Navy awards $1.2B contract to Boeing for aircraft structural component maintenance and repair

Contract Overview

Contract Amount: $12,030,728 ($12.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2005-06-06

End Date: 2010-09-30

Contract Duration: 1,942 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Defense

Official Description: 200512!293601!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0052 !A!N! !N! ! !20050606!20051130!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING !WASHINGTON!+000001061200!N!N!000006461200!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !541330!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1B!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1719!N00019!0001! !

Place of Performance

Location: KENT, KING County, WASHINGTON, 98032

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to THE BOEING COMPANY for work described as: 200512!293601!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0052 !A!N! !N! ! !20050606!20051130!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING… Key points: 1. The contract, valued at $1.2 billion, is for maintenance and repair of aircraft structural components. 2. The Boeing Company is the sole awardee, indicating a lack of competition for this specific contract. 3. The duration of the contract is over 1900 days, suggesting a long-term need for these services. 4. The sector is Defense, specifically for the Department of the Navy, highlighting critical aerospace support.

Value Assessment

Rating: fair

The contract value of $1.2 billion over approximately 5.3 years suggests a significant but potentially reasonable annual spend for specialized aircraft maintenance. Benchmarking against similar long-term maintenance contracts for complex aerospace structures is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices as there is no market pressure to offer the best value. The lack of competition raises concerns about price discovery and potential overspending.

Taxpayer Impact: The sole-source nature of this large contract means taxpayers may not be receiving the most cost-effective solution available, as competitive bidding was bypassed.

Public Impact

Ensures continued operational readiness for naval aircraft by maintaining critical structural components. Supports a major aerospace manufacturer, potentially impacting jobs and the broader defense industrial base. Highlights the significant investment required for the sustainment of advanced military aviation assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Long contract duration may not reflect current market conditions.
Lack of detailed cost breakdown makes value assessment difficult.

Positive Signals

Addresses a critical need for aircraft maintenance.
Supports a key defense contractor.
Ensures operational capability of naval assets.

Sector Analysis

This contract falls within the Engineering Services sector, specifically for the maintenance and repair of aircraft structural components for the Department of the Navy. Defense contracts of this magnitude often involve specialized, high-value services where long-term relationships and unique capabilities can influence procurement methods.

Small Business Impact

The awardee is The Boeing Company, a large aerospace corporation. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to confirm the justification for bypassing competitive procedures and to ensure the pricing is fair and reasonable given the lack of market competition.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Long-Term Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to THE BOEING COMPANY. 200512!293601!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0052 !A!N! !N! ! !20050606!20051130!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING !WASHINGTON!+000001061200!N!N!000006461200!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !541330!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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2005-06-06. End: 2010-09-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition within the required timeframe. For this contract, the specific rationale would need to be detailed in the contract award documentation, likely citing Boeing's unique position as the original manufacturer or a specialized service provider for these specific aircraft structural components.

How does the per-unit cost compare to similar maintenance contracts for naval aircraft?

Without specific per-unit cost data or access to comparable contracts, a direct comparison is not possible. However, sole-source contracts are inherently at higher risk for inflated pricing due to the absence of competitive pressure. A thorough cost analysis by the agency would be necessary to validate the reasonableness of the pricing against industry benchmarks or historical data for similar services.

What is the long-term impact on naval aviation readiness and budget if this sole-source arrangement continues?

Continuing sole-source arrangements for critical maintenance can lead to escalating costs over time and potentially stifle innovation from other service providers. While ensuring readiness, it may strain the Navy's budget if more cost-effective alternatives are not explored. Long-term strategic sourcing reviews should be conducted to assess competitive options.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Address: 7755 E MARGINAL WAY, SEATTLE, WA, 07

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline