Navy Awards $150M for Aircraft Manufacturing, Boeing Dominates

Contract Overview

Contract Amount: $47,799,100 ($47.8M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2005-03-31

End Date: 2011-05-06

Contract Duration: 2,227 days

Daily Burn Rate: $21.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200506!181351!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0025 !A!N! !N! ! !20050331!20080502!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000018946207!N!N!000033485932!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !240 !T 45TS !336411!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1G!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1700!N00019!0001! !

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $47.8 million to THE BOEING COMPANY for work described as: 200506!181351!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0025 !A!N! !N! ! !20050331!20080502!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. … Key points: 1. The contract is for aircraft manufacturing, a significant sector within defense. 2. Boeing is the sole awardee, indicating a lack of competition for this specific contract. 3. The contract's value of $150M presents a substantial financial commitment. 4. The fixed-price nature of the contract shifts risk to the contractor.

Value Assessment

Rating: fair

The contract value of $149,879,157 is substantial. Benchmarking against similar aircraft manufacturing contracts is difficult without more specific details on the aircraft type and scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $150M contract raises concerns about whether the government achieved the best possible price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The reliance on a single contractor could impact future innovation and pricing. This award highlights potential areas for improved procurement strategies within the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Firm fixed price contract shifts risk
Long contract duration

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing. Defense spending on aircraft is a major component of the federal budget, with significant investments in R&D and procurement.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value and that competition was appropriately considered.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for overpayment
Sole-source award justification
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.8 million to THE BOEING COMPANY. 200506!181351!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0025 !A!N! !N! ! !20050331!20080502!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000018946207!N!N!000033485932!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !240 !T 45TS !336411!E! !3! ! ! ! ! !202

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 $47.8 million.

What is the period of performance?

Start: 2005-03-31. End: 2011-05-06.

What specific factors justified the sole-source award, and were alternatives explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's difficult to assess if all avenues for competition were exhausted or if the justification was robust enough to warrant bypassing the competitive process.

How does the per-unit cost of this aircraft manufacturing contract compare to industry benchmarks?

Determining a precise per-unit cost benchmark is challenging without knowing the exact specifications, quantity, and complexity of the aircraft or equipment being manufactured. However, given the sole-source nature, there's a risk that the price may be higher than what could have been achieved through a competitive bidding process.

What is the long-term strategic impact of awarding such a large contract to a single supplier?

Awarding large, sole-source contracts to a single supplier can create dependency and potentially stifle innovation by reducing market pressure. It may also limit the government's flexibility in adapting to new technologies or changing requirements in the future.

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: 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: NO

Timeline