Boeing Awarded $11.8M for Navy Aircraft Manufacturing, Lacking Competition
Contract Overview
Contract Amount: $11,810,368 ($11.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-08-06
End Date: 2026-03-31
Contract Duration: 2,063 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CAPSULE REFURBISHMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to THE BOEING COMPANY for work described as: CAPSULE REFURBISHMENT Key points: 1. Significant contract value of $11.8 million awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract is for aircraft manufacturing, a sector with established players. 4. Long duration of 2063 days suggests a substantial, ongoing requirement.
Value Assessment
Rating: questionable
The contract value of $11.8 million for aircraft manufacturing is difficult to benchmark without specific details on the refurbishment scope. However, the lack of competition suggests potential for prices above market rates.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these aircraft refurbishment services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Navy's reliance on a single provider could create future dependency. Limited transparency into the pricing structure due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Sole-source award
Positive Signals
- Award to established large business
- Firm fixed price contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is dominated by large aerospace companies. Spending benchmarks for refurbishment can vary widely based on the complexity and age of the aircraft.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for their participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Oversight should focus on validating the necessity of the sole-source justification and the reasonableness of the price.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source award
- Limited transparency
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to THE BOEING COMPANY. CAPSULE REFURBISHMENT
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 $11.8 million.
What is the period of performance?
Start: 2020-08-06. End: 2026-03-31.
What was the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Price reasonableness is usually assessed through cost analysis, comparison to historical data, or market research. Without the specific justification document, it's impossible to confirm the rationale or the methods used to ensure a fair price for this $11.8 million contract.
What are the potential risks associated with a sole-source contract for aircraft refurbishment, particularly concerning long-term maintenance and future procurements?
Sole-source contracts can lead to vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future negotiation leverage and increasing costs. For aircraft refurbishment, this could mean higher prices for parts, specialized labor, and follow-on services. It also reduces opportunities for innovation and competition that could drive down costs or improve service quality over the life of the aircraft.
How does this contract align with the Department of Defense's goals for promoting competition and ensuring cost-effectiveness in its procurements?
This sole-source award appears to contradict the Department of Defense's stated goals of maximizing competition to achieve best value and cost savings. While sole-source awards are sometimes necessary, they should be exceptions rather than the norm. The lack of competition here suggests a potential missed opportunity to leverage market forces for better pricing and potentially more innovative solutions for aircraft refurbishment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: GUIDED MISSLES
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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,810,368
Exercised Options: $11,810,368
Current Obligation: $11,810,368
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $7,114,906
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2020-08-06
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-12
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