DoD Awards $79.4M Boeing Contract for Aircraft Manufacturing, Lacking Competition
Contract Overview
Contract Amount: $79,415,631 ($79.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-12-18
End Date: 2011-12-15
Contract Duration: 727 days
Daily Burn Rate: $109.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C 40 BUY PLAN
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67210
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $79.4 million to THE BOEING COMPANY for work described as: C 40 BUY PLAN Key points: 1. Significant contract value of $79.4 million awarded to The Boeing Company. 2. Sole-source award indicates a lack of competitive bidding. 3. Potential for higher costs due to limited competition. 4. Aircraft manufacturing sector is critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $79.4 million for aircraft manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
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 the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this contract for critical aircraft manufacturing. Potential impact on the broader aerospace industry if competition is consistently avoided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Sole-source award
Positive Signals
- Critical defense procurement
- Award to established manufacturer
Sector Analysis
This contract falls within the aircraft manufacturing sector, a key component of the defense industrial base. Spending in this area is often driven by national security needs, but competitive pricing is crucial.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a focus on large prime contractors for this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that justification for non-competition is robust.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency in price negotiation
Tags
aircraft-manufacturing, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $79.4 million to THE BOEING COMPANY. C 40 BUY PLAN
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 $79.4 million.
What is the period of performance?
Start: 2009-12-18. End: 2011-12-15.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed that the Air Force determined Boeing was the only viable option for this particular aircraft manufacturing requirement, potentially due to specialized expertise or existing platform integration.
What is the risk of cost escalation in sole-source contracts?
Sole-source contracts carry a higher risk of cost escalation because the government lacks the leverage of competitive bidding. Contractors may have less incentive to control costs or offer the lowest possible price when they know they are the only option. This necessitates rigorous cost analysis and oversight by the procuring agency to mitigate potential overspending.
How does this contract contribute to the Air Force's operational effectiveness?
This contract directly supports the Air Force's operational effectiveness by ensuring the manufacturing of critical aircraft. The specific type of aircraft and its role would determine the extent of its contribution, but maintaining a robust fleet requires consistent manufacturing and sustainment, which this contract aims to provide.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 07
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $79,415,631
Exercised Options: $79,415,631
Current Obligation: $79,415,631
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-18
Current End Date: 2011-12-15
Potential End Date: 2011-12-15 00:00:00
Last Modified: 2011-11-08
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