DoD Awards Boeing $73.8M for C-17 Aircrew Training Systems, Lacking Competition
Contract Overview
Contract Amount: $73,757,917 ($73.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-12-20
End Date: 2015-05-15
Contract Duration: 1,607 days
Daily Burn Rate: $45.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 AIRCREW TRAINING SYSTEMS WEAPON SYSTEM TRAINERS
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $73.8 million to THE BOEING COMPANY for work described as: C-17 AIRCREW TRAINING SYSTEMS WEAPON SYSTEM TRAINERS Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about price discovery and potential overpayment. 3. Training systems are critical for aircrew readiness, but cost-effectiveness needs scrutiny. 4. The sector involves specialized defense manufacturing, often with limited competitive options.
Value Assessment
Rating: questionable
The contract value of $73.8 million for aircrew training systems appears high given the lack of competition. Without competitive bidding, it's difficult to benchmark pricing against similar systems or market rates, suggesting potential for inflated costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning no competition was sought. This significantly limits price discovery and potentially allows the contractor to set higher prices than would be achievable in a competitive environment.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure, with funds potentially diverted from other critical defense needs.
Public Impact
Ensures readiness for C-17 aircrews, vital for global logistics and military operations. Supports specialized manufacturing jobs within the defense industrial base. Potential for higher costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value without clear justification
Positive Signals
- Critical training system for a key military asset
- Awarded to a major defense contractor with proven capabilities
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized training equipment for aircraft. Spending in this area is critical for maintaining operational readiness, but often characterized by high costs and limited competition due to the unique nature of defense systems.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific sole-source award, missing an opportunity for their participation.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the price paid is fair and reasonable. Accountability for the justification of non-competition is crucial.
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 lacks competition
- Potential for inflated pricing
- Limited transparency on cost justification
- No small business participation noted
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.8 million to THE BOEING COMPANY. C-17 AIRCREW TRAINING SYSTEMS WEAPON SYSTEM TRAINERS
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 $73.8 million.
What is the period of performance?
Start: 2010-12-20. End: 2015-05-15.
What was the justification for awarding this contract on a sole-source basis, and was a thorough market analysis conducted to confirm the absence of viable alternatives?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. A thorough market analysis is essential to validate these claims. Without this information, it's difficult to ascertain if competitive options were truly unavailable or if the government simply opted for a non-competitive route, potentially leading to suboptimal pricing for taxpayers.
How does the per-unit cost of these C-17 aircrew training systems compare to similar training simulators for other aircraft or historical costs for comparable systems?
Benchmarking the cost of these training systems against similar simulators is crucial for assessing value. If costs are significantly higher than comparable systems, it indicates potential inefficiencies or overpricing. Without access to detailed cost breakdowns or comparative data, it's challenging to determine if the $73.8 million represents a fair price for the capabilities provided.
What mechanisms are in place to ensure the effectiveness and ongoing relevance of these training systems throughout their lifecycle, especially given the long duration of the contract?
Ensuring the effectiveness and relevance of training systems requires ongoing evaluation and potential updates. Given the contract duration, mechanisms for performance monitoring, incorporating technological advancements, and validating training outcomes are vital. Without clear metrics and oversight, there's a risk that the systems may become outdated or less effective over time, diminishing their value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
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
Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $103,190,402
Exercised Options: $73,757,917
Current Obligation: $73,757,917
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-20
Current End Date: 2015-05-15
Potential End Date: 2015-05-15 00:00:00
Last Modified: 2015-04-29
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