Boeing Awarded $13.5M for Navy Production Engineering FOT&E, No Competition
Contract Overview
Contract Amount: $13,467,753 ($13.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-11-29
End Date: 2019-12-01
Contract Duration: 367 days
Daily Burn Rate: $36.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRODUCTION ENGINEERING FOT&E PERIOD 18
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to THE BOEING COMPANY for work described as: PRODUCTION ENGINEERING FOT&E PERIOD 18 Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Boeing raises questions about competition. 3. Potential risk associated with single-vendor reliance for critical engineering. 4. Aircraft manufacturing sector context for this specialized support.
Value Assessment
Rating: questionable
The contract value of $13.5M for an 18-month period is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized engineering services.
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 limits price discovery and may result in a higher cost than if multiple vendors had vied for the work.
Taxpayer Impact: Taxpayer funds are being expended without the benefit of competitive pricing, potentially leading to a less efficient use of resources.
Public Impact
Specialized engineering support for naval aircraft production. Potential impact on future defense procurement strategies. Ensuring technological advancement in aircraft manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
Positive Signals
- Supports critical production engineering
- Established contractor with relevant expertise
Sector Analysis
This contract falls within the aircraft manufacturing sector, a high-value and technologically intensive industry. Spending benchmarks for specialized engineering support can vary widely based on project scope and complexity.
Small Business Impact
The awardee is The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific sole-source contract, nor is it likely given the nature of the award.
Oversight & Accountability
Oversight is crucial for cost-plus fixed-fee contracts, especially sole-source awards, to ensure that costs are reasonable and that the contractor is meeting performance objectives effectively.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency in pricing
Tags
aircraft-manufacturing, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to THE BOEING COMPANY. PRODUCTION ENGINEERING FOT&E PERIOD 18
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 $13.5 million.
What is the period of performance?
Start: 2018-11-29. End: 2019-12-01.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear why this contract was not competed. Agencies should explore competitive options whenever possible to ensure best value and taxpayer savings.
How does the cost-plus fixed-fee structure impact the contractor's incentive to control costs on this project?
Cost-plus fixed-fee contracts provide the contractor with reimbursement for allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor is incentivized to manage costs to maximize profit. However, the government bears the risk of cost overruns, making robust oversight essential.
What are the long-term implications of relying on a single vendor for critical production engineering functions?
Long-term reliance on a single vendor can lead to a loss of institutional knowledge within the government, reduced bargaining power, and potential supply chain vulnerabilities. It also limits opportunities for innovation and competition from other qualified firms in the future.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,883,219
Exercised Options: $13,883,219
Current Obligation: $13,467,753
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $873,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2018-11-29
Current End Date: 2019-12-01
Potential End Date: 2019-12-01 00:00:00
Last Modified: 2025-09-23
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)