Boeing Awarded $849M for V-22 Osprey Airframes and Spares by Naval Air Systems Command
Contract Overview
Contract Amount: $849,367,985 ($849.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2000-06-20
End Date: 2010-01-05
Contract Duration: 3,486 days
Daily Burn Rate: $243.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: 200012!1700!001421!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001900C0183 !A!*!* !20000620!20031031!172316432!009256819!009256819!N!77272!THE BOEING COMPANY !ROUTE 291 & STEWART AVE. !RIDLEY PARK !PA!19078!03000!375!48!AMARILLO !POTTER !TEXAS !0001!+000067322589!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AVQ!V22 VERTICAL LIFT AIRCRAFT !3721!1!*!*!*!B!A!*!D !N!L!1!001!N!1A!A!N!A!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $849.4 million to THE BOEING COMPANY for work described as: 200012!1700!001421!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001900C0183 !A!*!* !20000620!20031031!172316432!009256819!009256819!N!77272!THE BOEING COMPANY !ROUTE 291 & STEWART AVE. !RIDLEY PARK !PA!19078!03000!375!48!AMARILLO !POT… Key points: 1. Significant contract value of over $849 million awarded to The Boeing Company. 2. Focus on V-22 Vertical Lift Aircraft airframes and spares indicates critical defense component procurement. 3. Contract awarded as 'Not Competed' raises questions about competition and potential price discovery. 4. The sector is Defense, specifically Aircraft Manufacturing, a high-value and complex industry.
Value Assessment
Rating: questionable
The contract value of $849,367,985.03 for aircraft airframes and spares is substantial. Without specific unit breakdowns or detailed cost breakdowns, it's difficult to benchmark against similar contracts. However, the 'Not Competed' status suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source (Not Competed) method. This limits price discovery and competition, potentially leading to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition for this substantial contract may result in taxpayers paying a premium for essential aircraft components.
Public Impact
Taxpayers may be overpaying for critical V-22 Osprey components due to the sole-source award. The long contract duration (2000-2010) suggests a sustained need for these parts, highlighting their importance. This award impacts the defense industrial base, specifically the manufacturing of advanced vertical lift aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value warrants close scrutiny of costs.
- Long contract duration could mask inefficiencies.
Positive Signals
- Addresses critical need for V-22 Osprey components.
- Award to established prime contractor (Boeing) suggests technical capability.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is typically high due to the complexity and strategic importance of military aviation. Benchmarks are difficult without specific component data, but large sole-source awards are often scrutinized.
Small Business Impact
The data indicates the award went to The Boeing Company, a large prime contractor. There is no explicit information about small business participation in this specific contract award, suggesting it may not have directly benefited small businesses.
Oversight & Accountability
The 'Not Competed' designation suggests a potential lapse in competitive sourcing. Further oversight would be needed to understand the justification for this sole-source award and ensure fair pricing and value for taxpayer money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- High contract value
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $849.4 million to THE BOEING COMPANY. 200012!1700!001421!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001900C0183 !A!*!* !20000620!20031031!172316432!009256819!009256819!N!77272!THE BOEING COMPANY !ROUTE 291 & STEWART AVE. !RIDLEY PARK !PA!19078!03000!375!48!AMARILLO !POTTER !TEXAS !0001!+000067322589!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AVQ!V22 VERTICAL LIFT AIRCRAFT !3721!1!*!*!*!B!A!*!D !N!L!
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 $849.4 million.
What is the period of performance?
Start: 2000-06-20. End: 2010-01-05.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific contract file and justification documentation, it's impossible to determine the precise reasons. However, for a contract of this magnitude and duration, a thorough review of the procurement process is warranted to ensure taxpayer funds were used efficiently and effectively.
How does the per-unit cost of these airframes and spares compare to similar components procured through competitive means?
Benchmarking the per-unit cost is challenging without detailed cost data and specific component identification. However, sole-source contracts inherently lack the price pressure that competition provides. It is highly probable that the per-unit cost is higher than if the contract had been competitively bid, representing a potential loss of value for the government and taxpayers.
What is the long-term strategic value and operational readiness impact of securing these V-22 Osprey airframes and spares through this contract?
Securing essential airframes and spares for the V-22 Osprey is crucial for maintaining the operational readiness and strategic capabilities of the U.S. military. The V-22 is a unique tiltrotor aircraft with significant operational roles. Ensuring a steady supply of these components, even through a sole-source contract, contributes directly to the longevity and effectiveness of this critical platform.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-06-20
Current End Date: 2010-01-05
Potential End Date: 2010-01-05 00:00:00
Last Modified: 2025-07-25
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