Navy Awards Boeing $36.4M for Aircraft Manufacturing Amidst Sole-Source Concerns
Contract Overview
Contract Amount: $36,384,256 ($36.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-04
End Date: 2027-02-28
Contract Duration: 451 days
Daily Burn Rate: $80.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OP24/25 SEPM AND SE/MATERIAL
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $36.4 million to THE BOEING COMPANY for work described as: OP24/25 SEPM AND SE/MATERIAL Key points: 1. Significant contract value of $36.4 million awarded to a single large business. 2. Sole-source award to Boeing raises questions about competition and potential price inflation. 3. Risk of limited competition impacting innovation and cost-effectiveness in aircraft manufacturing. 4. Sector focus on Aircraft Manufacturing, a critical but often concentrated industry.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure with a base of $8.07 million and a ceiling of $36.4 million warrants scrutiny. Without competitive benchmarks, assessing the fairness of the fixed fee and overall pricing is challenging.
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 lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this substantial contract could result in inflated prices, directly impacting taxpayer funds allocated to defense procurement.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Potential for reduced innovation in aircraft manufacturing if sole-source awards become common. Dependence on a single contractor could create supply chain vulnerabilities for the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Award to established prime contractor
- Supports critical defense capability
Sector Analysis
The Aircraft Manufacturing sector is vital for national defense, but often dominated by a few large players. This contract's value is moderate within the broader defense spending landscape, but its sole-source nature is a key concern.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth within the defense industrial base and could indicate a lack of outreach or specific program requirements.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the fixed fee is reasonable and that the government is receiving fair value. Transparency in the justification for not competing is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- No small business participation
- Limited transparency on justification
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to THE BOEING COMPANY. OP24/25 SEPM AND SE/MATERIAL
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 $36.4 million.
What is the period of performance?
Start: 2025-12-04. End: 2027-02-28.
What is the justification for awarding this contract on a sole-source basis, and has a thorough market analysis been conducted to confirm no other capable sources exist?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. A comprehensive market analysis is essential to validate these claims and ensure no viable alternatives were overlooked. Without this information, the decision to bypass competition raises significant concerns about potential cost inefficiencies and missed opportunities for innovation.
How does the fixed fee in this Cost Plus Fixed Fee contract compare to industry standards for similar aircraft manufacturing services, and what mechanisms are in place to control costs beyond the fixe
Assessing the fixed fee requires benchmarking against comparable contracts for aircraft manufacturing, considering factors like complexity, scope, and duration. The Cost Plus Fixed Fee structure inherently shifts some risk to the government, making robust oversight critical. Mechanisms to control costs beyond the fixed fee might include performance incentives, stringent change order management, and regular audits to ensure efficiency and prevent cost overruns.
What is the long-term strategy for ensuring competitive sourcing in this specific area of aircraft manufacturing to avoid recurring sole-source awards and foster innovation?
A long-term strategy to foster competition could involve breaking down future requirements into smaller, more accessible contract vehicles, investing in R&D for alternative technologies, and actively seeking out and nurturing new entrants into the market. The Department of Defense should explore strategies like phased procurements or technology maturation programs to reduce reliance on single sources and encourage a more dynamic and innovative supplier base.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS 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: $36,384,256
Exercised Options: $36,384,256
Current Obligation: $36,384,256
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001918D0001
IDV Type: IDC
Timeline
Start Date: 2025-12-04
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-12-17
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