DoD Awards Boeing $142M for Search, Detection, Navigation Systems Amidst Limited Competition
Contract Overview
Contract Amount: $141,982,974 ($142.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-12-15
End Date: 2012-12-31
Contract Duration: 1,112 days
Daily Burn Rate: $127.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 6 PRODUCTION SDB I
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $142.0 million to THE BOEING COMPANY for work described as: LOT 6 PRODUCTION SDB I Key points: 1. Significant award to a single large defense contractor. 2. Focus on critical aerospace systems manufacturing. 3. Potential for cost overruns due to limited competition. 4. High value contract in the defense sector.
Value Assessment
Rating: fair
The contract value of $141.98M for LOT 6 PRODUCTION SDB I appears substantial. Benchmarking against similar complex aerospace systems contracts is difficult without more specific data on the SDB I system's components and capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This approach may have been driven by specialized requirements or existing contractor capabilities, but it limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition could lead to higher prices than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Ensures continued production of critical navigation and guidance systems for the Air Force. Supports jobs at The Boeing Company and its supply chain. Potential for follow-on contracts if the SDB I system is successful.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of specific PSC code
- No small business participation indicated
Positive Signals
- Award to established prime contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on advanced navigation and guidance systems. Spending in this area is typically high due to the complexity and critical nature of the equipment.
Small Business Impact
There is no indication of small business participation in this contract. Given the prime contractor and the nature of the work, it's possible that subcontracting opportunities for small businesses were not prioritized or identified.
Oversight & Accountability
The contract was awarded by the Department of the Air Force. Oversight would focus on production quality, delivery schedules, and adherence to the firm fixed price terms to ensure taxpayer funds are used effectively.
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 justification unclear
- Potential for cost creep without competition
- No small business set-aside identified
- Limited transparency on system capabilities
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 $142.0 million to THE BOEING COMPANY. LOT 6 PRODUCTION SDB I
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 $142.0 million.
What is the period of performance?
Start: 2009-12-15. End: 2012-12-31.
What is the specific capability and performance of the SDB I system to justify a non-competed award?
The specific capabilities of the SDB I system are not detailed in the provided data. However, non-competed awards for such systems often stem from unique technological requirements, proprietary designs, or the need for seamless integration with existing platforms where only one contractor possesses the necessary expertise and intellectual property.
What are the long-term cost implications of awarding this contract without competition?
Awarding without competition can lead to higher long-term costs if the initial pricing was not optimized through market forces. Without competitive pressure, the contractor may have less incentive to reduce costs over the contract's life, potentially requiring future appropriations at inflated rates or necessitating costly re-competition later.
How does this contract contribute to the overall effectiveness of Air Force operations?
This contract contributes to the effectiveness of Air Force operations by ensuring the continued availability of critical search, detection, and navigation systems. These systems are vital for mission success, pilot safety, and operational readiness across various Air Force platforms, enabling precise navigation and situational awareness.
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: $145,842,312
Exercised Options: $141,982,974
Current Obligation: $141,982,974
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-15
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2012-06-19
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