DoD's $2.5M Boeing Contract for Engineering Services Faces Scrutiny Amidst Limited Competition
Contract Overview
Contract Amount: $2,524,458 ($2.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-08-31
Contract Duration: 242 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMMON SUPPORT SERVICES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $2.5 million to THE BOEING COMPANY for work described as: COMMON SUPPORT SERVICES Key points: 1. Contract awarded to a single, large vendor, raising questions about competitive pricing. 2. Limited competition may lead to higher costs for taxpayers. 3. The contract duration of 242 days is relatively short, suggesting a focused scope. 4. Engineering services are critical for defense operations, but oversight is key.
Value Assessment
Rating: questionable
The contract's value of $2.5M for engineering services is difficult to benchmark without specific deliverables. However, the 'NOT COMPETED' status suggests potential for inflated pricing compared to a fully competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This significantly limits price discovery and may result in the government paying more than necessary.
Taxpayer Impact: The lack of competition directly impacts taxpayer value, as alternative, potentially lower-cost bids were not solicited.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these services, making cost-efficiency crucial. Transparency in sole-source awards is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing data
- Potential for cost overruns
Positive Signals
- Specific engineering services likely critical to mission
- Clear contract end date
Sector Analysis
Engineering services are vital for the Department of Defense, encompassing design, analysis, and technical support. Benchmarking requires comparison to similar specialized engineering contracts, which are often unique and difficult to price competitively.
Small Business Impact
This contract was awarded to The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific award, nor that subcontracting opportunities were mandated.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the pricing is fair and reasonable. Accountability rests with the contracting officers to justify the sole-source award and monitor performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing.
- Limited opportunity for small business participation.
- Cost-plus contract type can incentivize higher spending.
- No clear justification for not competing the award.
Tags
engineering-services, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.5 million to THE BOEING COMPANY. COMMON SUPPORT SERVICES
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 $2.5 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-08-31.
What specific engineering services are being procured, and how do they align with the justification for a sole-source award?
The specific engineering services are not detailed in the provided data. A sole-source award typically requires a strong justification, such as unique capabilities, urgent need, or lack of viable alternatives. Understanding the precise nature of the services is crucial to assessing whether competition was truly impossible or if it was simply not pursued.
What is the benchmark cost for similar engineering services within the Department of Defense or other government agencies?
Benchmarking similar engineering services is challenging due to the specialized nature of defense contracts and the variability in scope, complexity, and required expertise. Without detailed statements of work and performance metrics, establishing a precise per-unit cost benchmark is difficult. However, a competitive process generally yields prices within a reasonable range for the market.
What mechanisms are in place to ensure cost-effectiveness and prevent overpayment given the sole-source nature of this contract?
Mechanisms for ensuring cost-effectiveness in sole-source contracts often include rigorous negotiation, independent cost analysis by the government, and detailed review of the contractor's proposed costs. The contracting officer must ensure the price is fair and reasonable based on available data, historical pricing, or market research, even without competing bids.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,104,739
Exercised Options: $3,219,241
Current Obligation: $2,524,458
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868119D0005
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-08-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-01-12
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