Boeing awarded $27.4M contract for RADOME, a sole-source delivery order under a larger IDIQ
Contract Overview
Contract Amount: $27,386,590 ($27.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2026-09-30
Contract Duration: 734 days
Daily Burn Rate: $37.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RADOME
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to THE BOEING COMPANY for work described as: RADOME Key points: 1. Contract value represents a significant investment in specialized aircraft components. 2. Sole-source award raises questions about potential price efficiencies and market alternatives. 3. Long-term contract duration suggests a sustained need for these critical parts. 4. Fixed-price contract structure shifts performance risk to the contractor. 5. Awarded by the Department of the Navy, indicating a focus on naval aviation readiness. 6. The contractor, Boeing, has extensive experience in aerospace manufacturing.
Value Assessment
Rating: fair
The contract value of $27.4 million for RADOME components appears substantial. Without specific per-unit cost data or comparable contract benchmarks, a precise value-for-money assessment is challenging. However, given the sole-source nature, there's a risk that the pricing may not reflect the most competitive market rates. Further analysis would require benchmarking against similar specialized aircraft part procurements and understanding the cost drivers for RADOME production.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's deemed more efficient to use an existing contract vehicle. The lack of competition means potential price advantages from a bidding process were not realized, and it limits the government's ability to explore alternative solutions or pricing structures.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This could lead to higher overall costs for these essential aircraft components.
Public Impact
Naval aviation units will benefit from the continued availability of critical RADOME components, ensuring aircraft operational readiness. The services delivered include the manufacturing and supply of specialized parts essential for aircraft functionality. The geographic impact is primarily within the Department of the Navy's operational theaters, supporting global missions. Workforce implications include continued employment for skilled manufacturing personnel at The Boeing Company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Lack of transparency in the procurement process due to non-competitive nature.
- Potential for cost overruns if pricing is not rigorously managed without market pressure.
- Dependence on a single supplier for critical components could pose supply chain risks.
Positive Signals
- Award to a reputable and experienced contractor, The Boeing Company, suggests a high likelihood of successful delivery.
- Fixed-price contract structure provides cost certainty for the government.
- Long contract duration indicates a stable and predictable supply chain for essential parts.
- Delivery order under an existing IDIQ may streamline administrative processes and reduce overhead.
Sector Analysis
The aerospace manufacturing sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. RADOMES, as specialized components, fall within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. This contract represents a portion of the broader defense spending allocated to maintaining and upgrading naval aviation fleets. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar high-value, specialized aircraft components within the defense industry.
Small Business Impact
This contract was awarded to The Boeing Company and does not appear to include specific small business set-aside provisions. Given the nature of the specialized components and the prime contractor's size, it is unlikely that significant subcontracting opportunities for small businesses will be mandated under this specific award. However, Boeing's broader subcontracting policies may offer some opportunities, but they are not explicitly detailed in this award notice.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Department of Defense Aircraft Procurement
- Naval Aviation Readiness Programs
- Aerospace Component Manufacturing
- Sole-Source Defense Contracts
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Dependence on single supplier
Tags
defense, department-of-defense, department-of-the-navy, aircraft-parts, sole-source, delivery-order, firm-fixed-price, the-boeing-company, missouri, specialized-manufacturing, naval-aviation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to THE BOEING COMPANY. RADOME
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 $27.4 million.
What is the period of performance?
Start: 2024-09-26. End: 2026-09-30.
What is the historical spending pattern for RADOME components by the Department of the Navy?
Analyzing historical spending on RADOME components by the Department of the Navy requires access to detailed procurement databases. Without specific historical data for this contract vehicle or similar sole-source awards, it's difficult to establish a precise pattern. However, defense spending on aircraft parts is generally consistent, driven by fleet maintenance, modernization programs, and operational tempo. Sole-source awards, like this one, can sometimes indicate a lack of competitive alternatives or a strategic decision to maintain a specific supplier relationship. If this is a recurring need, historical data would likely show periodic awards for these components, potentially with fluctuating prices depending on market conditions and contract type.
How does the $27.4 million contract value compare to similar RADOME procurements?
A direct comparison of the $27.4 million contract value for RADOME components to similar procurements is challenging without access to a comprehensive database of comparable contracts, especially sole-source awards. RADOME complexity, material, and specific aircraft integration requirements can lead to significant price variations. Generally, specialized aerospace components can command high prices due to advanced manufacturing processes, stringent quality control, and R&D costs. The sole-source nature of this award means it may not reflect the most competitive market price. Benchmarking against competitively bid contracts for similar items, if available, would provide a clearer picture of value for money.
What are the specific risks associated with a sole-source award for critical aircraft parts?
Sole-source awards for critical aircraft parts carry several risks. Primarily, the absence of competition can lead to inflated pricing, as the contractor faces less pressure to offer the most cost-effective solution. This can result in taxpayers paying more than necessary. Secondly, it can limit innovation and the exploration of alternative technologies or materials that might be offered by other potential suppliers. There's also a risk of vendor lock-in, making it difficult and costly to switch suppliers in the future. Finally, a sole-source award can reduce transparency in the procurement process, making it harder to scrutinize the justification for the price and the selection of the contractor.
What is The Boeing Company's track record with Department of Defense contracts, particularly for aircraft components?
The Boeing Company has an extensive and long-standing track record as a major defense contractor for the Department of Defense (DoD). They are a primary manufacturer of military aircraft, including fighters, bombers, and transport planes, and also produce a wide array of aircraft components and systems. Their history with the DoD includes numerous large-scale contracts, both competitively awarded and sole-source, across various branches of the military. While generally considered a reliable supplier, like any large contractor, they have experienced contract disputes, performance issues, and cost overruns on certain programs. However, their overall experience and established infrastructure position them as a capable provider for complex aerospace requirements like RADOME manufacturing.
What are the potential performance implications of this contract for naval aviation readiness?
This contract's primary implication for naval aviation readiness is the assurance of a supply chain for critical RADOME components. RADOMES are essential for protecting sensitive radar equipment housed within them, ensuring accurate navigation, targeting, and communication systems function correctly. By securing these components through this contract, the Department of the Navy aims to maintain the operational capability of its aircraft. A consistent supply of high-quality RADOMES directly supports flight schedules, reduces aircraft downtime for repairs or replacements, and ultimately contributes to the overall effectiveness and readiness of the naval aviation fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $55,891,000
Exercised Options: $55,891,000
Current Obligation: $27,386,590
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $33,480,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GYY01
IDV Type: BOA
Timeline
Start Date: 2024-09-26
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-06-20
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