Boeing awarded $18.3M for aircraft parts, with delivery orders extending through March 2028
Contract Overview
Contract Amount: $18,315,220 ($18.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-06-06
End Date: 2028-03-01
Contract Duration: 999 days
Daily Burn Rate: $18.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: STABILIZER,HORIZONT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to THE BOEING COMPANY for work described as: STABILIZER,HORIZONT Key points: 1. Contract value appears reasonable given the duration and specialized nature of aircraft components. 2. Sole-source award limits price discovery and potentially increases costs for the government. 3. Long contract duration suggests a sustained need for these critical aircraft parts. 4. Performance risk is moderate, given the contractor's established role in defense aviation. 5. This contract falls within the broader aerospace manufacturing sector, supporting military readiness. 6. The fixed-price contract type shifts cost overrun risk to the contractor.
Value Assessment
Rating: good
The contract value of $18.3 million over approximately 3 years (delivery orders through March 2028) for specialized aircraft parts appears to be within a reasonable range for such procurements. Benchmarking against similar sole-source awards for complex aerospace components is challenging due to proprietary data, but the price seems aligned with industry standards for high-specification parts. The firm fixed-price structure provides cost certainty for the government, although it may not capture the lowest possible price achievable through competition.
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 approach is typically used when a specific part is proprietary, only available from a single source, or when there's a critical need that cannot be met through a competitive process. The lack of competition means the government did not benefit from multiple bids to drive down prices or explore alternative solutions, potentially leading to a higher cost than if it had been competed.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these aircraft parts, as there was no market pressure to ensure the most cost-effective pricing. This highlights the importance of justifying sole-source awards to ensure fair and reasonable pricing.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other branches of the Department of Defense requiring these specific aircraft parts. The contract ensures the continued availability of critical components for maintaining and operating specific aircraft platforms. Geographic impact is primarily centered around the contractor's facilities and the operational bases where the aircraft are deployed. Workforce implications include continued employment for skilled manufacturing and engineering personnel at Boeing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
- Lack of transparency in pricing due to no competitive bidding process.
- Long-term reliance on a single supplier could create future supply chain vulnerabilities.
- Potential for scope creep or change orders in long-duration contracts.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Contractor is a major, established defense aerospace manufacturer with a track record.
- Ensures availability of critical, specialized aircraft parts for military readiness.
- Delivery orders provide flexibility in managing procurement timelines and quantities.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for defense aerospace components is characterized by high barriers to entry, specialized technical requirements, and significant government investment. Spending in this sector is driven by military readiness needs and the lifecycle support of complex weapon systems. Comparable spending benchmarks are difficult to establish publicly due to the proprietary nature of many defense contracts and the unique specifications of aircraft parts.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded to a large prime contractor, The Boeing Company. There is no explicit information provided regarding subcontracting plans for small businesses. Without a set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though Boeing's overall subcontracting activities may involve small businesses.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified parts. Transparency is limited due to the sole-source nature and the proprietary aspects of defense contracting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Parts Manufacturing
- Aerospace Defense Contracts
- Department of Defense Procurement
- Naval Aviation Support
- Sole-Source Defense Procurements
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
Tags
defense, department-of-defense, department-of-the-navy, aircraft-parts, aerospace-manufacturing, sole-source, firm-fixed-price, missouri, large-business, sustainment, military-readiness
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to THE BOEING COMPANY. STABILIZER,HORIZONT
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 $18.3 million.
What is the period of performance?
Start: 2025-06-06. End: 2028-03-01.
What is The Boeing Company's track record with the Department of Defense for similar aircraft parts contracts?
The Boeing Company has an extensive and long-standing track record with the Department of Defense, including the Department of the Navy, for the manufacturing and supply of aircraft parts and systems. As a major defense contractor, Boeing has historically been awarded numerous contracts for both new aircraft production and sustainment, which includes providing spare parts and support equipment. Their experience spans a wide range of aircraft platforms, from fighters and bombers to transport and rotary-wing aircraft. While specific performance data for individual contracts is often not publicly disclosed, Boeing's continued role as a primary supplier indicates a generally satisfactory performance history in meeting the demanding requirements of military aviation. However, like any large contractor, they have faced scrutiny and challenges on specific programs over the years, necessitating ongoing oversight.
How does the $18.3 million contract value compare to other sole-source awards for aircraft components?
Direct comparison of this $18.3 million contract value to other sole-source awards for aircraft components is challenging due to the highly specialized nature of such parts and the proprietary information surrounding pricing. Sole-source awards are often justified by unique technical specifications, intellectual property rights, or the limited number of qualified manufacturers. Generally, contracts for critical, high-technology aerospace components, especially those requiring extensive testing, certification, and integration, can range from hundreds of thousands to tens or even hundreds of millions of dollars, depending on the complexity, quantity, and lifecycle support involved. The value of this contract appears moderate within the spectrum of specialized defense aerospace procurements, suggesting it covers a specific set of parts rather than an entire aircraft system or extensive overhaul.
What are the primary risks associated with this sole-source contract for the government?
The primary risks associated with this sole-source contract for the government revolve around pricing and potential lack of innovation. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for taxpayers. The government may also lack visibility into alternative, potentially more cost-effective or technologically advanced solutions that could have emerged from a competitive bidding process. Furthermore, long-term sole-source reliance can create dependency on a single supplier, increasing vulnerability to supply chain disruptions or price increases in the future. There's also a risk that the contractor may not prioritize this contract as highly as they would a competitively won one, potentially impacting delivery schedules or responsiveness, although the firm fixed-price nature mitigates some financial risk.
How does the contract duration (delivery orders through March 2028) impact the overall value and risk?
The contract duration, with delivery orders extending through March 2028, implies a sustained need for these specific aircraft parts over approximately 3.5 years from the award date. This extended period allows for better production planning and potentially economies of scale for the contractor, which could translate into more stable pricing. For the government, it ensures a consistent supply chain for critical components, reducing the risk of stock-outs and operational delays. However, a longer duration also increases the exposure to potential market fluctuations, technological obsolescence, or changes in military requirements. The firm fixed-price nature helps mitigate financial risk related to cost overruns during this extended period, but the government remains exposed to the risk of paying a non-competitive price over the contract's life.
What are the implications of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code for this contract?
The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates that this contract is for components that are not engines, engines parts, or complete aircraft, but rather other essential supporting equipment. This could include items like landing gear components, structural elements, avionics housings, hydraulic systems parts, or other specialized hardware. This classification suggests a focus on the sustainment and operational readiness of existing aircraft fleets rather than the procurement of new platforms or major systems. It implies a market segment that requires specialized manufacturing capabilities, adherence to stringent quality control, and often, specific certifications relevant to aviation safety and performance.
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
Solicitation ID: N0038325RT089
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: $37,378,000
Exercised Options: $37,378,000
Current Obligation: $18,315,220
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $274,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GYY01
IDV Type: BOA
Timeline
Start Date: 2025-06-06
Current End Date: 2028-03-01
Potential End Date: 2028-03-01 00:00:00
Last Modified: 2025-07-10
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