DoD awards Boeing $460M for Aircraft Manufacturing under sole-source contract
Contract Overview
Contract Amount: $460,167,266 ($460.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2006-03-22
End Date: 2013-05-31
Contract Duration: 2,627 days
Daily Burn Rate: $175.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $460.2 million to THE BOEING COMPANY for work described as: Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises concerns about price. 3. Long contract duration may indicate complex needs. 4. Potential for cost overruns due to fixed-price structure.
Value Assessment
Rating: questionable
The contract's large value and lack of competition make it difficult to assess value for money without further data. Benchmarking against similar sole-source aircraft manufacturing contracts would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The absence of competition suggests taxpayers may not be receiving the best possible price for these aircraft.
Public Impact
Taxpayers may be overpaying due to lack of competition. Potential impact on the defense industrial base if Boeing is the only viable supplier. Long-term commitment to a single provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for cost escalation
Positive Signals
- Firm fixed price contract type
- Award to established prime contractor
Sector Analysis
This award falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs and long production cycles.
Small Business Impact
No indication of small business participation is provided in the data. Large sole-source contracts often have limited direct subcontracting opportunities for small businesses.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in ensuring competitive sourcing. Further review of the justification for sole-source award is warranted.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for cost overruns
- Limited transparency on justification
Tags
aircraft-manufacturing, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $460.2 million to THE BOEING COMPANY. See the official description on USAspending.
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 $460.2 million.
What is the period of performance?
Start: 2006-03-22. End: 2013-05-31.
What was 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 the absence of other responsible sources. Without specific documentation, it's impossible to determine the exact reason, but it implies that competitive alternatives were not available or feasible at the time of procurement.
What are the risks associated with a sole-source contract of this magnitude and duration?
The primary risks include inflated pricing due to lack of competition, reduced innovation incentives for the contractor, and potential vendor lock-in. There's also a risk that the government's needs might evolve, making the fixed terms of the contract less suitable over its long duration.
How can the government ensure value for money on this contract despite it being sole-source?
The government can employ robust contract management, including detailed cost analysis, performance monitoring, and negotiation of favorable terms. Exercising options judiciously and seeking competitive bids for future, similar requirements can also help mitigate the risks of sole-source awards.
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: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-03-22
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2021-04-15
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