DoD Awards Boeing $53.2M for LAD/LPHUD Repair, Extending to April 2027
Contract Overview
Contract Amount: $53,241,553 ($53.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-11-28
End Date: 2027-04-27
Contract Duration: 515 days
Daily Burn Rate: $103.4K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAD/LPHUD REPAIR
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $53.2 million to THE BOEING COMPANY for work described as: LAD/LPHUD REPAIR Key points: 1. Significant contract value of $53.2 million for aircraft repair. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Long contract duration of 515 days may impact price flexibility. 4. Focus on aircraft parts suggests a critical defense maintenance need.
Value Assessment
Rating: questionable
The contract's value of $53.2 million for aircraft parts repair is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under SAP, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competitive bidding means taxpayers may be paying a premium for these aircraft repair services, as there was no market pressure to drive down prices.
Public Impact
Ensures continued operational readiness of naval aircraft by providing essential repair services. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Lack of transparency in pricing due to sole-source award could lead to inefficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense need
- Established contractor with expertise
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending in this area is critical for national security and maintaining military readiness.
Small Business Impact
The award went to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific contract, either as subcontractors or as prime bidders.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further oversight may be needed to confirm the necessity of a non-competitive procurement.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- Long contract duration may not reflect current market conditions.
- No clear benefit to small businesses indicated.
- Reliance on a single contractor for critical repairs.
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 $53.2 million to THE BOEING COMPANY. LAD/LPHUD REPAIR
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 $53.2 million.
What is the period of performance?
Start: 2025-11-28. End: 2027-04-27.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific details on this contract's justification, it's presumed the Department of the Navy determined Boeing was the only viable option. However, robust price analysis and negotiation are crucial to mitigate the risks associated with non-competitive procurements and ensure taxpayer funds are used efficiently.
What are the potential risks associated with a sole-source contract for aircraft repair services?
Sole-source contracts carry inherent risks, including inflated pricing due to the lack of competition, potential for reduced quality if the contractor faces no market pressure, and a lack of innovation. For critical aircraft repair, this could lead to higher operational costs for the military and longer downtime if the contractor's performance falters without alternative options readily available.
How does this contract contribute to the overall effectiveness of naval aviation readiness?
This contract is vital for maintaining the operational readiness of naval aircraft by ensuring necessary repairs are performed. By securing repair services for LAD/LPHUD components, the Department of the Navy can keep its aircraft mission-capable, directly supporting naval operations and national security objectives. The long duration suggests a sustained need for these specific repair capabilities.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: N0038325RT439
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: $104,432,672
Exercised Options: $104,432,672
Current Obligation: $53,241,553
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $62,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GYY01
IDV Type: BOA
Timeline
Start Date: 2025-11-28
Current End Date: 2027-04-27
Potential End Date: 2027-04-27 00:00:00
Last Modified: 2026-04-08
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