DoD awards Boeing $654.5M for Aircraft Navigation Systems, a follow-on to a competed action
Contract Overview
Contract Amount: $654,538,152 ($654.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2005-03-30
End Date: 2007-03-31
Contract Duration: 731 days
Daily Burn Rate: $895.4K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $654.5 million to THE BOEING COMPANY for work described as: Key points: 1. Significant award to a major defense contractor, Boeing. 2. Follow-on to a competed action suggests prior competition, but current competition level is unclear. 3. Risk associated with sole-source or limited competition for specialized defense systems. 4. Spending falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: good
The award amount of $654.5M is substantial. Without specific contract details or benchmarks for similar navigation systems, a precise value assessment is difficult. However, given it's a follow-on to a competed action, the pricing may reflect some level of market validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is a 'FOLLOW ON TO COMPETED ACTION', indicating that the original contract was competed. However, the current action being limited suggests that full and open competition may not have been pursued for this specific follow-on, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical defense systems. The level of competition directly influences the efficiency of this spending.
Public Impact
Ensures continued operational capability for Air Force aircraft navigation systems. Supports a major defense contractor and its supply chain. Potential for increased costs if competition was limited for this follow-on.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for follow-on action
- Potential for cost overruns if not closely managed
Positive Signals
- Award to established, experienced contractor
- Follow-on nature may indicate successful prior performance
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense and often involves complex, high-value systems.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of Defense has established oversight mechanisms for contracts. The 'FOLLOW ON TO COMPETED ACTION' designation suggests a history of oversight, but the specifics of current oversight for this limited action require further review.
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
- Limited competition
- Potential for cost creep on follow-on contracts
- Reliance on a single large contractor for critical systems
- Lack of detailed justification for limited competition
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 $654.5 million to THE BOEING COMPANY. See the official description on USAspending.
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 $654.5 million.
What is the period of performance?
Start: 2005-03-30. End: 2007-03-31.
What was the original contract award value and competition type?
The provided data indicates this is a follow-on to a competed action, but does not specify the original award value or the exact competition type for the initial contract. Understanding the history of competition and pricing for the base contract would provide valuable context for assessing the current award's value and fairness.
What specific factors justified limiting competition for this follow-on action?
The justification for limiting competition on this follow-on action is not detailed in the provided data. Typically, justifications might include technical requirements, unique capabilities, or urgent needs. Understanding these reasons is crucial for assessing whether the limited competition was appropriate and if it led to a fair price.
How does the unit cost of these navigation systems compare to industry benchmarks?
The provided data does not include specific unit cost information or comparable industry benchmarks for these navigation systems. A thorough analysis would require access to detailed pricing data and market research to determine if the per-unit cost is competitive and represents good value for the taxpayer.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-03-30
Current End Date: 2007-03-31
Potential End Date: 2007-03-31 00:00:00
Last Modified: 2012-02-22
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)