DoD Awards Boeing $122M for Lot 5 Production of Aircraft Navigation Systems
Contract Overview
Contract Amount: $122,428,296 ($122.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-12-10
End Date: 2011-02-28
Contract Duration: 810 days
Daily Burn Rate: $151.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 5 PRODUCTION
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $122.4 million to THE BOEING COMPANY for work described as: LOT 5 PRODUCTION Key points: 1. Significant contract value of $122.4 million awarded to a single, large defense contractor. 2. Sole-source award raises questions about competition and potential for price optimization. 3. Contract duration of 810 days suggests a substantial production run. 4. Focus on critical aircraft navigation systems highlights national security implications.
Value Assessment
Rating: questionable
The contract value of $122.4 million for Lot 5 production is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar navigation systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competed contract.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these critical navigation systems.
Public Impact
Ensures continued availability of essential navigation systems for Air Force aircraft. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Highlights the reliance on a single provider for critical aerospace components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Ensures critical system availability
- Supports established contractor
Sector Analysis
This contract falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. Spending in this area is crucial for national defense, but often involves high-value, specialized components where competition can be limited.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses in this particular procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair and reasonable pricing. Further oversight may be needed to confirm the necessity of a sole-source approach.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency in cost justification
- Dependency on a single contractor
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.4 million to THE BOEING COMPANY. LOT 5 PRODUCTION
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 $122.4 million.
What is the period of performance?
Start: 2008-12-10. End: 2011-02-28.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of adequate competition. Without specific documentation, it's difficult to ascertain the precise reasons, but it implies that only The Boeing Company could fulfill the requirement at the time of procurement.
How does the $122.4 million price compare to similar navigation system contracts?
Benchmarking this $122.4 million contract is challenging due to its sole-source nature and specific application. Without access to pricing data from competitive procurements of comparable navigation systems, it's impossible to definitively state if this price is higher or lower than market alternatives. Further analysis would require access to more detailed cost breakdowns and competitive bid information.
What is the long-term impact of relying on a single supplier for these critical systems?
Long-term reliance on a single supplier can create vulnerabilities, including potential supply chain disruptions, reduced innovation due to lack of competition, and increased pricing power for the supplier. It also limits the government's flexibility in seeking alternative solutions or leveraging new technologies that may emerge from a more competitive market.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: WEAPONS
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 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,428,296
Exercised Options: $122,428,296
Current Obligation: $122,428,296
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-10
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2011-01-19
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