Boeing Awarded $31.7M DoD Contract for MMP Integration NRE, No Competition
Contract Overview
Contract Amount: $31,718,461 ($31.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-09-12
End Date: 2026-09-11
Contract Duration: 1,095 days
Daily Burn Rate: $29.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MMP INTEGRATION NRE
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $31.7 million to THE BOEING COMPANY for work described as: MMP INTEGRATION NRE Key points: 1. Significant contract value of $31.7 million awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract is for Aircraft Engine and Engine Parts Manufacturing, a critical defense sector. 4. Long duration of 1095 days suggests a substantial, ongoing project.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, making value assessment challenging.
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 potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for a $31.7 million contract means taxpayers may be paying more than necessary for the goods or services provided.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Potential for reduced innovation and slower development cycles without market competition. Dependence on a single contractor for critical aircraft engine components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Awarded to a major defense contractor with proven capabilities
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a key area for defense spending. Benchmarks for similar sole-source, cost-plus contracts in this sector are often higher due to specialized requirements and limited suppliers.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets contract requirements. Robust auditing of the Cost Plus Fixed Fee structure is essential for accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency in pricing
- No small business participation noted
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to THE BOEING COMPANY. MMP 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 $31.7 million.
What is the period of performance?
Start: 2023-09-12. End: 2026-09-11.
What specific justifications were provided for the sole-source award, and do they align with federal procurement regulations for non-competitive contracts?
Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification documentation is needed to confirm its validity and ensure it meets the criteria for limiting competition, especially for a contract of this magnitude.
How will the government ensure cost control and prevent overruns in this Cost Plus Fixed Fee contract awarded without competition?
Effective cost control will rely heavily on stringent government oversight, detailed auditing of Boeing's incurred costs, and clear performance metrics. Regular reviews of the contractor's financial management and progress reports are crucial to identify potential cost escalations early and ensure the fixed fee remains appropriate for the work performed.
What is the long-term strategy for ensuring competitive sourcing for future needs related to MMP integration, beyond this initial NRE phase?
The Department of Defense should develop a clear roadmap for transitioning to a competitive environment for subsequent phases of MMP integration. This might involve market research to identify potential alternative sources, breaking down future requirements into smaller, more competitive packages, or fostering new entrants into the market.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts 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 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: $32,037,872
Exercised Options: $31,718,461
Current Obligation: $31,718,461
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $64,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2023-09-12
Current End Date: 2026-09-11
Potential End Date: 2026-09-11 00:00:00
Last Modified: 2023-11-18
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