regarding price discovery and potential competition. 3. A significant duration of 668 days suggests a substantial need for these critical aircraft components. 4. The contract's firm-fixed-price structure aims to control costs, but the lack of competition is a risk.
Value Assessment
Rating: fair
The contract value of $19.3M for spare booms appears substantial. Without specific unit cost data or benchmarks for similar boom procurements, a precise value assessment is difficult. The firm-fixed-price type suggests cost certainty, but the lack of competition raises concerns about whether the price reflects optimal market value.
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 may result in higher costs than if multiple vendors had competed. The justification for sole-source procurement is critical to understanding the necessity of this approach.
Taxpayer Impact: The lack of competition in this sole-source award may lead to taxpayers paying a premium for spare booms, as market forces are not leveraged to drive down costs.
Public Impact
Ensures operational readiness for Air Force aircraft by providing essential spare parts. Supports the continued maintenance and longevity of critical aircraft fleets. Highlights the reliance on established manufacturers for specialized aerospace components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of public unit cost data hinders detailed value analysis.
- Long contract duration could indicate potential for cost overruns if not managed closely.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Addresses a critical need for operational aircraft components.
- Awardee is a known entity with established expertise in aircraft manufacturing.
Sector Analysis
The Department of Defense, specifically the Air Force, operates within the highly specialized Aircraft Manufacturing sector. Spending in this area is often characterized by long-term contracts, high R&D costs, and a limited number of qualified suppliers due to stringent requirements and certifications.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific delivery order. Future opportunities may exist for small businesses in the supply chain for components or related services, but this award itself does not directly benefit them.
Oversight & Accountability
The award is a delivery order under an existing contract, suggesting some level of prior oversight. However, the sole-source nature necessitates robust justification and review by the Air Force to ensure fair and reasonable pricing and to explore any potential for future competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for higher costs due to limited market pressure.
- Lack of transparency in unit cost makes value assessment difficult.
- Long contract duration requires sustained oversight.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to THE BOEING COMPANY. DELIVERY ORDER TO PROVIDE SPARE BOOMS.
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 $19.3 million.
What is the period of performance?
Start: 2024-12-01. End: 2026-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative sources considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the Air Force would need to document why only Boeing could provide these specific spare booms, potentially due to design, manufacturing processes, or existing integration with their aircraft. A thorough review would confirm if other qualified sources were indeed unavailable or unsuitable.
How does the unit cost of these spare booms compare to industry benchmarks or previous procurements of similar components?
Without specific unit cost data or access to historical pricing for comparable spare booms, a direct benchmark comparison is challenging. The $19.3 million total value spread over the contract duration provides a general sense of scale. However, a detailed analysis would require breaking down the total cost into per-unit pricing and comparing it against established industry cost models or prior Air Force procurements for similar aircraft parts.
What measures are in place to ensure the quality and timely delivery of these spare booms, given the long contract duration?
The firm-fixed-price contract structure inherently incentivizes the contractor to deliver on time and within budget. The Air Force likely has quality assurance surveillance plans (QASPs) in place to monitor production, inspect components, and ensure adherence to specifications. The extended delivery period (668 days) suggests a planned production and delivery schedule that requires diligent oversight to prevent delays and ensure the availability of critical parts when needed.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108
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: $19,330,114
Exercised Options: $19,330,114
Current Obligation: $19,330,114
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $49,841
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA860919D0007
IDV Type: IDC
Timeline
Start Date: 2024-12-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-02
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