Boeing Awarded $34.7M Navy Contract for Target Load Processors, Amidst Ongoing Oversight
Contract Overview
Contract Amount: $34,703,824 ($34.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-16
End Date: 2026-12-31
Contract Duration: 1,567 days
Daily Burn Rate: $22.1K/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 $34.7 million to THE BOEING COMPANY for work described as: PROCESSOR,TARGET LO Key points: 1. Contract value of $34.7 million for target load processors. 2. Awarded to The Boeing Company, a major defense contractor. 3. Potential risks associated with sole-source or limited competition for specialized parts. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $34.7 million for target load processors appears moderate. Benchmarking against similar specialized aircraft parts requires detailed cost data, which is not readily available. However, the firm fixed-price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive bidding environment.
Public Impact
Ensures the availability of critical components for naval operations. Supports a major defense contractor and its supply chain. Potential for technological advancements in target processing systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single large contractor for specialized parts.
- Potential for cost overruns if initial estimates are inaccurate.
- Long contract duration (over 4 years) may not reflect market changes.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Supports critical defense capabilities.
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 and technological superiority, with benchmarks varying significantly based on the specificity and complexity of the parts.
Small Business Impact
The data indicates the award went to a large business (The Boeing Company). There is no explicit information on subcontracting opportunities for small businesses within this specific award, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The firm fixed-price contract type provides some cost control, but ongoing monitoring of performance and delivery is essential to ensure accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for sole-source dependency if competition is limited in practice.
- Long-term contract duration may not adapt to rapid technological changes.
- Lack of explicit small business subcontracting goals.
- Need for robust performance monitoring to ensure value.
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 $34.7 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 $34.7 million.
What is the period of performance?
Start: 2022-09-16. End: 2026-12-31.
What is the specific technical capability required for these target load processors, and how does it justify the contract value?
The specific technical capability relates to the processing of target data for naval aircraft systems. This likely involves complex hardware and software integration to ensure accurate and timely information for targeting. The contract value reflects the specialized nature of the components, the research and development involved, and the stringent quality and reliability standards required for defense applications.
Are there any identified risks related to the performance or reliability of Boeing's target load processors?
While the data doesn't explicitly state performance risks, any complex electronic component for military use carries inherent risks. These could include potential for defects, obsolescence, or integration issues with existing systems. The firm fixed-price nature aims to mitigate financial risk for the government, but ongoing testing and quality assurance are critical to ensure operational reliability.
How effectively does this contract contribute to the overall mission readiness and technological advancement of the Navy's aircraft fleet?
This contract directly contributes to mission readiness by ensuring the availability of essential components for targeting systems. By procuring these processors, the Navy maintains the operational capability of its aircraft. Furthermore, the investment may indirectly foster technological advancement if the processors incorporate new or improved functionalities, enhancing the fleet's overall effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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: $34,703,824
Exercised Options: $34,703,824
Current Obligation: $34,703,824
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $18,605,313
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GYY01
IDV Type: BOA
Timeline
Start Date: 2022-09-16
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-03-17
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