Boeing awarded $23.2M contract for aircraft manufacturing by the Department of Defense
Contract Overview
Contract Amount: $23,203,074 ($23.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-03-04
End Date: 2012-01-27
Contract Duration: 694 days
Daily Burn Rate: $33.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPLIES
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to THE BOEING COMPANY for work described as: SUPPLIES Key points: 1. Contract awarded for aircraft manufacturing services. 2. The contract has a duration of 694 days. 3. The contract was awarded by the Department of Defense. 4. The contractor is THE BOEING COMPANY. 5. The contract type is DEFINITIVE CONTRACT. 6. The pricing type is FIRM FIXED PRICE.
Value Assessment
Rating: fair
This contract for aircraft manufacturing was awarded to THE BOEING COMPANY for a total of $23.2 million. Without more specific details on the deliverables and performance metrics, it is difficult to benchmark the value for money effectively. However, given the nature of aircraft manufacturing, the price appears to be within a reasonable range for specialized defense production. Further analysis would require comparing the specific aircraft model and quantities to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source procurement method, meaning only one bidder was solicited. This approach is typically used when there are unique capabilities or proprietary technologies involved, or in cases of urgent need where competition is not feasible. The lack of competition means that price discovery through market forces was limited, potentially leading to a higher price than if multiple bids had been considered.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not benefit from the cost-saving pressures that typically arise from a competitive procurement process.
Public Impact
The Department of Defense benefits from the acquisition of aircraft manufacturing services. This contract supports the defense industrial base and national security. The contract is geographically located in Arizona, potentially impacting the local workforce and economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Lack of transparency in the selection process due to sole-sourcing.
Positive Signals
- Contract awarded to a major defense contractor with established capabilities.
- Firm fixed price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the broader aerospace and defense industry. The market for specialized defense aircraft is characterized by high barriers to entry, significant R&D investment, and a limited number of qualified suppliers. Spending in this sector is heavily influenced by government defense budgets and geopolitical factors. Comparable spending benchmarks would involve analyzing other large-scale aircraft procurement contracts within the Department of Defense.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of aircraft manufacturing and the sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal. However, the prime contractor may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which places the cost risk on the contractor. Transparency is limited due to the sole-source nature of the award.
Related Government Programs
- Aircraft Procurement
- Defense Manufacturing
- Aerospace Industry Contracts
Risk Flags
- Sole-source award
- Potential for higher costs due to lack of competition
Tags
defense, department-of-defense, aircraft-manufacturing, the-boeing-company, definitive-contract, firm-fixed-price, sole-source, arizona, 336411, large-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to THE BOEING COMPANY. SUPPLIES
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 $23.2 million.
What is the period of performance?
Start: 2010-03-04. End: 2012-01-27.
What specific type of aircraft is being manufactured under this contract?
The provided data does not specify the exact type of aircraft being manufactured under this $23.2 million contract. The North American Industry Classification System (NAICS) code 336411 indicates 'Aircraft Manufacturing,' which is a broad category. To understand the value and impact more precisely, knowing the specific aircraft model (e.g., fighter jet, transport plane, drone) and the quantities ordered would be essential. This level of detail is often found in the contract's statement of work or technical specifications, which are not included in the summary data.
How does the $23.2 million contract value compare to similar aircraft manufacturing contracts awarded by the DoD?
Benchmarking the $23.2 million contract value requires comparing it to similar procurements for the same or comparable aircraft types and quantities. Given that this is a sole-source award for aircraft manufacturing, it's likely for a specialized or unique platform. Without knowing the specific aircraft, a direct comparison is challenging. However, large-scale aircraft programs can range from tens of millions for smaller components or upgrades to billions for entire fleets of advanced aircraft. This $23.2 million figure suggests a relatively modest contract, possibly for a limited production run, specific modifications, or a particular subsystem rather than a major new aircraft program.
What are the primary risks associated with this sole-source aircraft manufacturing contract?
The primary risks associated with this sole-source aircraft manufacturing contract include potential cost overruns if the fixed price does not adequately account for unforeseen manufacturing challenges, and a lack of competitive pressure that could lead to suboptimal pricing. There's also a risk related to contractor performance; if THE BOEING COMPANY faces production delays or quality issues, it could impact the Department of Defense's operational readiness. Furthermore, reliance on a single source can create vulnerabilities in the supply chain and reduce flexibility in adapting to changing requirements. The government's ability to negotiate favorable terms is also diminished without competition.
What is the track record of THE BOEING COMPANY in fulfilling similar Department of Defense aircraft manufacturing contracts?
THE BOEING COMPANY has a long and extensive track record of fulfilling aircraft manufacturing contracts for the Department of Defense, spanning decades and encompassing a wide range of aircraft types, from fighter jets and bombers to transport planes and helicopters. They are one of the largest defense contractors globally. While generally considered a reliable supplier, Boeing has also faced scrutiny and challenges on various programs related to production timelines, cost overruns, and technical issues. A detailed review of their past performance on contracts with similar scope, complexity, and value would be necessary to fully assess their suitability and reliability for this specific award.
What are the historical spending patterns for aircraft manufacturing by the Department of Defense?
Historical spending patterns for aircraft manufacturing by the Department of Defense are substantial and fluctuate based on strategic priorities, technological advancements, and budget allocations. The DoD consistently invests billions of dollars annually in acquiring, developing, and maintaining aircraft platforms. This spending covers a wide spectrum, from research and development of next-generation aircraft to the procurement of existing models, upgrades, and sustainment services. Major spending often centers on fighter jets, bombers, transport aircraft, and unmanned aerial vehicles (UAVs). The overall trend reflects a continuous need for air superiority and strategic mobility, driving significant and ongoing investment in this sector.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: 5000 E MCDOWELL RD, MESA, AZ, 85215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,203,074
Exercised Options: $23,203,074
Current Obligation: $23,203,074
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-03-04
Current End Date: 2012-01-27
Potential End Date: 2012-01-27 00:00:00
Last Modified: 2018-09-12
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