Boeing awarded $23.6M contract for aircraft manufacturing by the Department of the Navy
Contract Overview
Contract Amount: $23,646,030 ($23.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-02-16
End Date: 2026-06-30
Contract Duration: 1,230 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AUTODICASS + ACOMMS STUDY
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $23.6 million to THE BOEING COMPANY for work described as: AUTODICASS + ACOMMS STUDY Key points: 1. Contract value of $23.6 million for aircraft manufacturing services. 2. Awarded to The Boeing Company, a major aerospace manufacturer. 3. Contract duration spans from February 2023 to June 2026. 4. The contract is a delivery order under a larger agreement. 5. The specific product service code (PSC) is not detailed, but the North American Industry Classification System (NAICS) code is 336411 for aircraft manufacturing. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the exact scope of work and comparison to similar aircraft manufacturing contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can incentivize cost increases if oversight is not rigorous. Without more detailed performance metrics or comparable contract data, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicated as 'NOT AVAILABLE FOR COMPETITION'. This means that the Department of the Navy did not solicit bids from multiple contractors. Sole-source awards typically occur when only one contractor possesses the necessary capabilities, technology, or is the only source for a required item or service. This lack of competition can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.
Public Impact
The primary beneficiary is the Department of the Navy, receiving aircraft manufacturing services. The contract supports the operational readiness and capabilities of naval aviation assets. The geographic impact is primarily centered around the contractor's facilities in California. This contract likely supports a workforce skilled in aerospace engineering, manufacturing, and assembly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Cost Plus Fixed Fee (CPFF) contract type carries a risk of cost escalation if not closely monitored.
- Lack of detailed scope of work for this delivery order makes precise value assessment difficult.
- Limited public information on the specific aircraft or components being manufactured.
Positive Signals
- Awarded to a major, established aerospace manufacturer (The Boeing Company) with significant experience.
- Contract duration provides a stable period for production and delivery.
- Delivery order structure suggests it's part of a pre-existing framework agreement, potentially streamlining acquisition.
Sector Analysis
The aerospace manufacturing sector is a critical component of the defense industrial base, characterized by high barriers to entry, complex supply chains, and significant R&D investment. The NAICS code 336411 specifically covers the manufacturing of aircraft, which includes military aircraft. Spending in this sector is heavily influenced by defense budgets and national security priorities. Comparable spending benchmarks would typically involve other large-scale aircraft production contracts for military branches.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses within Boeing's supply chain. However, the extent of small business participation is not specified in the provided data and would depend on Boeing's subcontracting plan.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are allowable, reasonable, and allocable. Transparency is limited by the sole-source nature and the proprietary aspects of aircraft manufacturing. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations if fraud, waste, or abuse were suspected.
Related Government Programs
- Naval Aviation Programs
- Aircraft Procurement
- Defense Manufacturing Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Sole-source award may lead to higher costs.
- CPFF contract type increases government cost risk.
- Lack of detailed scope of work for delivery order.
Tags
defense, department-of-defense, department-of-the-navy, aircraft-manufacturing, boeing, cost-plus-fixed-fee, sole-source, delivery-order, california, naics-336411
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to THE BOEING COMPANY. AUTODICASS + ACOMMS STUDY
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 $23.6 million.
What is the period of performance?
Start: 2023-02-16. End: 2026-06-30.
What is the specific type of aircraft or components being manufactured under this contract?
The provided data does not specify the exact type of aircraft or components being manufactured under this $23.6 million delivery order. The North American Industry Classification System (NAICS) code 336411 indicates general aircraft manufacturing. Without further details, it is impossible to determine if this relates to new aircraft production, upgrades, or specific component manufacturing for existing naval aviation platforms. This lack of specificity limits a deeper understanding of the contract's strategic importance and technical scope.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for aircraft manufacturing?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a predetermined fixed fee, representing profit. For aircraft manufacturing, especially for complex or developmental programs where cost estimation is difficult, CPFF can be used. However, it shifts cost risk to the government, as the contractor is incentivized to incur costs to achieve the fixed fee. Other contract types like Firm-Fixed-Price (FFP) place more cost risk on the contractor and are often preferred for well-defined requirements to ensure better price certainty for the government. The choice of CPFF here suggests potential uncertainties in the scope or cost estimation for this specific delivery order.
What are the potential risks associated with a sole-source award for aircraft manufacturing?
Sole-source awards in aircraft manufacturing carry significant risks. Primarily, the absence of competition means the government cannot leverage market forces to obtain the best possible price, potentially leading to inflated costs. It can also reduce the incentive for the sole-source provider to innovate or improve efficiency, as there is no direct competitive pressure. Furthermore, it can limit the government's options if the contractor faces performance issues or financial instability. For critical defense assets like aircraft, relying on a single source can also create strategic vulnerabilities in the supply chain.
What is The Boeing Company's track record with the Department of the Navy for similar contracts?
The Boeing Company is a major defense contractor with a long-standing relationship with the Department of the Navy, involved in producing and supporting various naval aircraft platforms. While specific performance data for this particular delivery order is not available, Boeing has a history of delivering complex aerospace systems. However, like many large defense contractors, they have also faced scrutiny and challenges related to cost, schedule, and performance on various programs. A comprehensive assessment would require reviewing historical contract performance reports and past performance evaluations specific to the Navy.
How does this $23.6 million contract fit into the overall spending on naval aircraft manufacturing?
This $23.6 million delivery order represents a relatively small portion of the Department of the Navy's overall budget for aircraft manufacturing and procurement, which typically runs into billions of dollars annually. Large-scale aircraft programs, such as fighter jets, maritime patrol aircraft, or helicopters, involve significantly larger contract values. This specific award likely pertains to a specific production run, modification, or support activity for an existing platform rather than the acquisition of a new major aircraft system. Its significance lies in its contribution to maintaining or enhancing specific naval aviation capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0052
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14441 ASTRONAUTICS LN, HUNTINGTON BEACH, CA, 92647
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: $24,210,186
Exercised Options: $24,210,186
Current Obligation: $23,646,030
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001922D0007
IDV Type: IDC
Timeline
Start Date: 2023-02-16
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-09
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