DoD Awards Boeing $101.4M for Trailing Edge Flap Kits, Lacking Competition
Contract Overview
Contract Amount: $101,425,718 ($101.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-03-20
End Date: 2030-06-30
Contract Duration: 1,928 days
Daily Burn Rate: $52.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF TRAILING EDGE FLAP REVISION 2 A1 KITS (LH) AND A2 KITS (RH)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $101.4 million to THE BOEING COMPANY for work described as: PROCUREMENT OF TRAILING EDGE FLAP REVISION 2 A1 KITS (LH) AND A2 KITS (RH) Key points: 1. Significant contract value for aircraft parts. 2. Sole-source award to Boeing raises competition concerns. 3. Long contract duration (2025-2030) warrants close monitoring. 4. Focus on aircraft engine parts manufacturing sector.
Value Assessment
Rating: fair
The total award of $101.4M over approximately 6 years for flap kits appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to potential market alternatives.
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 potentially leads to higher costs for taxpayers as there is no market pressure to reduce prices.
Taxpayer Impact: The absence of competition for a large contract like this means taxpayers may be overpaying for these critical aircraft components.
Public Impact
Ensures continued operational readiness for naval aircraft. Supports a major defense contractor and its supply chain. Potential for higher costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long-term contract
- Sole-source award
Positive Signals
- Supports critical defense needs
- Award to established prime contractor
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often high due to specialized requirements and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is The Boeing Company. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure fair pricing and contract performance. Regular reviews of cost and delivery are crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price discovery
- Long contract duration
- Sole-source award
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.4 million to THE BOEING COMPANY. PROCUREMENT OF TRAILING EDGE FLAP REVISION 2 A1 KITS (LH) AND A2 KITS (RH)
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 $101.4 million.
What is the period of performance?
Start: 2025-03-20. End: 2030-06-30.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition. The Department of the Navy should have documented reasons why this procurement could not be competed, such as specific technical requirements only Boeing could meet or urgent needs where competition would cause unacceptable delays. Without this documentation, it's difficult to ascertain the validity of the sole-source decision.
How does the per-unit cost of these flap kits compare to historical data or similar procurements?
Without access to historical data or benchmarks for similar flap kits, a direct per-unit cost comparison is not possible. However, given the sole-source nature and the significant total value, it is crucial for the agency to conduct an independent cost analysis. This analysis should compare the proposed price against independent government estimates and any available commercial pricing data for comparable components to ensure reasonableness.
What are the risks associated with a long-term, sole-source contract for critical aircraft components?
The primary risks include potential cost overruns due to the lack of competitive pressure, reduced innovation, and vendor lock-in. If Boeing faces production issues or increases its prices significantly over the contract period, the Navy has limited options to mitigate these impacts. Furthermore, reliance on a single source for critical parts can create supply chain vulnerabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $101,425,718
Exercised Options: $101,425,718
Current Obligation: $101,425,718
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $4,663,418
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: 2025-03-20
Current End Date: 2030-06-30
Potential End Date: 2030-06-30 00:00:00
Last Modified: 2025-06-20
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