Boeing awarded $25.6M contract for aircraft engine parts by the Department of the Navy
Contract Overview
Contract Amount: $25,623,415 ($25.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-09-25
End Date: 2029-03-25
Contract Duration: 1,277 days
Daily Burn Rate: $20.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JCTS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to THE BOEING COMPANY for work described as: JCTS Key points: 1. Contract awarded for critical aircraft engine components, indicating ongoing sustainment needs. 2. Sole-source award suggests potential lack of market competition or specialized requirements. 3. Long contract duration of over 1000 days may indicate a need for stable supply. 4. Fixed-price contract type shifts risk to the contractor for cost overruns. 5. Awarded by the Department of the Navy, highlighting defense sector focus. 6. Contractor has a long history with the government, evidenced by the 'br' field.
Value Assessment
Rating: fair
The contract value of $25.6 million for aircraft engine parts appears moderate given the duration and the nature of defense procurement. Without specific details on the exact parts or quantities, a direct value-for-money assessment is challenging. However, the sole-source nature of the award raises questions about whether competitive pricing was fully explored. Benchmarking against similar sole-source awards for specialized aerospace components would be necessary for a more definitive valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, THE BOEING COMPANY, was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for excluding competition. The lack of multiple bidders means that price discovery through a competitive process was absent, potentially leading to higher costs for the government.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices, potentially resulting in less favorable terms for taxpayers.
Public Impact
The U.S. Navy benefits from the continued supply of essential aircraft engine parts, ensuring operational readiness of its fleet. This contract supports the maintenance and sustainment of critical military aviation assets. The geographic impact is primarily in Missouri, where the contractor is located. The contract supports jobs within the aerospace manufacturing sector, specifically related to engine components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing opportunities.
- Long contract duration could expose the government to price increases over time if not structured carefully.
- Reliance on a single contractor for critical components can create supply chain vulnerabilities.
Positive Signals
- Fixed-price contract type provides cost certainty for the government.
- Award to an established contractor like Boeing suggests a level of trust and proven capability.
- Contract supports the sustainment of vital defense assets, ensuring national security.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high barriers to entry, significant R&D investment, and stringent quality control requirements. Government contracts are a substantial driver of demand in this area, supporting specialized manufacturing capabilities essential for national defense. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar engine components across different military branches.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, THE BOEING COMPANY, is a large aerospace manufacturer. While large prime contractors are often required to subcontract portions of their work to small businesses, the specific subcontracting plan for this award is not detailed here. The absence of a set-aside suggests that the primary focus was on securing the required components from a specific, capable source rather than prioritizing small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance requirements and delivery schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Aircraft Engine Maintenance
- Defense Logistics Agency Contracts
- Naval Aviation Sustainment
- Aerospace Manufacturing Support
Risk Flags
- Sole-source award may limit price competition.
- Long contract duration could pose risks if market conditions change.
- Reliance on a single supplier for critical components.
Tags
defense, department-of-the-navy, aircraft-engine-parts, manufacturing, sole-source, firm-fixed-price, missouri, large-business, sustainment, fixed-price
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to THE BOEING COMPANY. JCTS
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 $25.6 million.
What is the period of performance?
Start: 2025-09-25. End: 2029-03-25.
What specific aircraft engine parts are being procured under this contract?
The provided data does not specify the exact aircraft engine parts being procured. The North American Industry Classification System (NAICS) code '336412' indicates 'Aircraft Engine and Engine Parts Manufacturing,' which is a broad category. To understand the precise nature of the components, one would need to consult the detailed contract award documents or associated technical specifications. This information is crucial for assessing the criticality of the parts, potential obsolescence risks, and the complexity of the manufacturing process, all of which impact value and risk.
What is the historical spending pattern for this specific type of aircraft engine part with THE BOEING COMPANY?
The provided data indicates a 'br' (base year or prior contract reference) value of 20065, which likely represents a prior contract or baseline value related to this procurement, though its exact meaning is ambiguous without further context. To establish a comprehensive historical spending pattern, one would need to query contract databases for all previous awards to THE BOEING COMPANY for similar aircraft engine parts under the same or related NAICS codes and contract types. Analyzing trends in award values, quantities, and contract durations over several years would reveal if current spending is consistent, increasing, or decreasing, and help identify any anomalies or significant shifts in procurement volume or cost.
How does the contract duration of 1277 days compare to typical sustainment contracts for similar engine parts?
A contract duration of 1277 days (approximately 3.5 years) for aircraft engine parts is relatively long, suggesting a need for sustained supply over a significant period. Typical sustainment contracts for complex aerospace components can indeed span several years, often aligning with the operational life cycles of the aircraft platforms they support. However, the appropriateness of this duration depends heavily on factors such as the expected service life of the parts, the rate of consumption, technological obsolescence risks, and the stability of the supply chain. Comparing this duration to other similar sole-source or competitively awarded sustainment contracts for comparable engine parts within the Department of Defense would provide a clearer benchmark for assessing whether it is standard, extended, or unusually short.
What are the specific performance metrics and delivery schedules outlined in the contract?
The provided data does not include specific performance metrics or delivery schedules. These details are typically found within the contract's statement of work (SOW) or performance work statement (PWS). Key performance indicators (KPIs) might include on-time delivery rates, defect rates, quality acceptance criteria, and response times for technical support. Delivery schedules would outline the quantities of parts to be delivered by specific dates throughout the contract's period of performance. Robust oversight and accountability rely on clearly defined and measurable performance standards, allowing the government to track contractor performance effectively and ensure timely receipt of compliant goods and services.
Are there any identified risks associated with THE BOEING COMPANY's ability to fulfill this contract, given its sole-source nature?
The sole-source nature of this award inherently carries risks related to price and potential lack of innovation, as competition is absent. Specific risks associated with THE BOEING COMPANY's ability to fulfill this contract would depend on factors not detailed in the summary data, such as their current production capacity, existing backlog, financial health, and historical performance on similar contracts. While Boeing is a major defense contractor with extensive experience, any sole-source award warrants scrutiny to ensure the government is not disadvantaged. A thorough risk assessment would involve reviewing past performance evaluations, supply chain stability, and potential single points of failure in their manufacturing or delivery process.
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: $26,999,000
Exercised Options: $26,999,000
Current Obligation: $25,623,415
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $2,749,492
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: 2025-09-25
Current End Date: 2029-03-25
Potential End Date: 2029-03-25 00:00:00
Last Modified: 2025-09-30
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