DoD awards Boeing $48.8M for Aircraft Navigation Systems, a sole-source contract with limited competition
Contract Overview
Contract Amount: $48,792,387 ($48.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2005-10-31
End Date: 2007-09-30
Contract Duration: 699 days
Daily Burn Rate: $69.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: SAINT CHARLES, ST. CHARLES County, MISSOURI, 63301
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $48.8 million to THE BOEING COMPANY for work described as: Key points: 1. Significant award to a major defense contractor, Boeing. 2. Contract focuses on critical aircraft navigation and guidance systems. 3. Sole-source nature raises questions about price discovery and competition. 4. Long contract duration (699 days) may impact adaptability to evolving needs.
Value Assessment
Rating: questionable
The award value of $48.8M for aircraft navigation systems appears high given the 'NOT COMPETED' status. Benchmarking against similar sole-source contracts for specialized aerospace components is difficult without more data, but the lack of competition suggests potential for inflated pricing.
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 taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these critical aircraft navigation systems.
Public Impact
Ensures continued operation and maintenance of essential Air Force navigation systems. Supports a major defense contractor, impacting jobs and the aerospace industrial base. Potential for higher costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may not reflect current market conditions.
- Lack of transparency in pricing due to non-competitive nature.
Positive Signals
- Award supports critical defense capabilities.
- Contract awarded to a well-established and experienced provider.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of navigation and guidance systems. Spending in this area is critical for national security, but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
This contract was awarded directly to a large prime contractor, THE BOEING COMPANY. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Robust justification for the lack of competition should be maintained and accessible.
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 lacks competitive pricing.
- Potential for cost overruns due to limited oversight.
- Long contract duration may lead to outdated technology.
- Limited transparency on pricing justification.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.8 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 $48.8 million.
What is the period of performance?
Start: 2005-10-31. End: 2007-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the Department of Defense would need to provide documentation detailing why competition was not feasible, such as the specialized nature of the navigation systems or a lack of alternative qualified suppliers. Exploring alternative solutions is a standard part of the procurement process, even for sole-source awards, to ensure the government is obtaining the best value.
How does the $48.8M award value compare to industry benchmarks for similar navigation systems, especially considering the sole-source nature?
Benchmarking this $48.8M award is challenging due to its sole-source status and the specialized nature of aircraft navigation systems. Without competitive bids, it's difficult to establish a true market price. However, a comparison against historical sole-source contracts for similar, complex aerospace components could reveal if the pricing is within an expected range for non-competitive awards. If it significantly exceeds benchmarks for comparable sole-source procurements, it raises concerns about potential overpricing.
What measures are in place to ensure the effectiveness and reliability of these navigation systems over the contract's duration?
Effectiveness and reliability are typically ensured through stringent performance specifications, quality assurance clauses, and acceptance testing outlined in the contract. For navigation systems, this would include requirements for accuracy, durability, and compliance with aviation standards. The Department of the Air Force would likely conduct regular inspections and performance reviews to monitor the systems' adherence to these specifications throughout the contract period and beyond.
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: NOT COMPETED
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
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-10-31
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-05-06
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