DoD awards $22.8M for Aircraft Manufacturing spares, with Boeing Distribution Inc. as contractor
Contract Overview
Contract Amount: $22,769,019 ($22.8M)
Contractor: Boeing Distribution, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-20
End Date: 2014-06-01
Contract Duration: 619 days
Daily Burn Rate: $36.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROCURE COMMERICAL COMMON SPARES IN SUPPORT OF LRIP LOT III.
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75261
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.8 million to BOEING DISTRIBUTION, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROCURE COMMERICAL COMMON SPARES IN SUPPORT OF LRIP LOT III. Key points: 1. Contract awarded to Boeing Distribution, Inc. for common spares. 2. Full and open competition was utilized. 3. The contract is for LRIP Lot III support. 4. Firm Fixed Price contract type. 5. Significant value for aircraft manufacturing spares.
Value Assessment
Rating: good
The contract value of $22.8M for aircraft spares appears reasonable given the scope of LRIP Lot III support. Benchmarking against similar large-scale spare parts procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for necessary aircraft spares.
Public Impact
Ensures availability of critical aircraft components for military readiness. Supports the production phase (LRIP Lot III) of aircraft. Benefits the aerospace manufacturing sector through component supply.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future contracts.
- Dependence on a single supplier for specific common spares.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type provides cost certainty.
- Supports critical defense manufacturing.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for common spares in this industry typically vary based on aircraft type and production stage.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to Boeing Distribution, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense and managed by the Defense Contract Management Agency, indicating established oversight mechanisms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration is relatively long (619 days).
- Potential for price increases in follow-on contracts.
- Limited visibility into subcontractor performance.
- Dependence on a single awardee for critical spares.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to BOEING DISTRIBUTION, INC.. THE PURPOSE OF THIS CONTRACT IS TO PROCURE COMMERICAL COMMON SPARES IN SUPPORT OF LRIP LOT III.
Who is the contractor on this award?
The obligated recipient is BOEING DISTRIBUTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2012-09-20. End: 2014-06-01.
What is the projected cost savings from using full and open competition for these common spares?
While full and open competition is generally expected to yield cost savings, the exact amount is not specified. The process allows for multiple bids, theoretically driving down prices compared to sole-source or limited competition. A detailed cost-benefit analysis or comparison with historical sole-source procurements would be necessary to quantify these savings.
What are the risks associated with relying on Boeing Distribution, Inc. for these critical spares?
The primary risk is potential supply chain disruption if Boeing Distribution, Inc. faces production issues or financial instability. Dependence on a single entity could also lead to less favorable pricing in future negotiations. The government should monitor the contractor's performance and explore alternative sourcing options to mitigate these risks.
How does the firm fixed price contract type ensure value for money in this scenario?
The Firm Fixed Price (FFP) contract type shifts most of the risk to the contractor, ensuring the government pays a set price regardless of the contractor's actual costs. This provides cost certainty and incentivizes the contractor to manage their expenses efficiently to maximize profit, thereby ensuring value for money for the government.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001912R3001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 2750 REGENT BLVD, DALLAS, TX, 75261
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,769,019
Exercised Options: $22,769,019
Current Obligation: $22,769,019
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-20
Current End Date: 2014-06-01
Potential End Date: 2014-06-01 00:00:00
Last Modified: 2018-07-27
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