DoD Awards Boeing $85M for Landing Gear Parts Kit, Raising Oversight Concerns
Contract Overview
Contract Amount: $85,014,425 ($85.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-11-30
End Date: 2025-10-23
Contract Duration: 1,423 days
Daily Burn Rate: $59.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PARTS KIT, LANDING GEAR
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $85.0 million to THE BOEING COMPANY for work described as: PARTS KIT, LANDING GEAR Key points: 1. Significant award to a single large contractor, The Boeing Company. 2. No competition was identified for this contract. 3. Potential for taxpayer overpayment due to lack of competitive bidding. 4. Contract duration extends over three years, impacting long-term value.
Value Assessment
Rating: questionable
The contract's total award value is $85,014,425. Without competitive benchmarks or per-unit cost data, it is difficult to assess if this price is reasonable compared to similar landing gear parts kits.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited source selection. The lack of competition may have hindered price discovery and potentially led to a higher price for the government.
Taxpayer Impact: The absence of competition for this substantial award raises concerns about the efficient use of taxpayer funds, as a more competitive process could have yielded cost savings.
Public Impact
Taxpayers may be paying more than necessary for critical aircraft components. Dependence on a single supplier for essential parts can create supply chain vulnerabilities. Lack of transparency in the procurement process limits public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
- Sole-source award
Positive Signals
- Award to established contractor
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can be substantial, especially for defense applications, and often involves complex, specialized components where competition can be challenging.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved in this specific procurement, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status and limited justification warrant close oversight to ensure the government received fair value. Further review of the sole-source justification and pricing is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited transparency
- Long-term commitment without competitive validation
- Sole-source award
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.0 million to THE BOEING COMPANY. PARTS KIT, LANDING GEAR
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 $85.0 million.
What is the period of performance?
Start: 2021-11-30. End: 2025-10-23.
What is the justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price was negotiated?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require detailed documentation outlining reasons such as urgency, unique capabilities, or lack of available sources. Without this information, it's impossible to assess the validity of the sole-source decision or the effectiveness of the price negotiation process.
What is the risk associated with awarding a multi-year contract for landing gear parts to a single supplier without competition?
The primary risk is financial: the government may be overpaying due to the absence of competitive pressure. Additionally, there's a strategic risk of supply chain dependency and potential vulnerability if the sole supplier faces production issues or price increases. This also limits opportunities for other qualified manufacturers to compete for government business.
How does this contract contribute to the overall effectiveness of the Department of the Navy's aircraft maintenance and readiness?
This contract provides essential landing gear parts, which are critical for aircraft safety and operational readiness. While the award ensures a supply of these components, the lack of competition raises questions about the cost-effectiveness of maintaining this readiness. Ensuring timely delivery and quality of parts is key to operational effectiveness.
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: N0038321R001H
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: $128,371,782
Exercised Options: $128,371,782
Current Obligation: $85,014,425
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $34,871,821
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038317GA301
IDV Type: BOA
Timeline
Start Date: 2021-11-30
Current End Date: 2025-10-23
Potential End Date: 2025-10-23 00:00:00
Last Modified: 2025-10-28
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