Boeing Awarded $26M for Aircraft Integration NRE, Boosting Defense Sector Spending
Contract Overview
Contract Amount: $26,022,194 ($26.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-06-25
End Date: 2025-02-28
Contract Duration: 1,709 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ECP-6516 AIRCRAFT INTEGRATION NRE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63110
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to THE BOEING COMPANY for work described as: ECP-6516 AIRCRAFT INTEGRATION NRE Key points: 1. Significant contract value of $26 million for aircraft integration. 2. Sole awardee is The Boeing Company, indicating potential lack of broader competition. 3. Risk associated with a single contractor for critical integration work. 4. Spending concentrated in the Aircraft Manufacturing sector.
Value Assessment
Rating: good
The contract value of $26 million for NRE (Non-Recurring Engineering) appears reasonable for specialized aircraft integration. Benchmarking against similar complex integration projects is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity, Boeing, warrants further investigation into the specific technical requirements and market landscape.
Taxpayer Impact: Taxpayer funds are being utilized for advanced aircraft integration, aiming to enhance defense capabilities. The competitive award process is intended to ensure value for money.
Public Impact
Enhances U.S. Navy's aircraft capabilities through advanced integration. Supports a major defense contractor, potentially impacting jobs and supply chains. Investment in technology development with long-term strategic implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single integrator.
- Dependence on Boeing for critical integration expertise.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense modernization efforts.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key area for defense spending. Benchmarks for NRE in complex integration projects are highly variable, but $26 million is a substantial investment.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
Oversight will be crucial to ensure Boeing meets integration milestones and manages costs effectively. The Department of the Navy's contracting and program management teams are responsible for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for sole-source dependency post-award.
- NRE costs can be unpredictable and prone to overruns.
- Integration complexity may lead to schedule delays.
- Limited visibility into specific performance metrics.
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 $26.0 million to THE BOEING COMPANY. ECP-6516 AIRCRAFT INTEGRATION NRE
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 $26.0 million.
What is the period of performance?
Start: 2020-06-25. End: 2025-02-28.
What specific aircraft systems are being integrated, and what is the expected performance improvement?
The contract specifies 'Aircraft Integration NRE,' suggesting the development and integration of new or upgraded systems onto existing aircraft platforms. The expected performance improvements would likely relate to enhanced avionics, weapons systems, or operational capabilities, though specific details are not provided in this data snippet. Further documentation would be required to ascertain the precise nature of the integration and its anticipated benefits.
What were the key factors that led to Boeing being the sole awardee despite full and open competition?
Despite full and open competition, Boeing may have been the sole awardee due to possessing unique technical expertise, proprietary technology, or existing platform knowledge essential for this specific integration. The complexity of the NRE requirements or the need for seamless integration with existing Boeing-manufactured platforms could also have favored their bid, potentially leading to a more cost-effective or technically superior solution compared to competitors.
How does this $26 million investment align with the Navy's broader strategic goals for aircraft modernization?
This $26 million investment in aircraft integration NRE likely supports the Navy's strategic goals by enhancing the capabilities of its existing or future aircraft fleets. Such integration is crucial for maintaining technological superiority, adapting to evolving threats, and ensuring interoperability across different platforms. The specific nature of the integration would determine its direct contribution to modernization objectives, such as improved survivability, lethality, or operational efficiency.
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
Offers Received: 3
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: $29,725,437
Exercised Options: $26,022,194
Current Obligation: $26,022,194
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $895,866
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: 2020-06-25
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2024-04-03
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