DoD awards $57.7M for FY22 initial spares to Boeing, impacting aircraft engine parts manufacturing
Contract Overview
Contract Amount: $57,749,000 ($57.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-07-29
End Date: 2027-12-31
Contract Duration: 1,981 days
Daily Burn Rate: $29.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY22 INITIAL SPARES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $57.7 million to THE BOEING COMPANY for work described as: FY22 INITIAL SPARES Key points: 1. Significant award for aircraft engine parts, a critical defense component. 2. Sole-source award to Boeing raises questions about price discovery and competition. 3. Long-term contract (5 years) suggests sustained demand for these spares. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The award amount of $57.7M for initial spares is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar aircraft engine parts.
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 lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential aircraft engine spares.
Public Impact
Ensures availability of critical aircraft engine parts for the Navy. Supports a major defense contractor, potentially impacting jobs and the aerospace sector. Long-term commitment may influence future procurement strategies for similar items.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures critical spares availability
- Supports established supplier
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector, a key area for defense readiness. Spending benchmarks for such specialized parts are often high due to R&D and manufacturing complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor (Boeing) and the nature of the product suggest large-scale operations.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential cost overruns. Regular reviews of performance and cost justification are recommended.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price gouging
- Long-term dependency on one supplier
- Limited transparency in pricing
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.7 million to THE BOEING COMPANY. FY22 INITIAL SPARES
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 $57.7 million.
What is the period of performance?
Start: 2022-07-29. End: 2027-12-31.
What is the justification for awarding this contract sole-source?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without further details, it's difficult to ascertain the specific rationale, but it warrants scrutiny to ensure it aligns with federal procurement regulations.
What are the potential risks associated with a sole-source award for critical spares?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for reduced innovation, and over-reliance on a single supplier. This can lead to higher long-term costs for the government and taxpayers. Additionally, supply chain disruptions at the sole source could have significant impacts on operational readiness.
How can the government ensure value for money in future sole-source procurements of this nature?
To ensure value, the government should conduct thorough market research to confirm the necessity of a sole-source approach, negotiate aggressively on price using cost analysis and benchmarking, and consider establishing performance-based metrics. Implementing robust oversight and requiring detailed cost breakdowns from the contractor are also essential steps.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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 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: $57,749,000
Exercised Options: $57,749,000
Current Obligation: $57,749,000
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $46,736,550
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2022-07-29
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-09-11
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