Boeing Awarded $6.9M for FMS ISS Support by Navy, No Competition
Contract Overview
Contract Amount: $6,939,456 ($6.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-02-01
End Date: 2026-01-31
Contract Duration: 730 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FMS ISS SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to THE BOEING COMPANY for work described as: FMS ISS SUPPORT Key points: 1. Contract awarded to The Boeing Company for FMS ISS Support. 2. Significant contract value of $6.94 million. 3. No competition was involved in this award. 4. The contract falls under Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the fixed fee is reasonable.
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 lack of competition may result in the government paying more than necessary for these services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for cost escalation under the Cost Plus Fixed Fee contract type. Lack of transparency in the procurement process. Dependence on a single contractor for critical support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency
Positive Signals
- Award to established contractor
- Clear contract duration
Sector Analysis
This contract is within the Aircraft Manufacturing sector, which often involves complex and specialized services. Benchmarks for similar support contracts are difficult to ascertain without competitive data.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and the contractor is performing effectively. The sole-source nature necessitates robust government monitoring.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation
Tags
aircraft-manufacturing, department-of-defense, mo, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to THE BOEING COMPANY. FMS ISS SUPPORT
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 $6.9 million.
What is the period of performance?
Start: 2024-02-01. End: 2026-01-31.
What is the justification for the sole-source award, and how was the fixed fee determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without a competitive process, the government must independently verify the fairness and reasonableness of the fixed fee through cost analysis and market research. This ensures that the price reflects the value of the services provided and prevents potential overpayment.
What are the specific risks associated with a Cost Plus Fixed Fee contract in this context, and how are they being mitigated?
The primary risk of a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as the government bears most of the expense. Mitigation strategies include rigorous oversight, detailed cost tracking, performance metrics, and clear contract clauses that penalize inefficiencies or reward cost savings. Effective management is key to preventing cost overruns.
How does this contract contribute to the overall effectiveness of the Department of the Navy's FMS ISS program?
The effectiveness of this contract hinges on the contractor's ability to deliver the specified FMS ISS support reliably and efficiently. Its contribution to the program's overall success depends on the criticality of the support provided, the contractor's expertise, and the alignment of the contract's objectives with the Navy's mission requirements. Performance monitoring is essential to gauge its true impact.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $20,353,861
Exercised Options: $7,915,740
Current Obligation: $6,939,456
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-02-01
Current End Date: 2026-01-31
Potential End Date: 2029-01-31 00:00:00
Last Modified: 2025-12-09
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