Boeing Awarded $30.8M for ABOS Production Kits by Navy, No Competition

Contract Overview

Contract Amount: $30,788,456 ($30.8M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-12-23

End Date: 2025-01-30

Contract Duration: 1,865 days

Daily Burn Rate: $16.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ABOS PRODUCTION KITS. PMT N61340-19-NORFP-PMA-273-0491

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to THE BOEING COMPANY for work described as: ABOS PRODUCTION KITS. PMT N61340-19-NORFP-PMA-273-0491 Key points: 1. Significant contract value of $30.8 million for aircraft manufacturing. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Long contract duration of 1865 days suggests potential for cost overruns. 4. Department of the Navy is the primary agency involved.

Value Assessment

Rating: questionable

The contract value of $30.8 million for ABOS Production Kits is difficult to assess without specific unit cost data. However, the lack of competition suggests potential for suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this $30.8 million contract means taxpayers may not be receiving the best possible price.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long contract duration could lead to unforeseen cost increases. Dependence on a single supplier for critical production kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency in pricing

Positive Signals

Award to established prime contractor
Clear delivery end date

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for ABOS Production Kits. Spending in this sector is critical for defense readiness, but competitive sourcing is key to efficiency.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure fair pricing and prevent potential waste, fraud, and abuse.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Long contract duration increases risk of cost overruns.
Potential for reduced innovation due to lack of competition.
No apparent small business participation.
Lack of transparency regarding pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to THE BOEING COMPANY. ABOS PRODUCTION KITS. PMT N61340-19-NORFP-PMA-273-0491

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 $30.8 million.

What is the period of performance?

Start: 2019-12-23. End: 2025-01-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details on the ABOS Production Kits, it's difficult to ascertain the specific rationale. However, such awards necessitate rigorous justification to ensure taxpayer funds are used responsibly and that competition was genuinely not feasible.

What are the risks associated with a sole-source contract of this duration?

Sole-source contracts, especially those with a long duration like 1865 days, carry risks of price escalation, reduced innovation, and vendor lock-in. The government has less leverage to negotiate favorable terms over time. There's also a risk that the contractor may not maintain competitive efficiency, potentially leading to higher costs and lower quality than if competition were present.

How can the effectiveness of this contract be measured given the lack of competition?

Effectiveness can be measured by adherence to delivery schedules, quality of the ABOS Production Kits, and whether the delivered product meets the specified requirements. Performance metrics and key performance indicators (KPIs) within the contract are crucial. However, without a competitive baseline, it's harder to definitively state if the government achieved optimal value for money.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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 JS 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: $30,788,456

Exercised Options: $30,788,456

Current Obligation: $30,788,456

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $10,339,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001916G0001

IDV Type: BOA

Timeline