DoD awards Boeing $18.16M for Aircraft Kits, raising concerns about limited competition and taxpayer impact
Contract Overview
Contract Amount: $18,160,015 ($18.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-23
End Date: 2026-12-31
Contract Duration: 2,199 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ECP 6472, 6482, 6444 A-KITS PROCUREMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63166
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to THE BOEING COMPANY for work described as: ECP 6472, 6482, 6444 A-KITS PROCUREMENT Key points: 1. Significant award to a single large contractor, Boeing. 2. Limited competition raises questions about price discovery and value for money. 3. Long contract duration (2199 days) increases risk exposure. 4. Sector is Other Aircraft Parts Manufacturing, a critical defense component.
Value Assessment
Rating: questionable
The award amount of $18.16M for aircraft kits appears substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine if the pricing is optimal or inflated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a sole-source or limited competition scenario. This significantly hinders price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests that taxpayers may not be receiving the best possible price for these aircraft kits, potentially leading to overspending.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Dependence on a single contractor for critical aircraft parts could pose supply chain risks. The long contract duration could lock in potentially suboptimal pricing for an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
- Potential for overpricing
Positive Signals
- Award to established contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector, which is vital for maintaining military aviation readiness. Spending benchmarks in this niche sector are hard to establish without competitive data.
Small Business Impact
The award went to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for their participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable despite the lack of bidding.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Long contract duration
- Sole-source award
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to THE BOEING COMPANY. ECP 6472, 6482, 6444 A-KITS PROCUREMENT
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 $18.2 million.
What is the period of performance?
Start: 2020-12-23. End: 2026-12-31.
What was the justification for not competing this contract, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED.' A thorough review would require access to the contract file to ascertain the specific justification (e.g., sole-source necessity, urgent need) and verify its adequacy according to federal procurement regulations. Without this documentation, it's impossible to fully assess the legitimacy of the limited competition.
How does the $18.16M award compare to historical pricing for similar aircraft kits, if available?
Benchmarking this $18.16M award against historical data for similar aircraft kits is challenging without access to that comparative pricing information. The lack of competition further complicates this, as there's no current market price established through bidding. An independent cost analysis or review of past sole-source awards for comparable items would be necessary.
What are the potential risks associated with a long-term (2199 days) firm fixed-price contract awarded without competition?
A long-term, firm fixed-price contract awarded without competition carries risks of overpayment if market prices decrease or if initial cost estimates were too high. It also limits flexibility to incorporate technological advancements or address unforeseen issues. The government is locked into the price, potentially absorbing inefficiencies of the contractor over the extended period.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0019
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $22,753,770
Exercised Options: $18,160,015
Current Obligation: $18,160,015
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,123,464
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-23
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-14
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