DoD Awards Boeing $153.4M for Navigation Systems Amidst Sole-Source Concerns
Contract Overview
Contract Amount: $153,400,847 ($153.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-11-01
End Date: 2020-01-10
Contract Duration: 3,357 days
Daily Burn Rate: $45.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 7 PRODUCTION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $153.4 million to THE BOEING COMPANY for work described as: LOT 7 PRODUCTION Key points: 1. Significant award to a single large contractor, raising questions about competition. 2. Long contract duration (3357 days) may obscure current market value. 3. Firm Fixed Price contract type offers cost certainty but limits flexibility. 4. Focus on critical navigation systems highlights defense sector importance.
Value Assessment
Rating: questionable
The $153.4M award over 3357 days for navigation systems lacks clear benchmarks for comparison. Without competitive data, assessing if this price is optimal is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a substantial contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single supplier for critical defense technology poses a potential risk. The long-term nature of the contract could mean outdated technology at a high price.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation indicated
Positive Signals
- Firm Fixed Price contract
- Award to established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically for navigation systems manufacturing. Spending in this area is critical for national security, but often involves specialized, high-cost components.
Small Business Impact
The data indicates no specific small business participation for this contract. Large sole-source awards often bypass opportunities for small businesses to compete.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The long duration necessitates ongoing monitoring by the Department of Defense.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Risk of technological obsolescence over the contract's long term.
- Lack of small business participation.
- Limited transparency in pricing due to non-competitive nature.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.4 million to THE BOEING COMPANY. LOT 7 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $153.4 million.
What is the period of performance?
Start: 2010-11-01. End: 2020-01-10.
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 difficult to ascertain the precise rationale, but it often stems from the specialized nature of defense systems and the perceived inability of other firms to meet the technical specifications or delivery timelines.
How does the unit cost compare to similar navigation systems procured competitively?
Direct comparison of unit cost is challenging without access to competitive benchmarks for identical or highly similar navigation systems. Sole-source awards inherently lack this comparative data point. A thorough review would require market research into comparable systems acquired through competitive processes, adjusted for technical specifications and contract terms, to estimate potential cost savings.
What measures are in place to ensure the effectiveness and technological relevance of these systems over the contract's long duration?
Effectiveness and relevance over a long duration are typically managed through contract clauses allowing for technical refresh, performance reviews, and potential modifications. The Department of Defense would likely have oversight mechanisms to track system performance and obsolescence. However, the firm fixed-price nature might limit incentives for proactive upgrades unless explicitly negotiated or mandated.
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, 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: $153,727,545
Exercised Options: $153,400,847
Current Obligation: $153,400,847
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-11-01
Current End Date: 2020-01-10
Potential End Date: 2020-01-10 00:00:00
Last Modified: 2021-04-12
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