Boeing Awarded $153M for Landing Gear Parts Kit, Raising Concerns Over Competition
Contract Overview
Contract Amount: $153,419,668 ($153.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-09-25
End Date: 2024-09-30
Contract Duration: 1,832 days
Daily Burn Rate: $83.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PARTS KIT,LANDING G
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $153.4 million to THE BOEING COMPANY for work described as: PARTS KIT,LANDING G Key points: 1. Significant contract value of $153.4 million for aircraft parts. 2. Sole-source award to The Boeing Company limits competitive pricing. 3. Long contract duration of 5 years may not reflect current market conditions. 4. Focus on critical aircraft components highlights potential supply chain risks.
Value Assessment
Rating: questionable
The contract's value of $153.4 million for a landing gear parts kit is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or alternative suppliers.
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 significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these landing gear parts, as there was no pressure from competing bids to drive down the price.
Public Impact
Taxpayers may be overpaying for essential aircraft components due to the absence of competitive bidding. Reliance on a single supplier for critical parts could create vulnerabilities in the defense supply chain. The long contract duration raises questions about adaptability to technological advancements or market price fluctuations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to established prime contractor
- Focus on critical defense components
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but often involves specialized components where competition can be limited.
Small Business Impact
The contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is reasonable and that future opportunities for competition are explored.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may not reflect current market value.
- Potential for overpayment due to lack of competitive bidding.
- Lack of transparency regarding specific cost breakdowns.
- Dependency on a single supplier for critical components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.4 million to THE BOEING COMPANY. PARTS KIT,LANDING G
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 $153.4 million.
What is the period of performance?
Start: 2019-09-25. End: 2024-09-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific rationale for not competing it needs to be thoroughly documented by the Department of the Navy. Oversight should verify if market research was conducted to identify potential competitors and if any barriers prevented a competitive solicitation process.
How does the unit cost of these landing gear parts compare to industry benchmarks or previous contracts?
Benchmarking the per-unit cost is crucial for assessing value. Without access to specific unit pricing or comparable contract data, it's challenging to determine if $153.4 million is reasonable. A detailed cost analysis by the agency, or an independent review, would be necessary to compare this pricing against similar procurements or commercial off-the-shelf equivalents, if applicable.
What measures are in place to ensure the quality and timely delivery of these critical aircraft parts under a long-term, sole-source contract?
Given the sole-source nature and long duration, robust quality assurance and performance monitoring are essential. The Department of the Navy should have stringent inspection protocols and performance metrics in place. Regular reviews of Boeing's production capabilities and delivery schedules are necessary to mitigate risks associated with a single supplier and ensure mission readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0038319RH495
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $153,419,668
Exercised Options: $153,419,668
Current Obligation: $153,419,668
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $97,136,835
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038317GA301
IDV Type: BOA
Timeline
Start Date: 2019-09-25
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-04-03
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