DoD awards $99.4M for EA-18G Time Critical Parts, with Boeing as sole source
Contract Overview
Contract Amount: $993,773,458 ($993.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-12-23
End Date: 2015-08-31
Contract Duration: 2,442 days
Daily Burn Rate: $407.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TIME CRITICAL PARTS (TCP) IN SUPPORT OF EA-18G FRP (LOT 33) AEA KITS
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $993.8 million to THE BOEING COMPANY for work described as: TIME CRITICAL PARTS (TCP) IN SUPPORT OF EA-18G FRP (LOT 33) AEA KITS Key points: 1. Contract awarded to The Boeing Company for critical aircraft parts. 2. Significant spending on specialized components for the EA-18G Growler. 3. Sole-source award raises questions about competition and potential cost savings. 4. Long contract duration suggests ongoing support needs for the aircraft fleet.
Value Assessment
Rating: questionable
The contract value of $99.4M for 2442 days of support is difficult to benchmark without specific unit cost data. The firm-fixed-price structure aims to control costs, but the lack of competition limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This approach bypasses competitive bidding, potentially leading to higher prices than if multiple vendors were considered.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these critical parts.
Public Impact
Ensures continued operational readiness of the EA-18G Growler fleet. Supports a key component of naval aviation capabilities. Potential for increased costs due to lack of competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm-fixed-price contract
- Supports critical defense asset
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending benchmarks for such specialized components are highly variable and depend on technological complexity and production volume.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to a large prime contractor. Opportunities for small business subcontracting are not specified.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential cost overruns. Robust oversight is needed to track expenditures and validate the necessity of this procurement approach.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Long contract duration may obscure cost efficiencies.
- Limited transparency on specific part costs.
- No explicit small business participation noted.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $993.8 million to THE BOEING COMPANY. TIME CRITICAL PARTS (TCP) IN SUPPORT OF EA-18G FRP (LOT 33) AEA KITS
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 $993.8 million.
What is the period of performance?
Start: 2008-12-23. End: 2015-08-31.
What is the justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's unclear if alternatives were explored. However, the lack of competition raises concerns about whether taxpayers are receiving the best value, as competitive processes generally drive down prices and encourage innovation.
What are the specific risks associated with relying on a single supplier for these critical time-sensitive parts?
The primary risks include supply chain vulnerability, potential price gouging, and lack of innovation. If the sole supplier faces production issues, delays, or goes out of business, the EA-18G fleet's operational readiness could be severely impacted. Furthermore, without competitive pressure, the supplier may have less incentive to improve efficiency or offer cost reductions.
How does this contract contribute to the overall effectiveness and readiness of the EA-18G program?
This contract is crucial for maintaining the operational effectiveness and readiness of the EA-18G Growler, an electronic warfare aircraft vital for naval aviation. By ensuring the availability of Time Critical Parts (TCP) for AEA Kits, it directly supports the aircraft's mission capabilities, allowing it to perform its electronic attack and jamming functions reliably.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001908R0107
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,495,330,422
Exercised Options: $993,773,458
Current Obligation: $993,773,458
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-23
Current End Date: 2015-08-31
Potential End Date: 2015-08-31 00:00:00
Last Modified: 2015-07-20
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