Navy Awards $150M+ Contract for Aircraft Structural Component Repair to Boeing
Contract Overview
Contract Amount: $67,736,518 ($67.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2006-07-18
End Date: 2012-01-16
Contract Duration: 2,008 days
Daily Burn Rate: $33.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200610!467324!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042106C0075 !A!N! !Y! ! !20060718!20070930!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001411846!N!N!000062366944!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !1! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y!1719!N00421!0001! !
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $67.7 million to THE BOEING COMPANY for work described as: 200610!467324!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042106C0075 !A!N! !Y! ! !20060718!20070930!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!60650!037!24!PATUXENT RIVER NAS !ST. … Key points: 1. The contract is for maintenance and repair of aircraft structural components. 2. Boeing, the sole awardee, has a significant presence in the aerospace sector. 3. The contract's 'Not Competed' status raises questions about price discovery and potential value. 4. The sector is critical for national defense, with high stakes for equipment readiness.
Value Assessment
Rating: questionable
The contract value is substantial at over $150 million. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential aircraft repair services.
Public Impact
Ensures continued operational readiness for naval aircraft. Supports a major defense contractor, potentially impacting jobs in the aerospace industry. Highlights the government's reliance on established prime contractors for specialized maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Ensures critical maintenance is performed
- Supports established aerospace capabilities
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and repair. Spending in this area is crucial for maintaining military readiness and is often characterized by complex, high-value contracts.
Small Business Impact
The awardee is The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific contract, either as subcontractors or direct awardees.
Oversight & Accountability
The 'Not Competed' status warrants further oversight to ensure the government received the best possible value. Accountability for the pricing and performance of this sole-source contract is essential.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- Sole-source award to a large prime contractor
Tags
other-support-activities-for-air-transpo, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.7 million to THE BOEING COMPANY. 200610!467324!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042106C0075 !A!N! !Y! ! !20060718!20070930!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000001411846!N!N!000062366944!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !1! ! ! ! ! !999
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 $67.7 million.
What is the period of performance?
Start: 2006-07-18. End: 2012-01-16.
What justification was provided for not competing this contract, and does it align with federal procurement regulations for sole-source awards?
Federal regulations allow for sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why competition was not feasible or practicable, potentially citing unique technical capabilities, proprietary data, or urgent needs that preclude a competitive process. Without access to the specific justification document, it's impossible to verify its validity.
How does the cost of this contract compare to industry benchmarks for similar aircraft structural component repair services, especially considering the lack of competition?
Benchmarking the cost of this contract is challenging due to its sole-source nature. Typically, competitive bidding drives prices down. Without comparable bids, assessing whether the $150M+ price is reasonable requires detailed cost analysis of labor, materials, and overhead, potentially using historical data from similar, albeit competitively awarded, contracts or industry cost models. The absence of competition inherently raises concerns about potential overpricing.
What mechanisms are in place to ensure the quality and effectiveness of the repair services provided by Boeing under this contract, given it was not competitively selected?
Despite the lack of competition, the government typically employs robust contract management and oversight to ensure quality and effectiveness. This includes performance standards, inspection protocols, acceptance criteria, and potentially independent technical reviews. The contract likely includes clauses for remedies in case of non-performance or substandard work. However, the absence of competitive pressure might reduce the incentive for proactive quality improvements.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 63166
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-07-18
Current End Date: 2012-01-16
Potential End Date: 2012-01-16 00:00:00
Last Modified: 2016-03-10
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