DoD Awards Boeing $9.3M Contract for Navy Air Transportation Support
Contract Overview
Contract Amount: $9,309,273 ($9.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $25.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NTWL BASELINE TASK ORDER 3.
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $9.3 million to THE BOEING COMPANY for work described as: NTWL BASELINE TASK ORDER 3. Key points: 1. Contract awarded to The Boeing Company for essential air transportation support. 2. Significant value of $9.3 million highlights the scale of the requirement. 3. Limited competition raises questions about potential price discovery and value. 4. The 'Other Support Activities for Air Transportation' sector is critical for military readiness.
Value Assessment
Rating: questionable
Pricing is based on a Cost Plus Fixed Fee structure, which can incentivize higher costs. Without a competitive benchmark or detailed cost breakdown, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This limits price discovery and may result in a higher price than if full and open competition were utilized.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these support services.
Public Impact
Ensures continued operational readiness for naval air assets. Supports critical logistics and maintenance functions for the Department of the Navy. Potential for increased costs due to limited competition impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of detailed cost data
Positive Signals
- Essential support for naval aviation
- Long-term contract duration
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a sector vital for maintaining military aviation capabilities. Spending in this area is often driven by specialized needs and existing platform sustainment.
Small Business Impact
The data indicates this contract was awarded to a large business (The Boeing Company) and does not show any specific set-aside for small businesses. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs. The Department of the Navy's contracting officers will need to closely monitor performance and expenditures.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competitive pricing data
- Potential for cost escalation
Tags
other-support-activities-for-air-transpo, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.3 million to THE BOEING COMPANY. NTWL BASELINE TASK ORDER 3.
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 $9.3 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What specific factors led to this contract being 'NOT AVAILABLE FOR COMPETITION'?
The determination of 'NOT AVAILABLE FOR COMPETITION' typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Further investigation into the specific justification provided by the Department of the Navy is needed to understand the rationale behind limiting competition for these air transportation support services.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs in this contract?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While the fee is fixed, the overall cost is variable. This structure can incentivize contractors to incur higher costs to increase their absolute profit margin, necessitating robust government oversight to manage expenditures effectively.
What is the potential risk of cost overruns given the contract type and limited competition?
The combination of a CPFF contract type and limited competition presents a moderate to high risk of cost overruns. Without competitive pressure to drive efficiency and transparency, and with a contract structure that allows for cost reimbursement, there is an increased likelihood that actual costs could exceed initial estimates.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042123R0030
Pricing Type: COST PLUS FIXED FEE (U)
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: $13,501,040
Exercised Options: $10,910,565
Current Obligation: $9,309,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042124D0007
IDV Type: IDC
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-11
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