DoD Awards Boeing $57.2M for Aircraft Engine Parts, Lacking Competition
Contract Overview
Contract Amount: $57,230,408 ($57.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-02-14
End Date: 2029-04-30
Contract Duration: 1,536 days
Daily Burn Rate: $37.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DTP-N FRP 4/5 B-KITS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $57.2 million to THE BOEING COMPANY for work described as: DTP-N FRP 4/5 B-KITS Key points: 1. Significant contract value awarded to a single large business. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Long contract duration (over 5 years) increases long-term risk. 4. Aircraft engine parts manufacturing is a critical but concentrated sector.
Value Assessment
Rating: questionable
The contract's firm fixed price structure aims to control costs. However, without competition, it's difficult to benchmark pricing against market rates, potentially leading to suboptimal value for taxpayers.
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 may result in higher costs than if multiple vendors had submitted bids.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential aircraft engine parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Dependence on a single supplier for critical defense components poses a supply chain risk. The long-term nature of the contract locks in current pricing without market adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- No small business participation identified
Positive Signals
- Firm fixed price contract type
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is substantial, and competition is often limited due to high barriers to entry and specialized knowledge.
Small Business Impact
The data indicates no identified small business participation in this contract. Given the sole-source nature and the prime contractor, opportunities for small businesses to subcontract may be limited or non-existent.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The lack of competition warrants close scrutiny to ensure fair pricing and performance.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- No identified small business participation
- Long contract duration (over 5 years)
- Potential for price inflation without market checks
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 $57.2 million to THE BOEING COMPANY. DTP-N FRP 4/5 B-KITS
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $57.2 million.
What is the period of performance?
Start: 2025-02-14. End: 2029-04-30.
What is the justification for awarding this contract sole-source, and has a thorough market analysis been conducted to ensure no viable competitive alternatives exist?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. A comprehensive market analysis is crucial to validate these claims and ensure taxpayers are not disadvantaged by the absence of competition. Without this information, it's difficult to assess if the government explored all avenues for competitive pricing.
How does the firm fixed price compare to historical pricing for similar components or to industry benchmarks, especially given the lack of competitive pressure?
Benchmarking the firm fixed price against historical data for the same or similar components, and against industry averages, is essential. In a sole-source scenario, this comparison becomes even more critical to identify potential cost overruns or inefficiencies. The absence of competition means the government relies heavily on its own analysis to ensure the price is fair and reasonable.
What are the potential risks associated with a sole-source award for critical aircraft engine parts, particularly concerning long-term availability and technological obsolescence?
Sole-source awards for critical components carry risks of supply chain disruption if the sole provider faces issues. There's also a risk of technological stagnation, as the supplier may have less incentive to innovate without competitive pressure. Long-term availability could be jeopardized if the supplier's business strategy changes, potentially impacting defense readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001925R0280
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: $113,986,444
Exercised Options: $57,230,408
Current Obligation: $57,230,408
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: 2025-02-14
Current End Date: 2029-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2025-12-31
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