Boeing Secures $43.8M Navy Contract for Target Lo Processors, Amidst Firm Fixed Price Terms
Contract Overview
Contract Amount: $43,836,404 ($43.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-06-29
End Date: 2025-12-31
Contract Duration: 1,281 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCESSOR,TARGET LO
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to THE BOEING COMPANY for work described as: PROCESSOR,TARGET LO Key points: 1. The contract value of $43.8M is significant for specialized aircraft engine parts. 2. Boeing, a major defense contractor, faces competition from other large aerospace firms. 3. Risk factors include potential supply chain disruptions and performance adherence. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a critical defense component.
Value Assessment
Rating: good
The firm fixed price contract suggests a clear understanding of costs. Benchmarking against similar processor contracts is difficult without more granular data, but the value appears reasonable for specialized military hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were solicited. This competitive process generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for these essential aircraft components.
Public Impact
Ensures continued availability of critical components for naval aircraft. Supports the operational readiness of the U.S. Navy's fleet. Contributes to the defense industrial base and associated employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source justification if competition falters in future.
- Dependency on a single large contractor for critical parts.
- Long-term sustainment costs not fully detailed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost overrun risk.
- Long contract duration ensures supply stability.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a high-value segment of the aerospace industry. Spending in this area is driven by defense needs and technological advancements, with significant investment required for R&D and production.
Small Business Impact
While the prime contractor is Boeing, a large business, the contract may indirectly benefit small businesses through subcontracting opportunities within the aerospace supply chain. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's oversight mechanisms should ensure adherence to contract terms, quality standards, and delivery schedules. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Dependency on a single large prime contractor.
- Potential for supply chain disruptions affecting delivery.
- Long-term sustainment and upgrade costs.
- Complexity of specialized military hardware manufacturing.
- Geopolitical factors impacting global supply chains.
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 $43.8 million to THE BOEING COMPANY. PROCESSOR,TARGET LO
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 $43.8 million.
What is the period of performance?
Start: 2022-06-29. End: 2025-12-31.
What is the specific function of the 'TARGET LO' processor and how does its performance impact naval aviation?
The 'TARGET LO' processor likely plays a crucial role in targeting and navigation systems for naval aircraft. Its precise function is proprietary but essential for mission success, affecting accuracy, response times, and overall system reliability. Failures or suboptimal performance could compromise mission effectiveness and crew safety, highlighting the importance of robust design and manufacturing.
What are the key performance indicators (KPIs) used to measure Boeing's success under this contract, and what are the penalties for non-compliance?
Key performance indicators likely include on-time delivery, adherence to technical specifications, quality control metrics (e.g., defect rates), and potentially reliability benchmarks. Penalties for non-compliance could range from liquidated damages for late delivery to contract termination for significant quality issues or failure to meet critical performance standards, impacting future contract awards.
How does the firm fixed price (FFP) structure mitigate risks for the Department of Defense compared to other contract types in this specialized manufacturing sector?
The FFP structure shifts the primary cost risk to the contractor, Boeing. This means the government pays a set price regardless of Boeing's actual costs, providing budget certainty and protecting against unexpected cost increases. While this can lead to higher initial prices to account for contractor risk, it simplifies financial oversight and reduces the potential for cost overruns compared to cost-plus contracts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $43,836,404
Exercised Options: $43,836,404
Current Obligation: $43,836,404
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $789,786
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2022-06-29
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-04-09
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