DoD's $12.9M Boeing Contract for Aircraft Engine Parts Lacks Competition, Raises Value Concerns
Contract Overview
Contract Amount: $12,937,706 ($12.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-11-07
End Date: 2026-12-31
Contract Duration: 1,515 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY20 FMS SPARES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to THE BOEING COMPANY for work described as: FY20 FMS SPARES Key points: 1. Significant spending on aircraft engine parts by the Department of the Navy. 2. Sole reliance on The Boeing Company for this critical component. 3. Potential for inflated costs due to lack of competitive bidding. 4. The contract falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without competitive benchmarks. The firm fixed-price structure offers some cost certainty, but the absence of competition may lead to prices above fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award could result in higher prices, leading to inefficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying for essential aircraft engine parts due to the absence of competitive bidding. The Department of the Navy's reliance on a single supplier could create supply chain vulnerabilities. Lack of transparency in pricing for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Firm fixed-price contract type
- Essential for aircraft maintenance
Sector Analysis
This contract is within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this sector is often substantial due to the high cost and complexity of these parts.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and prevent potential waste, fraud, and abuse.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for overpricing due to lack of competition
- Limited transparency in pricing
- Long contract duration may mask cost increases
- Dependency on a single supplier
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 $12.9 million to THE BOEING COMPANY. FY20 FMS 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 $12.9 million.
What is the period of performance?
Start: 2022-11-07. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis, and has a thorough market research been conducted to confirm no other capable sources exist?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A robust justification and comprehensive market research are crucial to validate this approach. Without this information, it's difficult to ascertain if alternative suppliers were overlooked or if unique circumstances truly necessitate a single source, which could impact overall value for money.
How does the unit cost of these aircraft engine parts compare to similar components procured competitively by the DoD or other government agencies?
Benchmarking the per-unit cost against competitively procured, similar aircraft engine parts is essential for assessing value. Given this is a sole-source award, there's a heightened risk of inflated pricing. A detailed cost analysis, potentially involving independent government cost estimates or comparison with industry data, is needed to determine if the current pricing is reasonable and reflects fair market value.
What measures are in place to ensure the quality and timely delivery of these critical aircraft engine parts, given the long contract duration and sole-source nature?
With a contract duration extending to December 2026 and a sole-source award, robust quality assurance and performance monitoring are paramount. The Department of the Navy should have stringent inspection processes and performance metrics in place to ensure the parts meet specifications and are delivered on schedule, mitigating risks associated with a single supplier and long-term commitment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: GUIDED MISSLES
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: $13,227,188
Exercised Options: $12,937,706
Current Obligation: $12,937,706
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $6,920,747
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: 2022-11-07
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-18
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)